If you are a real estate investor with properties in California, you may be looking for ways to access the equity in your rental properties without refinancing out of your current low-interest loans. In this case, a no doc line of credit may be just what you need.
What is a No Doc Line of Credit?
A no doc line of credit is a loan that is based on the equity in your rental property and your credit score, without requiring income verification or other documentation of your financial situation. This type of loan is ideal for investors who have significant equity in their rental properties but do not want to refinance their current loans.
In California, there is a private mortgage fund that offers a true HELOC (Home Equity Line of Credit) for investment properties. With this loan, you only pay interest on the amount that is disbursed, which means that you can access your equity without taking on additional debt.
How Does a No Doc Line of Credit Work?
To qualify for a no doc line of credit, you will need to have a good credit score and enough equity in your rental property to support the loan. The amount of equity required will depend on the combined loan-to-value (CLTV) ratio that is acceptable to the lender.
Once you are approved for the loan, you will receive a line of credit that you can draw on as needed. You will only pay interest on the amount that you borrow, and you can use the funds for any purpose, including purchasing additional investment properties.
Why Choose a No Doc Line of Credit?
A no doc line of credit can be a great option for real estate investors who want to access the equity in their rental properties without refinancing their current loans. This type of loan is fast and easy to obtain, and it does not require extensive documentation of your financial situation.
Additionally, a true HELOC is a unique product that is not widely available. While there are some second mortgages that allow you to access your equity, these loans often have higher interest rates and require more documentation.
Conclusion
If you are a real estate investor in California and you have significant equity in your rental properties, a no doc line of credit may be the perfect solution for accessing your funds. With this loan, you can access your equity without refinancing your current loans or taking on additional debt. Contact a lender today to learn more about this unique product and how it can benefit your investment portfolio.