Did you know that if your have a client that owned their property free and clear and then took out a Home Equity Line of Credit (HELOC) we as lenders could not pay off that loan with a new first mortgage from the GSE's?
So you have a parent that wants to do a cash out refinance to provide their child down payment help and they could not borrow against the equity in thier own home!
Not Any More! We can now pay off a HELOC in first position with a new loan!
This may not seem like a big deal to most Realtors but you would be surprised how often it came up. I have had wealthy clients that put a HELOC in place just as a safety valve and had to subordinate them which is a pain, or close them so they could get a new loan.
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