What’s the highest DTI banks will allow on HELOC

1 Reply

I'm thinking about taking out a Heloc on my primary property. I have over 600k in equity and want to invest in some rental properties with the funds.

Anyone know the max DTI banks will allow for Heloc right now? I'm sitting at 39% which I think is high but I've heard some banks will allow up to 54.99% DTI and some only 45% in which I won't be able to get a large line out on my house. How can I get the most out of the equity just sitting inside my home? I just purchased November of 2017 so I can't rent out my unit just yet but I do rent out my front unit already (duplex).

To my knowledge, there isn't an industry standard for this. I used to underwrite HELOC's and we had a 43% DTI requirement. I would recommend shopping around to local financial institutions and confirm their DTI requirements.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you