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Updated over 7 years ago on . Most recent reply
![Michael Dunn's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/162011/1695113872-avatar-mdsvtr.jpg?twic=v1/output=image/cover=128x128&v=2)
a $20,000 HELOC and how a Lender will interpret ??
If you have a HELOC of $20,000
When a Lender goes to look at my DTI ....... How will they look at this, as far as it being a Debt/Expense to me and them factoring it into the DTI for me getting approved for the loan ?
The minimum payment right now ( for the next 4 and a half years ) is $48 a month
So if I were to try and get a Loan for a property in the next 3 - 6 months , would they just use the $48 ( minimum payment ) that I'm paying on the HELOC as a monthly Expense ?
OR
Would they assume I have a Higher Monthly Expense , since the HELOC is only good for the Minimum Payment for 5 years ( 4 years and 6 months left ) before the Principal Payment kicks in , which will be around $400 a month
The HELOC is for $20,000 , of which ONLY $7,000 has been used
Thank you for the help
Most Popular Reply
![Harjeet Bhatti's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/314823/1621443631-avatar-harjeet.jpg?twic=v1/output=image/crop=797x797@0x113/cover=128x128&v=2)
The lender will count full p&I payment on $20000. The reason is you have access to that much money. You can avoid it by reducing HELOC loan amount and freeze it.