Financing With a Home Equity Line of Credit
The startup financing you need could be right at your doorstep.
If you're a homeowner, you've likely watched the value of your house grow rapidly in the past few years due to the sizzling real estate market. If you're looking for startup capital, all that equity can be even more enticing. You could sell your house, move to a cheaper home and start a business with the profit--or you could get a home equity line of credit to get the cash infusion you need to launch.
It can definitely work, says Linda Lirette, loan officer at America One Finance, a mortgage company based in Medina, Washington. The first step is determining how much capital you'll need in the first year or two. Next, decide which home equity option best fits your needs. There are many options, from refinancing to taking out a second mortgage to borrowing up to 100 percent of the appraised value of your home. She suggests consulting a mortgage broker to help you navigate the various programs available.
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