Purchase a new primary residency using HELOC as the downpayment
Hi, Everyone
Could someone help me on answering what will happen to my HELOC if I do the following?
I have a house A that is my primary residence. I recently applied for a HELOC on it, with the total amount of $100K. Now, I want to buy a house B and want to move to the house B as my primary residence and rent out house A. However, I don't have cash for downpayment on house B, so I decide to use the HELOC from house A to pay the downpayment ($30K) for house B. My question is: Will the bank that opened the HELOC for me on house A allow me to use the money from the HELOC account to pay the downpayment and change the house A, my original primary residence, into a rental? What will happen to HELOC if I change it to a rental?
Thanks
Lee