If LTV is 66% then can a 200K HELOC be used as downpayment with a 400K loan as the balance?

How would the banks view this? Assume there is enough cash already in savings to make payments on the Home Equity Loan for 5 years.
In Buying Property - Asked by Larry K. - Jan 19, 2010
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Answer(s)

Chris S.
Broker/Agent
Coeur D'alene, ID

I don't think there is enough information provided in your question.
Are you using a HELOC on your home to purchase a commercial property? If so, I doubt your lender really cares where the cash comes for the downpayment on the comemrcial property. 99% of the time you will not be using the same lender for the home financing versus the commercial financing.
Do you have a commercial lender? I thought they had all blown away in the wind?

Jan 22, 2010
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Larry K.
Owner/Investor
Mahwah, NJ

Chris, yes I am planning on using equity from my home as 1/3 of the purchase price. So your answer that the lender won't care where the downpayment comes from is a good to hear. At this point I don't have a commercial lender. Just setting up a plan.
Thanks,
Larry

Jan 25, 2010
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Glory B.
Lender/Mortgage Broker
Lake Villa, IL

Hi Larry!
I am still here, after many years! Please stop by my web site at www.commercialfundingnow.com or call me (Glory) at 847-245-4600
You may not need to put 1/3 down! Typically, all we need from you is 10%!

Jan 28, 2010
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