Posted by Matt-CA on July 02, 2008 at 10:42:12:
I’ve thought about it. Although my strategy to get started in investing is to buy distressed properties way below market value with cash (HELOC). Fix, then refi for 75/80% of the appraised value (pay off heloc) and rent out or sell. I don’t think this will work with a HEIL: They seem to have more costs than a HELOC and I really would need the revolving option.
That said, I’m a new and just going off what I ‘read’ can work as a way to get started.
HELOC Reported as Installment - Posted by Matt - CA
Posted by Matt - CA on June 29, 2008 at 11:37:04:
Howdy all -
Can anyone recommend a decent heloc program: One that is reported to credit bureaus as an installment credit instead of revolving credit.
I’ve avoided helocs up until now to keep my credit score up. But I am considering opening a heloc as a source of funds for all cash deals.
~Matt
Re: HELOC Reported as Installment - Posted by River City
Posted by River City on July 01, 2008 at 05:06:47:
When creditors report to the credit bureaus, they generally report using a system called “Metro 2” via “e-Oscar.” Metro 2 has codes set up for each type of loan being reported. If lenders do not report loans accurately, they would have to answer not only to the credit bureaus, but also to the Federal Trade Commission. HELOCs must be reported accurately. Lenders have found that borrowers want loans and ask them to do things that are not legal, but when hard times hit, the borrowers end up trying to sue the lenders for doing just what they ask for. People complain on a daily basis about inaccurate credit reporting, and here you are wanting them to do just that.
Re: HELOC Reported as Installment - Posted by Matt CA
Posted by Matt CA on July 01, 2008 at 10:30:00:
Upon more research it does make sense that a heloc is reported as a revolving account since that what it is (I’m new at this)
I am just going off of advice I’m reading in blogs, blurbs on investing shows, etc… The general message I’ve come across is; “Try to find a heloc that is reported as an installment account. Some banks do report helocs as installment accounts and that is better for your credit.”
Re: HELOC Reported as Installment - Posted by River City
Posted by River City on July 02, 2008 at 06:43:16:
Matt, you could try to get a home equity loan that is a closed end loan (installment loan). It is amortized for a certain period of time and the payments are set for the life of the loan. There is no “credit limit,” as all of the money is given to you at closing. Since the balance does not replenish as payments are made, it is not a revolving line of credit, like a HELOC. You know when you go into the loan on what date the final payment will be made.