I want to use some money from my HELOC as down payment for a multi-fam but am not sure if the bank will have a problem with me pulling from the HELOC. Has anyone experienced this?
@Britt Smith - The bank will not as long as it does not affect your DTI if you go the conventional route. Banks don't really care where you grab the money from and the HELOC bank does not keep track of what the funds are used for. The bank just cares that you have liquid funds upon closing on the property. I have pulled from a HELOC many times to buy a househack, investment properties, syndications and I have not been asked once by the bank what its for or received pushback from the bank providing the loan. At the end of the day, it's your equity. As long as you continue to make payments, no one asks questions.
Borrowered funds as acceptable for a down payment as long as they are from a secured asset and a HELOC would fall into that category. You just have to make sure the HELOC payment does not pose a DTI issue for the multi family purhcase.