Hi Luis, I'm not sure I understand your question. A HELOC is created on a piece of property that you currently own. Are you asking about getting a HELOC on your primary residence to use to buy a rental property? If so you have lots of options with your local banks and credit unions. People seem not to shop around much and that is a costly choice.
The other possible way I might understand your question, is that you could buy a house for cash and then take a HELOC out on it. That is another option, and banks can do that.
Does that make sense?
PenFed, Wells Fargo
I believe you are confused.....the strategy you are talking about is some version of Velocity Banking (which is some made up name for it by the Renatus group) and it involves getting a heloc on a property you already own, in addition to your first mtg.. The idea is not magic, it basically involves paying extra on mtg, by using your heloc, then paying the heloc down, then keep doing it.
The bottom line is you are paying your mtg off substantially early because you are paying Extra money out of your pocket toward your mtg. You do Not need the heloc to do this, it just makes two steps out of one. But, if they didn’t sell it as magic, there would be nothing to sell.
@Luis Crespo , just saw this post and wanted to follow up and see how this worked out for you. I am purchasing a home and I am planning on purchasing with a HELOC as well. I have found a few lenders but would like to hear some success stories from others. Thanks