I’ve done some of my own calculations but since this is unique and the money wouldn’t pay down the mortgage I’m requesting some additional analysis.

They also want to identify a secondary source of repayment if the first one doesn’t pan out.

The challenge that many borrowers run into when looking for larger equity lines with limits  of $250k+ is that they typically require full income verification (not always bank statement and DSCR exist) with lower DTI ratios (43-50%) however although the repayment scheduled is based off a simple interest only payment, (usually a 30 year amortization schedule with the initial draw period of 5-10 years) the qualifying rate is based off of the converted twenty year amortization schedule (240 equal installments) of the payback period.

There is usually no formal seasoning requirement, but there does need to be a clear paper trail and acceptable repayment terms. 

Where I can purchase properties all cash and utilize delayed financing to re-pay them immediately and rinse and repeat. 

Bringing in equity reduces leverage and gives you breathing room if costs increase or timelines prevent the repayment of the equity line.  

I’ve been seeing a lot of confusion around this topic, so I wanted to ask the community for real-world experiences.For borrowers in Maryland who are currently in an active Chapter 13 repayment plan — has anyone here successfully qualified for an FHA loan before discharge?

I would also recommend documenting the repayment schedule for the loan you received from your parents.

The biggest thing that I keep in mind is your cash flow with the HELOC interest rate and how that is being deployed.The other thing I would keep an eye on is repayment.

At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses.