What should I do? HELOC or FHA?
Hi Guys,
Hope you are making a killing out there, and 2017 is already awesome for you.
I wanted to run three scenarios by you, and see which one you think I should go with.
Here we go: I`m thinking of buying my second property by mid-2017. In order to finance it, I thought of these three options/scenarios that I can use:
Scenario one:
• Take out HELOC (line of credit) out of my first house and use that as a down payment for the new property.
• If later in a year or 2018, I want to buy another house I would apply for FHA mortgage, and try to finance it that way.
Scenario two:
• Go with the FHA
• Later when I decide I want to buy a third house I would apply for HELOC loan and use that as a down payment.
• Downside of this situation is that I think since I would have two loans on my name I might have a problem with getting an HELOC loan because of my income.
Scenario three:
• Take out HELOC (line of credit) out of my first house now
• Buy my second property with an FHA loan
• And keep HELOC ready for any renovation and possible use as a down payment for my third house.
What do you think? Let me know. Your feedback is appreciated it!
Big thanks!