How to use a HELOC to purchase a second home

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How to use a HELOC to purchase a second home
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Are you considering a HELOC to fund the purchase of your second home? Find out how to do that here.

If you're in the market for a second home, you may be considering ways to finance the purchase. Between a down payment and closing costs, you'll typically need between $8,620 and $107,750 available to purchase the average home in the United States. And, the low end of that range assumes that you can purchase the home with 0% down, which is rare. But you could still have options, even if you don't have enough cash on hand to purchase your second home.

This process includes finding a lender, gathering all required documentation and waiting on an approval decision. During the application process, you'll also find out how much you can borrow with a HELOC. Each lender has a cap on the percentage of your equity you can borrow, but that amount is generally between 80% to 90% of the equity in your home.

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