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Loan on investment property

I own a house free & clear in Okla but live in TX. Do I try for a Heloc or a first mortgage. I rent the house out and when my current renter leaves there is some work I need to do but need to borrow the money from the house in order to do it. There are too many companies out there that I'm confused. I don't even know if it's possible since I don't live in the house, but would like some advice if it is possible... Thanks for any advice....
  • May 15 - Enid
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Answers (5)

I recommend that you look into a cash-out refinance. This will allow you to refinance and put a mortgage on your home. This will also allow you to free up some cash so you can use it towards your situation. If that sounds like a good option for you, then I suggest you pursue it by connecting with a loan officer. So the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • May 16
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The best options for you would be a cash out refinance, or a Home Equity Line of Credit (HELOC).   The rate on the cash out will be a fixed rate for a determined term, 15,20 or 30 years. Closing costs can range from $2000 to $5000, depending on your specific scenario.  Personally, I would recommend the HELOC..you apply one time, and you have unlimited access to the funds without having to re apply each time.. you have a "Draw" period, usually the first 10 years, where you can continue to write checks/withdraw funds up to your maximum limit.. After the draw period, you can no longer pull out funds, and it becomes a fully amortizing 20 year loan..   most all HELOC's are a variable rate, usually below current market rates, and the cost and fees associated with the HELOC are usually less than $1000. 

Feel free to reach out to me via my profile if you have any additional questions or concerns.  William J. Acres, Arizona's Mortgage Expert.

  • May 16
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Profile picture for RickyPowell
Just to add a little more information about HELOC's.  They are usually short term loans as well so it will depend on how quickly you are wanting to pay the loan off.  Are you planning on selling the property after fixing it up?  An advantage to a HELOC is they usually have low finance fee's.
 
  • May 16
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I agree with Jennifer.  Another option would be a Commercial Credit LIne (unsecured).  This is what I use to float cash on investments.  I prefer this route because it keeps any loans from being tied to any of my properties.   
  • May 15
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If you're taking cash out on an investment property, you'll want to look at a first mortgage.  Heloc's are typically done on Primary Residences--but the first mortgage on an investment property is typically a simple process.  I hope this helps!  Jennifer

  • May 15
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