Applying for a HELOC

[Holly Hudson]

I am trying to get a HELOC on our home. At 85% LTV they say there is $158,000 we could get. But they are asking what the funds will be used for. Searching the web I've read that banks want you to use it on the primary home, the one the heloc is on, to update it and increase the value. Other reasons were college and credit card debt. I was thinking about using it to rehab an investment property, about $18,000, we just bought and save access to the rest for reserves should this current economical state continue for many months.

Has anyone had experience with this or know what the banks are looking for? This will be our first HELOC.

Thank you for your advice and knowledge

Holly Hudson