I'm closing on a HELOC and want to use my VA Loan also

3 Replies

Hello all,

I have a couple questions about REI in relation to the topic. I own my house free and clear and was just approved for a HELOC. The plan is to move out of the current home and house hack using my VA Loan. Then, I'd use the HELOC to purchase others using conventional loan(s). I'm closing soon on the HELOC and I don't have the pre-approval for the VA loan.

How would the HELOC affect the VA Loan? Will the full value of the HELOC be included in my DTI?

The answers will determine my next move so, thanks in advance for any feeedback.

@Jabari Jones , my question is: would the (future) rent coming in from your current home cover the the HELOC repayments (and other property expenses) once you draw out the full amount?

ie. Don't include the income that you'd be hoping to get out of the HELOC.

If the answer is yes, then that means your DTI should not be unduly affected.

Then, the added income from wisely investing your HELOC would be the bonus!

[But, if the answer is no, then that HELOC will likely adversely affect your DTI!]

Sounds like a plan. Thank you for your service. All the best...

@Jabari Jones ,

The HELOC will not impact your DTI until you draw from it. It is like a credit card in that, if you have a zero balance then it does not count against you. Once you take money out, though, or even if you plan to use the HELOC for a down payment, then the lender will factor what your payment to the HELOC will be in determining your DTI.

@Edward B. @Brent Coombs Thanks for clearing that up. I spoke with my lender today and she confirmed. With that, I'll be looking to get my pre approval on my VA Loan and moving forward in this journey! Thanks again!!

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