All Forum Posts by: Chance Love

@Jake Williams I'm in the same boat on wanting to turn my primary into a rental and use 100k from a HELOC as a down payment on my future primary residence. I explored a cash out refi and almost closed a deal but in the end the numbers (closing costs) didn't make the most sense for me especially since I've lived in my primary for the last 10+ years and my current interest rate is below 4%. I do know with a HELOC you can close much quicker than a cash-out refi and you have more flexibility in my opinion. Since HELOCs are variable rates my potential lender stated you can always refinance your HELOC into one payment by combining your first mortgage.

@Justin Phillips Thanks for your feedback, can you explain the term "season the money from my HELOC?" The zero balance sweep checking account strategy sounds like a winner. Have you used this approach to purchase rental properties?

@Jaron Walling I've ran the numbers and it can produce a minimum of $1,000 + in cash flow, this includes moving forward with a HELOC with my preferred lender.

I've lived in my primary home for 10+ years that has a great amount of equity and I'm considering doing a HELOC and turning my current primary home into a rental which will produce great monthly cash flow based on the current market. My goal is to pull 20% for my next home from my current primary since I'd like to downsize and use that towards my future primary residence as a down payment. Is a HELOC typically accepted or not as a down payment for a primary home or is it case by case? Thanks in advance!