Using Primary home equity to fund ADU

[David Maldonado]

Hey everyone,

I am thinking about using a HELOC soon to build an ADU my property. My bank offers up to 100% LTV for a primary residence. My one year occupancy is coming up and would like to know if having a balance on a HELOC or even just initiating one would affect me when I try to buy my next Owner occupied home? I would like to use the HELOC as a "Mortgage" for the ADU and just have the unit pay the loan over time while cash flowing.