Real Estate

HELOC to buy investment property

  • Last Updated:
  • Jul 16th, 2021 6:36 am
Jul 13, 2021
64 posts

HELOC to buy investment property

Hi guys,

Sorry guys if this has been posted before but I'm looking for more information to use a HELOC to buy an investment property.

If I use a HELOC for the down payment, how would that affect my ability for a mortgage.

Would the lender take my HELOC downpayment as debt?

2 replies
Deal Addict
Jan 17, 2006
2447 posts
Yes, lender will not know if HELOC used as downpayment and they don't need to, all they need that you have debt, does not matter if you used it or not. You can have HELOC with zero balance but limit will be considered as your debt.
Jul 24, 2018
80 posts
You book home listed at 1 million
Say you qualify for 500k HELOC.
You used 200k for downpayment.

Now you went to another lender for mortgage of 800k.
That lender will already consider you have to pay 500k mortgage or loan to someone. It will be in system on ur credit check.

Your ability is already reduced to get mortgage by 500k. The moment you get qualify for 500k HELOC. It does not matter how much of 500k you have used