Should I use Dad's equity or go for hard loan? - Posted by pete

Posted by Joseph Zimny on August 14, 2003 at 23:17:05:

Of course, we would need to know if you parents have good or bad credit. If their credit has no major hits on it in the recent past then my sense is that a home equity line of credit based on that property would be far cheaper than a hard money loan.

Make a list of potential lenders, begining with the current mortgage holder, and approach them with a plan for using the HELOC. I recently sent out a sample prospectus that I use to a bunch of people from this site who are seeking funding, as well. This prospectus might also help you obtain a cheaper HELOC. Good Luck!

Joe Zimny

Should I use Dad’s equity or go for hard loan? - Posted by pete

Posted by pete on August 14, 2003 at 13:35:17:

My parents have a house that is nearly paid off in Southern California. Would it be a good idea to get a loan from them or would a hard money loan make more sense? I have no idea what a loan on their equity would cost me…

Thanks,

Pete