All Forum Posts by: Connor Ryan

 Hi Nick, What state is the rental property located in?

 Hi Tony, what state is the investment property located?

My firm does HELOC's on investment properties pending the home is a SFH, Condo, or Townhomes. We lend in about half of the US. Feel free to shoot me a PM.

That's simply not true. Most firms will do them on Primary Residences, but my firm does them on investment properties pending the properties are SFH's, Condo's, or Townhomes.

Gotcha. My firm does HELOC's on investment properties in NJ, but requires you have a 6 month relationship (checking, cc, savings, etc) with our bank before we can lend.

Ralph, are the properties in NJ or other states?

My firm will do 70% on an investment property as long as its a SFH, Condo, or Townhome. Most lenders wont even offer a HELOC on a investment property much less go 100% LTV.

Hi Isaac, my firm does HELOC's nationwide. Would love to connect!

Lynn, 

This is a tricky situation but I believe that giving up a 2.75% interest rate is challenging to give up as we may not see rates that low for a long time. It really depends on the purpose of the $250k to help your sister. 

One option is that you could do a HELOC on the home now to get her the immediate $250k. HELOC rate's can hover between 7-10 % pending underwriting so you'd be locked in temporarily with a payment. However, rates could potentially drop in the next 12 months. If rates were to drop, you can now feel confident in selling your home, paying off the HELOC and getting a new downsized home at a lower rate than the current market. Also, this would give more time thus putting you in Long Term Capital Gains Exemption if you've lived in the home 2 of the last 5 years. You might also find that you have the ability to refinance in 6-12 months as that gives you more time to save cash and also watch the market. The only disadvantage is that you would pay the HELOC payment to buy time to see what happens.

I'm happy to discuss all options if you have questions about HELOC's.

-Connor

Hi Cameron, based off what you’ve explained I believe you could go several routes but a heloc would be great considering you have the equity in a rental already. Depending on your time period for construction, a heloc could be a great option as it provides flexibility and then you can always reuse later down the road. If you were to do a cash out refinance after the property is completed and take out that equity, you could pay off the heloc and lock in a lower long term rate on the home.