Can You Use a HELOC to Buy a Second Home?
AuthorKelsey Heath. Date:
When financing a second home, you usually need a larger deposit and the income to support the debt payments. You also need to find the right financing, because many loans are only available for your primary residence. Most people consider turning to the equity of their current home. But can you use a HELOC to buy a second home? A HELOC lets you borrow against your home’s equity using a revolving line of credit—similar to how a credit card works. It’s flexible, and you only pay interest on what you use. That makes it an appealing choice for some buyers who want to purchase a second home. But using a HELOC isn’t without risk. You’re borrowing against your primary home, which means missed payments could put it at risk. Before proceeding, you must also understand the requirements and repayment terms. In this article, we’ll look at how a HELOC works … Continued
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