If a borrower has closed a loan within the last 90 days, they could benefit from a Piggyback Delayed home equity line of credit (HELOC).
Immediately after the closing date, a borrower can take out a home equity line of credit using all documents that used with the first mortgage loan approval. The appraisal, the income documents, assets and whatever else used for the first loan approval is good enough for this delay HELOC.
A Piggyback Delayed HELOC:
- Keeps the process simple by using first mortgage documents
- Allows the borrower to take advantage of first mortgage improved pricing
- Lets borrower recoup funds after closing on their first mortgage
- Makes cash available for a home purchase, remodel, or other large expenses
- Provides the ability to pay down and reuse funds for up to ten years
For HELOCs up to 89.99%, the guidelines are the same for the delayed piggyback in comparison to a standard piggyback and standalone.
A Piggyback Delayed HELOC requires additional title insurance.