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House Hacking

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John Cardinale
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HELOC when househacking

John Cardinale
Pro Member
Posted Apr 17 2024, 11:21

Hello all! I'm in a little situation that's got me scratching my head. I've been house hacking since 2014 in a duplex that I have a 3.8 mortgage on with about $175,000 principal balance. I have an existing HELOC through a local bank with balance of $100,000. The value of the duplex is likely $450,000. My current HELOC matures 12/31/2024 and I'm thinking this bank will not want to renew the loan (I'll verify this of course) because I've accumulated rentals over the years, and now I have quite a few mortgages. So I'm assuming that if my DTI and other convention mortgage stats don't add up, they won't renew this HELOC. I'm looking for a new lender for this HELOC product and I see this as the only solution if I'm going to keep my low-rate, first position mortgage intact. If anyone has any lender contacts for a second position loan while house-hacking please forward them to me.

sincerely, 

john
 

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Marcus Auerbach#5 General Real Estate Investing Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
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Marcus Auerbach#5 General Real Estate Investing Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
Replied Apr 18 2024, 05:45

John, most large national banks have actually very good HELOC options. Combined LTV varies between 70 and 100%, rates of course too. expect about half a point over prime.

If you have rental income, do you already have your 2023 taxes filed? That will help with DTI.

Put a pdf-package together with your financials, summary on the first page, shop it around, should not take you long.

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John Cardinale
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John Cardinale
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Replied Apr 18 2024, 07:26

my income in 2023 looks pretty tamed (on paper at least). I'll def. try what you said. Any particular larger national bank come to mind ? or do you have personal experience with any ? 

thanks for your reply! 


cheers,

john

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Jay Hurst
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Jay Hurst
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Replied Apr 19 2024, 05:13
Quote from @John Cardinale:

my income in 2023 looks pretty tamed (on paper at least). I'll def. try what you said. Any particular larger national bank come to mind ? or do you have personal experience with any ? 

thanks for your reply! 


cheers,

john


 If your properties are cash flowing they should NOT negatively effect your debt to income ratio. 

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John Cardinale
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John Cardinale
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Replied Apr 19 2024, 13:55

Thank for your response Jay. I see you're a lender. Does your company offer any HELOC products for primary residence/house being hacked property?