Updated over 5 years ago on . Most recent reply
HELOC or LOC for a downpayment
What are your thoughts of using a HELOC or LOC for a downpayment then use a fix and flip loan to fix a house, sell then pay off the HELOC or LOC. We don't want to touch our reserve so debating and looking for thoughts if anybody has done this before
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another thing I might add is that you need to thoroughly read the rules for the fix and flip loans. I was about to use that method until I learned most lenders will require that as each portion of the rehab is completed it must be inspected before they release the funds. This will cost money each time an inspector is sent out. I am choosing a conventional lender who allows 15% down and then using the remainder of the HELOC for the rehab. Much lower costs that way. At least from what I have researched. Best of luck. The hardest part for me right now is competing with cash buyers.