@Eric H. yes, using a HELOC for your down payment should be acceptable to nearly every bank out there without seasoning it for 2 months. Very large banks may have a problem with it and if they do then go to another bank. Smaller to mid-sized banks will be more flexible with it.
One of the common areas of concern for HELOCs I see out there is the 10 year maturity date and the adjustable rate. Since HELOCs have adjustable rates they will often catch people off guard when they adjust. With rates moving higher, it is likely that your rate will increase in the future. The 10 year maturity date is where the HELOC will modify into a different product all together. Meaning after opening the HELOC for 10 years it will cease to be a HELOC. It will "mature" into a 20 year fixed rate mortgage that you can no longer draw on. And when is matures the rate will increase. I've seen typical numbers of 1%-2% higher than your current rate.
HELOCs are a great product but they are not designed to be a long term loan. Normally people use them and pay them back. They use them again and so forth. I'm sure you have a plan to pay it back but thought I would post this in case anyone else is researching and came across this subject. Thanks!
hey @Andrew Postell im also curious as i am in the same position and would like to use a heloc from someone else who will give me access to funds but i have no money, poor credit and plan to refinance asap.
1.) What is the lowest downpayment I can make in my situation??
2.) Would I be able to refi within 3 months in this case? Assuming I have 75% LTV
I plan to pay back loan right away