Is an FLH right for your clients?

  • Is an FLH right for your clients?

    Posted by FLH Team on August 11, 2024 at 12:38 am

    First Lien HELOC (FLH) has been gaining traction as a versatile financial tool, but its suitability varies based on individual financial situations and objectives. As professionals who advise or interact with clients on financial matters, it’s crucial to understand the intricacies of FLHs. This forum serves as a platform for discussing experiences, addressing concerns, and evaluating scenarios where an FLH might be the optimal choice. Whether you’ve already incorporated FLHs into your recommendations or are just starting to consider their potential advantages and drawbacks, let’s delve deeper together and ensure we’re providing the best advice for our clients’ unique needs.

    Daniel Lao replied 3 months ago 4 Members · 3 Replies
  • 3 Replies
  • Janice Sousa

    Member
    February 22, 2024 at 8:37 pm

    Hey experts! I’m a new agent and been thinking a lot about different financing options for clients who are looking to invest in real estate. Have you ever considered whether a First Lien HELOC might be a good fit for your clients? I mean, from a real estate agent’s perspective, it seems like it could offer some pretty interesting opportunities. But then again, I’m curious to know what your thoughts are on whether it’s the right move for your clients. Have you had any experience with First Lien HELOCs, or do you know anyone who has? Let’s chat about whether it’s something worth exploring further for potential clients!

  • Dakota Harris

    Member
    February 22, 2024 at 9:35 pm

    FHL can be a pretty intriguing option for some clients, especially if they’re looking to tap into the equity in their home while still keeping their first mortgage intact.

    One of the big advantages is that it offers flexibility. Clients can access funds as needed, similar to a traditional HELOC, but because it’s in first lien position, it often comes with lower interest rates compared to second lien HELOCs or other forms of financing.

    Plus, it can be a useful tool for clients who are looking to consolidate debt, fund home improvements, or even finance investments. And as real estate agents, being able to offer our clients creative financing options like this can really set us apart in the market.

    That said, there are definitely some factors to consider. For instance, clients need to have sufficient equity in their home to qualify, and they’ll need to stay on top of their payments to avoid any potential foreclosure risks.

    Overall, I think it’s worth exploring with clients who are in the right financial position and have clear goals in mind. It might not be the right fit for everyone, but for those who can benefit from it, a First Lien HELOC could be a game-changer.

  • Daniel Lao

    Member
    February 22, 2024 at 9:42 pm

    Also looking to ask this question. Do you guys personally know someone who have this fist lien heloc?

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