Fishers, IN · Member since 2017 · 4 posts · 2 votes
I have a second home that is paid-in-full. I have a HELOC for $250,000, with a $0 balance. I am considering applying for a loan for a new purchase (30Year, Primary residence) in the amount of $450-650k. Will the HELOC hurt my DTI in any way, assuming I have a $0 balance before they pull my credit? Do they ever require one to close the line, before the new mortgage approval? Searched, but never found the exact answer for this scenario? Thx! Ryan
Realtor · Frederick, MD · Member since 2019 · 112 posts · 63 votes
6y
Since it is considered a line of credit instead of an equity loan, a $0 balance will show the same way any credit debt would, at $0. So your DTI should not be impacted by the amount available on the line of credit. If you need a lender in Indiana, I can recommend one via DM. I invest in Indianapolis so I have one I prefer.