Updated almost 3 years ago on . Most recent reply
Using HELOC for downpayment
Do most lenders whether it be conventional or hard money not allow you to use HELOC for down payment on investment property? I have asked lima one and quicken and the both said no dice. How can I put this to work for me to help procure rental property without using all of my cash on hand?
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I would confirm this as the rules change all the time, but there is usually a 60 day look back on all accounts/funds. Meaning they only ask for last two months statements, and ask for explanations of what appears there re source of funds.
This means you can draw on HELOC and bank it for two statement cycles and then there will be no questions on source of downpayment funds.
Just verify it's still 60 days. No one will ask where you got the money from.