I am trying to obtain a $100k HELOC on a $200k out-of-state investment property that I own free and clear to use as a down payment ​for a new home that I will live in. WF recently rejected my application. Some of their assumptions and math were a little screwy (for instance, they subtracted my HOA, taxes and other expenses on the property TWICE, giving me a net loss on the property). But their rejection also seems to be based in part on the fact that I told them I wanted to use the $100k as a down payment on a $350k home. So they assigned me additional debt based on that anticipated purchase. (Here again, they screwed up the calculation by assuming I wanted a $350k mortgage as opposed to a $250k). In any event, I have applied with a new lender who wants to know the purpose of the HELOC. Do I need to answer? Can I be vague about the money's purpose? Or should I tell them I'm seeking a lower-costing home? Any help is much appreciated!