Move forward with HELOC if less than %80 LTV?

[Nathan Toothaker]

I am starting out in REI and part of my plan to get started is to use a HELOC on my personal property. When I first applied I estimated my home value at 390k which would give me a line of credit of 62k at an 80% loan to value ratio. (390k x 0.8 - mortgage balance)

The appraisal came back at 420k which great news however when I requested that the limit be moved up to 80% LTV of the appraisal amount (86k) I was told that the loan commitment had already expired so in order to get up to 86k it would need to be a new application and also I would not get the promotional interest rate of 1.99% for the first year. I have the green light to close on the 62k if I choose.

I have been working on the HELOC for almost 2 months now and am really itching to get my first property. The 62k is enough me to get started and would cover a down payment and some light-medium rehab but now that I know there is addition equity possible I would like to have access to it.

Should I reapply for the maximum amount and delay things another few weeks or just move forward and be happy that I am getting the amount I originally hoped for?

Many thanks in advance!