We offer Home Equity Lines of Credit, HELOCs in New Jersey, including options that allow investment properties, a financing option that many conventional lenders do not offer.
Below is a real-world scenario that highlights how a Non-QM HELOC in New Jersey can provide flexibility, liquidity, and long-term leverage for self-employed investors, as well as those who are not employed.
The Scenario
Our borrowers owned a 4-unit investment property in New Jersey and wanted to set up a home equity line of credit (HELOC) while keeping their existing first mortgage intact, which carried a favorable interest rate.
Their goals were clear:
- Use the HELOC proceeds as a down payment on another investment property
- Maintain flexibility to reuse the line of credit for future opportunities
- Avoid refinancing the first mortgage and increasing their overall cost of capital
Borrower profile:
- FICO score: 748
- CLTV: 70% (calculated using an AVM)
- Employment: Self-employed
- DTI using tax returns: 61%
The Non-QM HELOC Solution in New Jersey
Instead of relying solely on tax returns, we structured a Non-QM HELOC in New Jersey that allowed the borrower to qualify using 12 months of bank statements. This alternative income documentation more accurately reflected the borrower’s true cash flow.
As a result:
- The borrower’s DTI was reduced to 46%
- They secured the funds needed for their next investment purchase
- They preserved additional availability in their line of credit for future draws
HELOC Program Highlights (New Jersey)
Our investment property HELOCs in New Jersey offer very favorable terms, including:
- Second liens may use AVM valuations
- First liens require a full appraisal
- 5-year draw period with a 30-year total maturity
- Interest-only payments during the draw period
- Rates based on WSJ Prime + margin
- Investment property CLTV up to 75%
If you own an investment property and are exploring HELOC options in New Jersey, our team can help evaluate your scenario and structure a solution that aligns with your goals.
Contact us to discuss your HELOC options.
