Using HELOC on Primary Residence to Buy Future Home
I have a home equity line of credit against my primary residence. I am planning to move to a larger house and would like to use HELOC as a portion of my down payment. Are there any regulations limiting the use of HELOC? Will my new lender be fine? There are many articles out there about buying a second home using HELOC but not many about financing a primary residence using HELOC. Thanks!
Most Popular Reply
I would just ask the lender do they accept heloc funds as a down payment. The heloc will show up on your credit report as a mortgage so your new lender will consider that towards your DTI Ratio