Updated almost 7 years ago on .
Using HELOC to purchase second primary residence
We are looking to relocate to another city and state for more job opportunities. We have a mortgage on our current home with about $100,000 in equity. I want to take out a HELOC to purchase a short sale property in the new state to get something under market value. Once we close we sell current home, pay liens, have a little left, and move. My question is if we end up needing to take out a small mortgage, will the new lender calculate dti with the draw period payment on HELOC? Or the full repayment period payment in 10 yrs?