You're taking out the HELOC so that your real estate investing business has the liquidity to handle anything that might come up. Not a lie or fraud, and also not over-disclosing.
@Raam W. , assigning "additional debt based on that anticipated purchase" - makes sense to me. Sure, it's the mortgage Lender that you'd be borrowing the additional $250k from who should make that call, but, the same questions will be asked!
ie. Can you well afford to repay an ELOC and an extra mortgage, with no additional income?
Welcome to BP. All the best...
@Raam W. Just a thought - in theory it shouldn't really hurt you to disclose your intended purchase. Even if they do factor in another $250,000 of debt for a new house, you should have sufficient income to cover this payment. If you don't have enough income, how will you qualify for that $250,000 when it's time? Of course this depends on them inputting the correct numbers.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.