HELOC usage enforcement
I am considering a HELOC on a rental property, but I was just told, "If the use of funds is to purchase another property, the loan will be declined for business use, if the purpose of funds is for reserves to fix up rental properties as needed, then we can do the loan."
Once I have a HELOC, how can they enforce what it is used for? I have had many HELOCs in the past and never heard this.