Home Equity Line of Credit question..
07-22-2012 06:24 PM
My husband and I currently have a home and there is NO mortgage on it. The deed was transferred into our name from my inlaws. We want to build a new home on acreage in the next year. We are looking at possibly taking out a HELOC on our current home to use towards any down payment on the land or new home/land (found a lender who finances both together and they want 10% down) just in case we haven't saved up enough money by the time it's built/closed. We also plan to sell the current home to pay off any LOC we used and keep the difference. My questions are:
1. Is it wise to do a HELOC for down payment towards another home, especially a new one?
2. Do they use an appraiser for our current home for the HELOC or go by what the homes are selling for in our area or the appraisal district?
3. If we do get a HELOC (not using it until closing on the new property), do we get this before or after we are pre-approved for our construction loan? Our CC UTI is excellent btw.
My husbands FICO's are in the 760's and mine are in my sig below.
Thank you in advance!
Starting Score: Jan 2011: 517; March 2012: 620
Current Score: Ex 681 FairIsaac V2; TU 690 Classic04; Eq 642 Beacon5.0-All lender pull 8/13/12
Goal Score: 700
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