Financing down payment with HELOC? · The MHP Pros Mastermind

Financing down payment with HELOC?

I'm in a low cash position currently, but I've got a lot of untapped equity in rental properties. If I opened a HELOC on a home I could have around $160k available. My question is how best to utilize that.

1) If the owner was willing to owner finance until I could refinance the park, 160k gives me a lot of room for DP. This seems to be the ideal scenario

2) If owner is not willing to owner finance and I need to get a bank involved from the beginning, this seems trickier...I've run into lenders not being happy with any down payment money being borrowed in the SFH space...is this different in commercial? Should this be an open conversation I have with my banker about the DP funds being borrowed? I'm wondering if they would be ok as long as the DCR works out factoring in the amount I'll owe for the DP as well. It seems otherwise I'd need to pull out that money and pay interest on it while it sits in my bank for at least 3 months so I have seasoned proof of funds and bank statements.

What are y'alls thoughts on how best to leverage this? Thanks!

12 comments

Financing down payment with HELOC?