Using HELOC for down payment

[Kenneth Burdick]

Hi BP community,

Our current primary residence has a first-position HELOC. We were planning to use funds from this account to purchase another home, but the lender is having an issue with us "using borrowed money for the down payment." This seems like an overly simplistic way of thinking about this to me. Does anyone know of other good lenders in California that are OK with using a HELOC for down payment?

[Will Gaston]

@Kenneth Burdick Is the next home a rental? If so, have you tried a small, local bank and asked to speak to the commercial lender? They are usually more lenient about down payment sourcing. At least in my experience.