HELOC's impact on future loans

[Lindsey Matejak]

I am in the process of looking for my second multi-unit property. I currently own a 3 unit with around $350k in equity. I am living in one of the units, but am ready to move out and again house hack in the next 3-4 unit property I purchase. Before I move out, I want to get a HELOC on the equity I have in my current property to eventually use for renovations of the new property.

If I do so, how will this HELOC (unused) impact my ability to get a conventional loan for the next property? I am already having some trouble getting past the DTI benchmark on the 3-4 units I've considered--will the HELOC make it even more impossible to clear that hurdle? Suggestions welcome!

[Stephanie Medellin]

@Lindsey Matejak The payment reporting on your credit report is what will be used in your DTI calculations. If you are not using the majority of the line, or not using the line at all, it won't count against you.