Posted by Sharon on September 14, 2003 at 19:00:52:
on owner-occupied property. Those that will consider an equity loan on an investment property, will only do it on a second home.
Since the lender will “treat” the investment property as your second home for lending purposes, this means that any rental income from this property can not be used in determining your debt to income ratios. Additionally, since this is a “second home” and not your primary residence, the combined LTV will likely be limited to 75% - 80% of appraised value.
You can probably accomplish the same thing by doing a cash out refinance on your rental property.
Real Estate Investor
St. Louis, MO