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,
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