Financing next home? HELOC?

[Alan Fong]

I am currently renting but own 2 properties ~ both have 40-50% LTV. Both properties' rents cover all my expenses. My lease ends next year so I want to buy a small 1bedroom unit instead of renting. I do not plan to "refinance" the properties because I already locked in really low rates.

My DTI% is currently 30% with both properties (rent income + mortgage). However, I was told by a mortgage officer that I can exclude/offset the mortgage payments with the rental incomes from my DTI calculation (forgot what term he used, it has been awhile).

What's the best way to finance/buy my next property to live in?

1- Should I HELOC the down payment, and get a mortgage?
2- Pull HELOC from both homes to buy the unit? 1 HELOC won't be enough.
3- Any other ideas?

Where do you recommend getting a HELOC from? Should I start opening HELOCs with banks so I can pull $ out quickly? I have never used a HELOC before.

[Kerry Baird]

@Alan Fong for a HELOC a good strategy is to inquire at the community banks or credit unions local to the property. Perhaps one of these will work for you: CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank, Umpqua, Bank of Marin.