Will a HELOC affect me getting a conventional loan?

Question

Hello all,

I am in the process of getting a duplex/house hack that needs repairs. My mother has offered me to sign on to her HELOC at a 4% rate to fund the repairs. I will not owe anything on this line of credit until I actually pull money out for the repairs. Will this disrupt my my chances of getting a conventional loan for the duplex? I already have a high credit score, but does it create a problem with my debt to income?

Carson Wilcox · Answer

I use a heloc on my current residence to fund downs and rehab $ and holding costs. as long as it is low balance/ empty when you go to finance... it isnt a big deal. They dont look at it like you have $250k in open empty credit cards... talk to your broker about the best way to manage things... they know best what sells and what doesnt at underwriting.

Harjeet Bhatti · Answer

@Mikael Lickteig As long as you can provide statement showing 0 balance, you should be good unless your lender has some kind of overlays.

Will a HELOC affect me getting a conventional loan?

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