Disclosing use for HELOC on Primary

[Sean Salandy]

I noticed most applications for home equity lines ask you for the purpose of the loan. I currently have a pending application for my primary home which I currently own free and clear. I was honest with the bank by letting them know I plan on using the funds for real estate investing. So far the banker is saying they may not want to do the equity line because I am using it for other real estate. They would however be ok with me using it for home improvements or vacations, etc. My question is, do you have to disclose the purpose of the line of credit? Should I have just told them it was for home improvement?

[Roy N.]

Originally posted by @Joshua D.:

My follow up question would be: why would a banker not want it used for another house? 

 Because the banker wants you to place a mortgage for the investment property and still take out the HELoC for vacations ;-)

I tell them I'll be investing and they usually assume I'm putting it into my brokerage account.