Can a home equity loan be used to purchase investment property? The answer is yes. You can use the proceeds from a home equity line of credit to purchase investment property.
Once you obtain this line of credit on your home, the bank does not monitor what you use the money for. You can use it for entertainment, to pay off credit cards; you can use it for anything you like. The downside of it is, you put a mortgage against your home. So if you do not repay it, your home is at risk.
So yes, you can use the proceeds from your home equity line of credit to buy investment property, or for that matter, to take your bride out to dinner.
If you have any questions about a home equity line of credit, give me a call at 727-847-2288.