I talked to a credit union about a line of credit on my home and I recommend you do the same!

[Quintin Mortensen]

I know this isn't that innovative because it's talked about on the podcast but it certainly isn't conventional. I went and talked to a local credit union about getting a line of credit and was pleasantly surprised at what they told me.

Here are the rules and outlines of getting a home line of credit.
-They base the value of your home on either your taxes assessed value or an appraisal.
-They will pay for the appraisal if you get a line of credit only up to 80% of the home's value.

- You can get a credit for 80% of the value of your home for under 4%, It is a variable rate but they keep it low to encourage people to use it. This may sound scary but the guy quickly looked up the history of the rate and it didn't exceed 4.25% in the last 5 yrs. 

- You can lock in the rate for 5 yrs for a slightly higher APR%.

- You can get a credit for 100% of the value of your home for around 9% but you must pay for the appraisal.

-You can get actual cash or they can give you a debit card.

-The monthly payment is 1.25% of the total balance. 

This was only for a primary residence. They didn't have anything other than just a straight up loan for investment properties. I wonder if they will do a line of credit on the assets of an LLC? I also wonder if you can get out cash to pay the line of credit. If anyone has experience with this let me know.

Has anyone used this strategy and have recommendations or things to look out for? I like the simplicity of this strategy and hope I can use it in the future.

[Matthew Paul]

Thats how I bought my last 2 houses for cash , they wouldnt pass any inspections , used hme equity line , bought them fixed them , then got a loan on them and paid back the line of credit.