HELOC on an investment loan

[Kelvin J.]

Hi all. I bought an investment property and would like to move into it as my primary residence. To release the capital I have tied up in it, can I get a HELOC loan, or is there another option that is less expensive than a full refinance (large fees)? I've had the property 2 years. Thanks!

[Kyle J.]

You can get a HELOC on it whether it's an investment property or your primary residence, but if you're going to move into it and make it your primary residence I'd wait to get the HELOC until you do that because your options will be MUCH better at that point in terms of interest rate, LTV, and the number of banks/lenders that are willing to do it.

HELOCs are great because they're typically zero cost to a few hundred bucks (for an appraisal) to setup, and - once it's setup - it's always available when needed but you only pay interest when you actually use it.

Here's some questions you can ask when calling around to different lenders: What You Need to Know When Shopping for a HELOC.

Good luck.