HELOC to buy investment property

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Jul 16th, 2021 6:36 am

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Jul 15th, 2021 7:15 pm

Seeknfind [OP]: Newbie; Jul 13, 2021; 64 posts; 15 upvotes

Jul 15th, 2021 7:15 pm

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?

Thanks

2 replies

Jul 15th, 2021 11:10 pm

ilim: Deal Addict; Jan 17, 2006; 2447 posts; 2651 upvotes; Toronto

Jul 15th, 2021 11:10 pm

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.

+1

Jul 16th, 2021 6:36 am

GCSingh: Newbie; Jul 24, 2018; 80 posts; 77 upvotes

Jul 16th, 2021 6:36 am

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

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