Posted by Graywolf on March 10, 2002 at 22:30:04:
Sal,
Check with a mortgage broker in your area and request all the information he can give you on ELOC. Once he has given you this information and check with a couple of other brokers just to see if they can offer any additional information. I could assure you if you come across a broker who knows how to effectively use an ELOC this will answer all your questions.
Good Luck
GRAYWOLF
Home equity loan - Posted by Sal
Posted by Sal on March 10, 2002 at 21:53:10:
Hi Everyone,
I have a question regarding home equity loans. I have equity in my current home, which is soon to become a rental property(I’m moving to another house and renting this one out). Once I move and rent this home, will I be able to borrow on the equity ??? Should I do it (establish an equity line of credit) BEFORE I move or will I still be able to borrow on the equity??
The reason I am asking this is that I will be purchasing rental properties in the future and I would like to use the equity in the down payment.
Thanks for your help!!
Re: Home equity loan - Posted by Ed Garcia
Posted by Ed Garcia on March 12, 2002 at 10:05:52:
Sal,
My suggestion is to put the ELOC on you house now. The reason is that you’ll get a higher LTV and a better rate on OO, and it should be easier to qualify now.
If you wait, you not only won’t get as good of a LTV, but the lender will only give you credit for 75% of the rent you receive on you old house. This could create a debt ratio problem.
Ed Garcia