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Profile picture for debu11

Buying a home using a Home equity line

if your LTV is 50~60% (down payment was 40%), your credit is over 780, can you take out a home equity line to purchase the property instead of a conventional mortgage?
  • June 06 2010 - Columbus
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Answers (5)

It may be better with a short term arm (1 to 10 years). You have a very low fixed rate for the term of the ARM. .... Happy funding, Rudi

  • June 07 2010
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Profile picture for Mr Caveat
to me this sounds  substantially riskier than an option arm... any particular reason?
  • June 07 2010
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What type of property are you looking at purchasing?  It would depend on the cost of that property and if you were wanting to pay cash or just use your home equity line for a down payment.  If you send me a quick message about what you are looking at I will be happy to get you in touch with someone here locally that could help you with your specific situation on the loan aspect.  Are you already working with a real estate agent on the purchase/sale?  I look forward to hearing from you.
  • June 07 2010
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The requirements will depend on your financial institution guidelines but you seem to meet most guidelines under your scenario above.
  • June 06 2010
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Yes, you could do that with even less down. Remember that loan will float with the Prime rate or if based on a 1 month Libor index, it too will move up. My guess is an average rate of aprx 6.5% over 10 years. If you will only have the loan 5-7 years take a 5 yr Arm instead. 
  • June 06 2010
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