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Updated over 4 years ago,
Questions regarding securing a heloc before applying for mortgage
The LTV on my portfolio is about 13%. I have been able to do this with the BRRR strategy. I would like to leverage more with the banks while rates are very low. Can I secure a heloc loan, not use it, and then apply for a conventional mortgage to buy a new primary residence for myself? I have been living in apartments to shelter my debt to income while I grew my portfolio. I am now tired of the apartment life, and would like to buy a new house for myself. The funds from the heloc would be used for future investments. Would it be easier to do the heloc after the house is purchased? I just figured if I don't use the heloc it will not impact my debt to income, but I'm sure they still look at it as a risk factor. Can someone weigh in? Thanks