|Equity Line on Rental Property|
|Posted by: Gary Gordon Mar 6 2003, 01:42 PM|
|My wife and I have a primary residence and a rental property. We wish to update the rentals interior and get a new roof. We owe about 246,000 on the rental and its appraissed vaule is over 415,000. We have been unsuccessful with securing an equity line on the rental. We do not have enough built up equity in our primary residence to make the repairs we want to make. We were told before we made our old home a rental that it would not be a problem pulling money out of it once it was made a rental , now it seems nobody wants to help us. Any suggesstions would be helpful. Thanks|
|Posted by: loanuniverse Mar 6 2003, 01:59 PM|
|Taking into consideration your present loan-to-value of 59.3% in the rental property, you might be able to get a new first mortgage on the rental property at 75% loan-to-value and be able to get about $65,250 out to do the repairs. the loan costs will reduce this amount by a couple of thousand . Of course, having the property rented and able to meet the debt service coverage will be crucial for you to get the loan.|
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You will need to compare the current financing in the rental property with the financing that you could get from a lender in your area.