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Updated over 7 years ago,
HELOC a possibility for a down payment on another home?
So I have a quick question I can't seem to find an answer to. My home is currently paid off and worth around $200,000. The house is now too small for my growing family so in thinking of up sizing, the only options we think we have to make this happen are to get a HELOC to have enough for a down payment on the new home. The plan is to keep my home and rent it out and the rent would pay off the loan but my question is is this legal? I know you can only qualify for a HELOC if it's owner occupied and in this case it would be when I get the loan but then not if I buy another home and move out. Again, the plan is to not sell my current home but merely rent it out. What are my options on this situation? Thanks for reading.