HELOC for down payment

[Ricky Reese]

Hey BP community, I have read a few forums about the importance of a HELOC. I understand they can be very useful if used responsibly. For my current situation, I use conventional financing. The typical 20% down and 30 year term. Hypothetically, if I had equity in my primary property or rentals, could I use a HELOC from one of them for a down payment for another rental property? I know conventional banks and credit unions frown upon "borrowed" money for down payment. Not sure if a HELOC would be considered "borrowed" since the equity is there. Thanks in advance.