Hello everybody. I'm looking for, ideally, a line of credit. This is for both personal use, as well as to help kick start my 2nd business and I'm 100% OK personally signing for it.

Business #1 is still in growth mode, but (now) profitable. I own my home (bought it before starting my business), and only owe ~$47k on it. The current OpenDoor offers are ~$240-250k, depending on the week. I applied for a HELOC thru PNC, and they offered me $19k.... I laughed at them, and told them to fuck off. I have an 800+ credit score.

I know it's harder to get financing when you're self employed, but $19k is laughable when I easily have $180-$200k in equity in my house. What kind of other options do I have?

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Nayelia t1_j2cnga2 wrote on December 31, 2022 at 6:41 AM

Banks don't like to take 2nd lien on a property these days, which is why they are offering you a much smaller line than what you have in equity. You can either try asking your existing mortgage lender for a line - they would be more open to it since they own your first lien too - or look into a cash out refinancing. That's getting a new mortgage with a higher amount than what you currently owe and you can take the extra cash.

kendogg OP t1_j2cr9v2 wrote on December 31, 2022 at 7:27 AM

Current mortgage lender does not do HELOC's. Also, current mortgage is at 3.5%. I'm not screwing that up lol.

Nayelia t1_j2cso6h wrote on December 31, 2022 at 7:44 AM

Well, if you were to get an unsecured personal loan, CC cash advance or 2nd lien HELOC, you would be looking at much higher rates than a traditional mortgage anyway. You also mentioned you wanted to use the money to start a business, if you already have something going on that front, you can look into a SBA loan. Given what you said, you don't have a lot of options.

RolledUpHundo t1_j2d1db1 wrote on December 31, 2022 at 9:40 AM

A smart business owner would never take out a loan or line of credit for combined personal and business use. Why would you want to start an entirely new business when your first one is just now breaking even? How many employees do you have already?

souvidesuperfan t1_j2d03qt wrote on December 31, 2022 at 9:23 AM

The only major bank I know of that offers a personal, unsecured line of credit is US Bank. I used to have a 25k line there.

You probably aren't getting close to 50 or 100 unless you remortgage the house.

KoastPhire t1_j2cmgcy wrote on December 31, 2022 at 6:30 AM

You want unsecured credit line? How much are you looking for?

kendogg OP t1_j2cmiyv wrote on December 31, 2022 at 6:31 AM

I'd prefer the wiggle room of 100k, but $30-$50k would accomplish my goals I think.

KoastPhire t1_j2cmlys wrote on December 31, 2022 at 6:32 AM

Yea, you're need to mortgage your house. No one is giving you 50-100k unsecured, short of pooling 3-5 cash advances on CC.