OfflineHello DG Family,
In reading Dean's books, one way to generate funds was to get a HELOC. Use it for your deals and when you make money off that deal, pay back your HELOC. I thought this was a great ideal, use the equity on your home for your down payments etc.
So I started calling around looking for a HELOC. I have about 30,000 to 40,000 of equity. I started with my lender, Bank of America. They made the requirements so difficult that you could not get a HELOC. Then they said that they are not doing these types of loans/line of credit anymore.
I called about 10 more lenders and they all said the same thing, we're not doing this type of line of credit anymore or so said they would only do 50-60% lines of credits, which means I can not use the equity on my property. What good is equity if can't use it? I still think using your equity is a great ideal, but it seems like the lenders don't think so. I hope I'm wrong.
Any help, advice, on where you can get a HELOC at 75-80% LTV would be greatly appreciated.
Thanks,
Mike R
Thanks for posting this! I look forward to the replies you receive.
Thanks again!
Louisa
Now to Him who by the power at work within us is able to do far more abundantly than all that we can imagine.
-Ephesians 3:20
Do not follow where the path may lead. Go instead where there is no path and leave a trail. - Ralph Waldo Emerson
My Journal on Dean's Site: http://bit.ly/ocv10
My HELOC through BOA is at 75% of value. I opened it about 18 months ago.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Author Unknown
We did a HELOC with our community bank in Jan. We started with 75% but they increased to 85%in Junes so I could use it. Check with your community banks. My Mortgage broker told me he could do it too. Keep calling.
Cathy
Louisa, Thanks a lot! I am so glad to be part of the DG family. I look forward to getting more replies and info that will help me and others get a HELOC. I will also be catching up on your journal today. I see that you have a done deal. That's great! I'm happy for you, you truly deserve it!
Thanks,
Mike R
BOA must have changed the game, because I talked to a guy yesterday for a half hour and he told me several times that 50-60 %LTV was all that they would do. Maybe I talked to the wrong guy.
Thanks
Mike R
I am currently working with a community bank that helped me get my investment property, this property is for sale or for rent. Before I started rehabbing I asked them could I refi at 75% LTV. They said yes, no problem. Once I finished rehabbing it and went to them for a refi, they got real nervous and asked me if I was having money problems. Going to them for a HELOC, might cause me more problems. What do you think? I also would like to refi my investment property, this way I could pull some cash out and still rent it for some positive cash flow. Still looking to refi this property, have not found funding yet.
Thanks for your help.
Mike R
Is your loan backed by Fannie Mae? I heard on the news yesterday that Fannie Mae just started a program Called the "PRP" Payment Reduction Plan. I heard they will finance investment properties as well. You can watch the information on this link.
http://realtytimes.com/ to hear about it.
CM
Try a local community bank or credit union. I know of a couple of invetors in my investment club that uses US BANK.