PLOC App Spree

[iced]

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@Citylights18 wrote:

Update 9/22:

-SFCU is wrapping up the HELOC. It appears they are going to try to push 50k through underwriting by the end of the week, which is 5k more than initially so I feel like it was worth the hassle when I have 20 years to be able to use the line. I have to keep it for at least 3 or I pay closing costs.

-Picked up a prequalification letter from a lender for a specific property I'm interested in. Oddly the challenge is getting my cash back relator to show me it since they have so much demand they are blowing off communications. Though I can be a little patient because I don't have the HELOC money in hand.

SFCU HELOC 45,000 (New Counter-offer from bank of 50,000)

SFCU PLOC 10,000 (UW permitting either 10k on CC or PLOC)

I verified my 5/24 with Chase. That covers of course their core personal and business cards but also all of their travel cards. Seriously considering picking up a couple more travel cards. JetBlue by Barclay's is one way around the personal card limitation of Chase since I could move my points there. Delta by AMEX completes a nice redemption loop with my MR points. The question is would I be smart to try to get in under the radar with some more personal cards now or garden to bring up my average account length? Should I forget the personal and aim squarely for the business cards? This is my next great debate.

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I'm confused -- are you using a HELOC for cash for a down payment? And the lender is ok with that? Seems super risky as you'd then be carrying two mortgages (unless home 1 is paid off) plus a repayment on a loan, no?

Maybe I just don't understand how HELOCs work.

[Citylights18]

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@iced wrote:

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@Citylights18 wrote:

Update 9/22:

-SFCU is wrapping up the HELOC. It appears they are going to try to push 50k through underwriting by the end of the week, which is 5k more than initially so I feel like it was worth the hassle when I have 20 years to be able to use the line. I have to keep it for at least 3 or I pay closing costs.

-Picked up a prequalification letter from a lender for a specific property I'm interested in. Oddly the challenge is getting my cash back relator to show me it since they have so much demand they are blowing off communications. Though I can be a little patient because I don't have the HELOC money in hand.

SFCU HELOC 45,000 (New Counter-offer from bank of 50,000)

SFCU PLOC 10,000 (UW permitting either 10k on CC or PLOC)

I verified my 5/24 with Chase. That covers of course their core personal and business cards but also all of their travel cards. Seriously considering picking up a couple more travel cards. JetBlue by Barclay's is one way around the personal card limitation of Chase since I could move my points there. Delta by AMEX completes a nice redemption loop with my MR points. The question is would I be smart to try to get in under the radar with some more personal cards now or garden to bring up my average account length? Should I forget the personal and aim squarely for the business cards? This is my next great debate.

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I'm confused -- are you using a HELOC for cash for a down payment? And the lender is ok with that? Seems super risky as you'd then be carrying two mortgages (unless home 1 is paid off) plus a repayment on a loan, no?

Maybe I just don't understand how HELOCs work.

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Its all about the DTI as to what a lender will allow you to do.

Instead of pulling the down payment it from semi-liquid sources (PLOCs I'd put semi-liquid category) you can write one big check from the HELOC to pay for the DP. Then if you hold the place as an investment property you can write off the HELOC as you can with the mortgage as an expense.

So if the HELOC payment is say $700 a month at 3.59 interest since you'll write off the full amount (principal and interest) as an expense its essentially a free loan. A free loan which you can use over and over again for the life of the HELOC.

[iced]

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@Citylights18 wrote:

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Its all about the DTI as to what a lender will allow you to do.

Instead of pulling the down payment it from semi-liquid sources (PLOCs I'd put semi-liquid category) you can write one big check from the HELOC to pay for the DP. Then if you hold the place as an investment property you can write off the HELOC as you can with the mortgage as an expense.

So if the HELOC payment is say $700 a month at 3.59 interest since you'll write off the full amount (principal and interest) as an expense its essentially a free loan. A free loan which you can use over and over again for the life of the HELOC.

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This is only applicable if you're a landlord and are using the funds to buy more rental properties, at least until the the loophole gets closed.

[Citylights18]

Update 10/13:

-HELOC is finally approved. Loan officer quit a few weeks ago and the process. Ended up with a solid 50k after countering the original offer of 46k. The daily withdraw limit is 10k through direct deposit and 7-10 business days on the checks. A little more work to do to get the money but plenty of enough time in advance of a close. 

-Taken a look at a few properties in person. At the end of the day it seems like going for a lower priced property is worth it over trying to pay up for more luxury.  Lower and renovate it the way you want it (think dream kitchen here). Looking to low ball a house with my cash back realtor.

-Sitting at an average Fico 8 of 778 (on 22 HPs) with my new PLOCs already reporting. The prediction the spree would obliviate my credit turned out to be false. I may slide another 5 points once my HELOC reports but I think 740+ will remain intact.

SFCU PLOC 10,000 (10k on CC or PLOC until 10/21)

Debating whether to just grab the 10k PLOC offer since Chase has constricted cash advance down to nil and if I want to move to Signature for my checking at some point. They are online only which I think calls usability into question. Would top off my TCL above 400k if I elected to pick it up.

[iced]

Is this for a flip? If so, does it really make sense to put a dream kitchen in a lower priced home/market? I can't imagine too many buyers in that range are going to spring the extra cash for custom cabinets, quartz counters, and Wolf/Sub-Zero appliances.

If it's for you and it's your forever home, knock yourself out I say.

[Citylights18]

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@iced wrote:

Is this for a flip? If so, does it really make sense to put a dream kitchen in a lower priced home/market? I can't imagine too many buyers in that range are going to spring the extra cash for custom cabinets, quartz counters, and Wolf/Sub-Zero appliances.

If it's for you and it's your forever home, knock yourself out I say.

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The house I'm looking at completely turn key is worth about 1.25 million. It's listing for 590k but needs a lot of work. It doesn't have central A/C, finished basement or even a dishwasher in the kitchen. Floors are in pretty good shape. 5 BD and 2 Bath. Upstairs bath is in good condition, downstairs bath needs remediation. I would probably try to kill one of the BDs and put in a master bath and a WiC. Kitchen is a galley with 20 y/o cabinets and appliances. Decent short term shape.

Easily it could use 100k. I'm not sure how much I want to drop on it. Tax assessed value is 250k so there is some misalignment as to where its listed. I am going to see if I can low ball it down some more since nobody is placing an offer on it.

[Citylights18]

Update 10/22:

-PLOC spree is finally complete. I decided to accept the SFCU PLOC since I already pulled my credit for it and I can connect it to my other accounts with Signature. Accepting the 10k PLOC tops off my TCL above 400k which is 100k above my minimum target of the spree. Also picked up "high yield" chicking with Signature (1.50 APY) which is not bad at all in this rate environment.

-One thing I've done with this PLOC spree is totally blitz through all the credit line products to see what is even possible. Quite a few products have dried up completely. At this point I feel like its hard to justify any more credit with such a high TCL and I like the idea of leaving products on the table in case something shuts down that I'd have a few viable alternatives.

-In retrospect it might have been more utilitarian to just go for credit cards w/o cash advance fees and/or elevated rates. Easier access to money than having the LOCs. Probably less unsettling to Chase since they aren't credit cards but maybe not quite the best strategy.

[RickNATL]

@azpro what was req'd for your PLOC (POI, etc.)?

[azpro]

@RickNATL 2 Years of W2, two recent paystubs, they may ask for tax returns as well.

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@RickNATL wrote:

@azpro what was req'd for your PLOC (POI, etc.)?

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