Can I consider my HELOC cash for making offers?

Question

If I'm using a HELOC to fund an acquisition, can I consider that an all cash offer? Would likely be part actually cash in my bank account and part HELOC. The money is mine to do with as I please but it's technically credit not cash so I'm not sure.

Thanks!

Dustin

Thanks!

Dustin

Dustin Mellor · Answer

Thank you @Andrew Postell! I do not have it yet but I'm also not making an offer at the moment. Just getting finances in order to make offers. I spoke to my bank and they were on board with my plan.

Dustin

Andrew Postell · Answer

@Dustin Mellor if you already have an open HELOC that you can draw against then I would say that you should feel comfortable to say your offer is a cash offer. If you don't have a HELOC and have to go apply then that would not be considered a cash offer.  It could take 30-45 days to be approved for a HELOC (depending on the bank).

Also, just in case, if you wanted to do a refinance after you buy this house using a HELOC to purchase this home would allow you to overlook any "cash out" or "delayed refinancing" restrictions.  If you have any questions on this aspect feel free to Private Message me.

@Marcus T. I would also provide you with the same advice.  If you have already completed your cash-out refinance and have the money in the bank then feel free to make your offer a cash offer.  A conventional loan cash out refinance will also take 30-45 days to complete depending on the bank.  A portfolio or Hard Money loan could be quicker but weight the pros and cons adequately.

Thanks!

Marcus T. · Answer

@Chris Seveney

That's great news. I'm planning to do the same but I wasn't certain of the time-frame to refi. Thanks for the info.

Sam Alomari · Answer

Of course! I have used heloc for cash offers recently.

Franco Li · Answer

The seller doesn't really care your source of finances as long as they get the check in the end! Good luck!

Can I consider my HELOC cash for making offers?

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