| Posted by: kellybs May 1 2004, 09:43 PM |
I would like to take an equity line of credit on a property in NY. It's value is 500K and the remaining mort is 141K. The present income from is $2400 a month and the mortgage is $1349.00 a month. This leaves $1051.00 monthly. Since this is an income producing property, will I have trouble getting an equity line on it?? I'd like to get 75K
thanks for your consideration
M |
| Posted by: loanuniverse May 2 2004, 11:05 AM |
Kellybs:
You will not have trouble getting it as long as you can answer the following questions to the lenders satisfaction {these would be my questions, the lender can probably ask for other ones I have not thought of}
1- What do you need the money for?
2- Why do you need it to be in the form of a line of credit?
3- How are you going to repay this? The lender is going to want to see an amortization.
4- Any reason why this could not be treated as a refinance so that the new lender gets a first mortgage?
5- You say present income is $2,400, but that is gross right? What is the Net Operating Income?
6- How is your credit?
Lines of credit in income producing property are not that common. But I have seen a couple. You need to talk to a lender in your area and find out if they are willing to structure a loan that way.
Hope this helps.
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