Flipper/Rehabber · Wilmington, DE · Member since 2018 · 16 posts · 1 vote
I'm thinking about possibly renting my home out in the near future or/keeping it ...I want to take out a HELOC to invest ....How long after can I use the funds to put down on an investment property Or does it have to be season for a couple months before I can do so
Gettysburg, PA · Member since 2017 · 17 posts · 16 votes
7y
most banks will like to see that you have own the house for at least a year before you can put it down to get a HELOC. However, if you rent it out, you can't technically keep the heloc as that property is not your primary residence. if you rent it out, you will have to get a line of credit which is similar to heloc but with a higher interest rate, since you will be putting your investment property up to the banks to get the line of credit.
I'm not sure what your question is? When you say "seasoned"...are you referring to the HELOC or your property?
Seasoning in real estate usually refers to the length of time that a homeowner has owned a particular home, known as title seasoning. Seasoning can also refer to the length of time a borrower has held a particular loan. This will not be the case with a HELOC. You can spend the money as soon a it is available to you. If you are trying to get a HELOC on a house you recently took a loan out on, then the bank may require you to service the loan for a predetermined amount of time before considering a refi or line of credit. I hope that answers your question !! good luck.
Gettysburg, PA · Member since 2017 · 17 posts · 16 votes
7y
most banks will like to see that you have own the house for at least a year before you can put it down to get a HELOC. However, if you rent it out, you can't technically keep the heloc as that property is not your primary residence. if you rent it out, you will have to get a line of credit which is similar to heloc but with a higher interest rate, since you will be putting your investment property up to the banks to get the line of credit.
Flipper/Rehabber · Wilmington, DE · Member since 2018 · 16 posts · 1 vote
7y
@Jackie LinI i have the house about nine months now so I am clear as far as pulling out Any kind of loan but thanks a lot I’ll keep that in mind....But I’m not sure if I should rent it out because I’m looking at anywhere from 200 to 250 of positive cash flow Not sure if that’s worth all the headache tenets my bring ...
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
7y
You can use a HELOC for whatever you want on the day you close. I think you are referring to a conventional cash out refi, which would be the next step after you acquire a rental. There are exceptions, but for conventional financing, you have to wait six months.