New Home Purchase options

[arnolds]

I'm a long time lurker, first time poster!!!

 

Signed docs today for a new construction house here in So Cal. We will walk thru next week and get keys.

 

Two loans thru Countrywide

80% 10 year fixed/Arm

15% Heloc

 

I have about 30k in expenses (new furniture, etc) that I am planning to use on the new house. I have the funds on hand but I am looking to refi the heloc + 30K and not use my cash. I'd like to use this cash to purchase other properties. The street value (what a similar house is selling in the neighborhood) of my new house is prob. about 125K higher than my purchase price.

 

I've talked to my Own bank (Union Bank of Ca) and they said that I should try to refi the Heloc +30k through them. This will be contingent that the house will appraise for 100K above the purchase price.

 

Anybody do a similar transaction? Any other options ?

 

Thanks in Advance!

[willtygart]

I hate those CW heloc purchase combos!!!!!!!!!!!!!!! As far`as the value...for most every lender what you paid is what it is werth so if yer bank will up the heloc and let you use new value I'd do it......I just dont know about puting it on a heloc though, buying stuff for the home..........and you are in a 10/1 arm.....are you planning on moving? The rates for a fixed were not that far off.....and when the rates rise....yer "whatever" over prime on the heloc will go higher...and in ten years you will have to refi the loan unless you have left.......I am just really confused here.........I dont think that I know your whole situation but I just REALLY dont like that combo for some reason nore do I like the heloc idea for purchasing "stuff" unless you plan on turning the house within a few years. Please provide more info :?

[arnolds]

Thanks for the reply.

 

Yes, we will turn the house as soon as we think we can realize 250k in potential profits. A house (built 6 mos earlier) exactly like our house just sold on the market for $680K. Our purchase price is 506K. I think the house can appraise for about 620K. My goal is to preserve cash at the moment since we have plans to buy a couple more properties (duplexes) as rental units.