HELOC on primary residence

HELOC on primary residence

Billings, MT · Member since 2021 · 51 posts · 11 votes

Hello all! I have a question regarding an open HELOC on my primary residence with an outstanding balance. I am considering buying a new home to be my primary residence but would like to keep the current one as a LTR. Does anyone know how that would effect the open HELOC? Would I be required to pay it off because the house would now be an "investment property" and most banks don't like to do HELOCs on those? I'm planning on reaching out to my loan officer as well. Just curious people's thoughts or if they have delt with this before. Thanks!

1Reply
31 views

Most Popular Reply

Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
3y

We had a similar situation with our old house.  We called our lender and they just kept it open. 

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    We had a similar situation with our old house.  We called our lender and they just kept it open. 

  • Billings, MT · Member since 2021 · 51 posts · 11 votes
    3y

    @Kerry Baird thanks for sharing! I'm hoping that's what could be done!

  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    People move. Lenders know this. You can keep your current HELOC open. I'm sure your MLO will say the same.

  • Billings, MT · Member since 2021 · 51 posts · 11 votes
    3y

    @Scott E. Thanks for the input! Seems like that should be ok!

  • Rental Property Investor · MD · Member since 2018 · 62 posts · 29 votes
    3y

    As long as you're paying regularly, I don't see the issue with them keeping it open.  When you call to ask, don't mention it will be used as an LTR.  2nd home would probably sound better to the lender. 

  • Billings, MT · Member since 2021 · 51 posts · 11 votes
    3y

    @Leonard Rybak good point! Thanks!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.