How Soon Can We Request HELOC?
Our first mortgage payment on our first property is due tomorrow. It is interest only for 10 years. We bought below local value on a tip from Realtor /investor /friend. Will we have to wait for appreciation /change in market before requesting HELOC? Thanks a multimillion D
You can get a HELOC as soon as you own the property, if there is sufficient equity and your credit is good. A HELOC is based on appraised value rather than purchase price. You should be able to get 90% of appraised value minus whatever you already owe.
Chris
I assume you have an appraisal still from your recent purchase. Perhaps you can still use that one?
POC-L means Paid Outside of Closing- Lender. In other words the Lender paid for the appraisal- not common but not unheard of. This means you do not "own" the appraisal and cannot demand a copy- but you can nicely request a copy and you might get one if it was a small lender who will bother themselves with such a request to please a customer. Ask the mortgage broker you worked with. It could save you paying for another appraisal.
Chris
Quote:
On 2008-02-01 09:12, ypochris wrote:
POC-L means Paid Outside of Closing- Lender. In other words the Lender paid for the appraisal- not common but not unheard of. This means you do not "own" the appraisal and cannot demand a copy- but you can nicely request a copy and you might get one if it was a small lender who will bother themselves with such a request to please a customer. Ask the mortgage broker you worked with. It could save you paying for another appraisal.
Chris
I think that they have to give you a copy if you request it in writing (if you paid for it).
Point was- the lender paid for the appraisal.
Chris
Quote:
On 2008-02-01 12:02, ypochris wrote:
Point was- the lender paid for the appraisal.
Chris
Agreed, although my experience has been on th elast three, that the broker paid and they gave me a copy once I requested it in writing (free of charge).
Awesome, thanks Chris. Seriously appreciate your attention on this.
Another Q - Have folks successfully (with the proper equity & credit) taken a HELOC to fully fund a 2nd; investment or other property
Thanks a multimillion
Yes,
I use my HELOC as a source of funds for acquiring below market properties and rehabbing. The next step is refinancing the rehabbed property, pay back the HELOC, rent it out --then repeat--ad nauseum.
You would need the appraisal report to satisfy another lender. But then again if you get your heloc through BofA they may use the same appraisal, if you do it soon enough. I think different lenders place different expiration dates on appraisals.
pentagon federal C/U will not even run a full appraisal for HELOCs.
Heck, BofA does HELOCs.