Buying a primary residence with equity

[Wendy S.]

Good Day everyone.

I would like to understand if my thinking to pull money back out after purchase is on point, flawed or get solution on how to do it.

PV $950,000

PP $805,000

DP $48,300 (6% $805,00) primary res

Loan $756,700

(Providing this is within the limits)

After purchase get a Heloc based on owner occupied 90% Ltv. So

90%*$950K-$756K=$99,000 Loan

Total Loan $855K ($756,700 + $99,000)

Is this doable, can be done immediately or require seasoning?

2nd option

PV $950,000

PP $805,000

DP $161,000 (20% avoids PMI)

Loan $644,000

Heloc

90%*$950K-$644,K = $211,000

Cash gained $50,000 ($211K-$161K)

Not sure about qualifying on the larger HELOC with higher repayment costs.

[Wendy S.]

@Suzie Remilien

Thanks for responding to my post, albeit in a general sense.

I am aware having equity to get a HELOC, based on my calculations my total loan would not exceed 90% of the value of the home. It would be an owner occupied loan hence a 90% Ltv vs 80 or 75 for an investment property.

Also aware of the total 45% DTI for conventional loan and perhaps a bit higher for FHA. I was asking given what I've shared is this viable or not or are there other factors I would need to consider.

Even just getting back initial investment could work as well, not necessary to get the additional $50,000.