they have a 1st mortgage on the investment property and want to add a line of credit behind a 1st mortgage.
can you do that?
Thanks for visiting our site and great question. The investor may be able to get something called an investment property line of credit. There are generally two types of investment property lines of credit: one for a single property and one for a portfolio of properties. Generally, the LOC on a single property works like a HELOC where an investor draws funds from a set amount and only pays interest on the amount they use. The maximum that most lenders allow is 60% LTV meaning that you would need some substantial equity in your property and would need to meet the other lender’s guidelines such as credit score. Hope this information helps.
All the best,
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.