Updated over 2 years ago on . Most recent reply
How to use HELOC to purchase second home
Hey BP Community!
I have a HELOC, let's say $100K (to keep the math simple) and want to purchase a second property for $500K. Let's say I have $50K in cash so a total of $150K (includes $100K HELOC). How do I finance the balance of $350K? Would I need to get a second mortgage if there are no seller financing options? Are there creative ways to finance the $350K outside of a mortgage? I just don't see how a HELOC by itself can finance a property worth more than the HELOC amount and there is insufficient cash on hand to cover the difference. Your insight is appreciated!!