All Forum Posts by: Jeff Mousley

Yes, HOMEPATH can be used by investors as well. There is a short waiting period that allows owner occupiers first chance. They actually call that part FIRST CHANCE, then it opens up to investors.

Thanks Jon. Should not be an issue to cover the HELOC payments with our income. Just not quite at the level of equity in our home where I can quite pay cash and refinance later. Thought of getting a partner with a similar line of credit that we could buy properties outright and then finance after fix up. Bbut having another involved in decisions can bring new complexity to decison making.

May have to do the HELOC for down payment and let it season for a year before refinancing and taking the equity out for paying off HELOC.

Any opinions on using HOMEPATH program and its significantly lower down payment terms of 3-5%?

I am just beginning the process to arrange my financing for purchasing my first investment property. I am able to obtain a HELOC for about $60k from the equity in my home. The ranges of houses I am looking at generally run from $60-$80k. Obviously, I do not have enough HELOC to pay cash, fix up, get reappraised prior to getting permanent financing. I would like to pay cash and the fix up work would drive the reappraisel to cover the 20% down payment from built in equity.

My option I'm considering now is to use the HELOC to cover the 20% down payment when I get the mortgage. When I calculate the NOI for this property should this also capture the monthly interest payment for the HELOC ? Should I also factor in the payment on the principal for the HELOC? Probably good chance the cash flow would be tough to be positive while covering that much. Any suggestions on this approach is appreciated.