Home Equity Line of Credit ! Can you get a home equity line of credit on a property that you own, but do not live in?

Home Equity Line of Credit ! Can you get a home equity line of credit on a property that you own, but do not live in?

Great question!You can absolutely get a HELOC on a property you own but in which you do not live. In fact, most real estate holding companies do this on their rental properties to avoid judgement claims against the equity in their rental units. The rates are actually pretty much the same as if the HELOC was taken on your primary residence. Most banks add .5% (50 basis points) to your rate due to the extra risk of default on these types of properties. So for example, if your rate was 8.25% (the current prime rate), then your unoccupied property would have a rate of 8.75%.