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HELOC on FHA Loan

Posted on: 17th Mar, 2011 02:06 pm
Hi,

I am buying a house using FHA loan. Based on the assessment, there is close to 100K equity in it. After purchase of the house, is it possible to obtain home equity line of credit on this home?? I heard that we cannot obtain HELOC if we puchase a house with FHA. Is this true?

Any suggestions for obtaining HELOC under these circumstances will be greatly appreciated.

Thanks!
Hi lokeshwk!

Welcome to forums!

You can obtain a home equity line of credit if there is equity in your property. It will be better if you could use a FHA home equity line of credit if you want to cash in the equity in the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 17th Mar, 2011 09:19 pm
Yes, like I mentioned, there is a lot equity.

I forgot to provide onw more detail - for this FHA loan, I am putting 3.5% downpayment maybe a little more but by NO means I will be putting down anything close to 20%.

When I asked my mortgage broker about home improvement loans - 203K loan Vs. HELOC, he said that 203K loan is the only way I can get some money for improvement while buying the house but HELOC will not available because I put down less than 20% (inspite of having equity).

Does putting less than 20% down for a home disqualify me for obtaining HELOC???
Posted on: 18th Mar, 2011 07:46 am
fha does not care if get a second mortgage after their first mortgage.
Posted on: 18th Mar, 2011 04:49 pm
jveenstra,

Can you please elaborate on your response?

Thanks
Posted on: 20th Mar, 2011 08:17 am
I do not know what else to say.

You asked if you could get a HELOC if you buy a house with an FHA mortgage.

You can do that as long as you qualify for the second mortgage HELOC.

Whta else do you want me to say?
Posted on: 21st Mar, 2011 07:49 am
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