If I closed on a $720,000 property (my new primary residence) with a $140,000 down payment, how soon can I use equity (down payment) towards an investment property. So far ive heard theres a 6 month to a year cap on equity loans, then I heard I can get a line of credit as soon as I close without a problem...anybody have a clear answer? btw my credit score is 680...I've asked before haven't gotten a clear answer. I've also spoken to some mortgage brokers and they have given me conflicting answers.
2006-07-04 06:17:43 · 4 answers · asked by ? 2 in Business & Finance ➔ Renting & Real Estate
Right now, you currently have an 80% LTV (Loan To Value). You may access the 20% the INSTANT anyone is willing to make you a loan - period.
If THAT'S your only money to invest, it's gonna be a bit challenging for you for two reasons... (1) it sounds like your new loan is still NEW and has almost no seasoning; (2) Your credit score is "ok", but it ain't awesome. With more seasoning, your score will raise. You want 750+ to get in the land of "do what you want, when you want".
If you can get a HELOC, or anything else, go ahead. Just be carefull about what you buy. Hopefully, it'll debt service itself. Stay away from a negative situation, unless you're simply trying to shelter money.
Oh yeah, at 80% LTV, you'll need a lender willing to take you to 90% - 100%. Good luck, you'll need it. But then again, is that really a "smart" move. Hard to answer these types of questions on a board like this without knowing what you're trying to accomplish.
2006-07-04 06:36:54 · answer #1 · answered by kevc21 3 · 3⤊ 0⤋
It depends upon whether your are getting a home equity line of credit (heloc) or a refinance. It also depends upon the laws of your state. The best thing to do is have a reputable mortgage professional look at your loan documents and see what type of penalties or waiting period you have built into your current loan. That is the only way to know when you are able to pull out equity.
2006-07-04 06:24:28 · answer #2 · answered by pknutson_sws 5 · 0⤊ 0⤋
It doesnt sound like you have any money to be reinvesting for investment property. Hopefully your 720k property is your good investment. Check out daveramsey.com for responsible money handling.
2006-07-04 11:59:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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2006-07-04 06:21:31 · answer #4 · answered by tanu 2 · 0⤊ 0⤋