HELOC counting against DTI?

[Justin West]

Hi,

I am in a unique situation and have a few questions. I own a Painting Company in cherry hill, NJ. I just hit my 2 years tax return point and now have proof of income ($55k Per year after taxes) to be able to be approved for a mortgage. 

Although the situation is interesting because I recently bought a house with my girlfriend in July 2022. Although at the time I didn't have 2 years of tax returns so her grandfather had to co-sign and add me to to deed after purchase. We bought the house for $295k with 20% down and out about $100k in the renovation. The house is now estimated to appraise at around $450k. We are currently in the process of getting a HELOC (My girlfriend and I both as borrowers) to pull out 80% of the equity ($125k).

So my question is; will the HELOC count against my DTI when I go to buy an investment property if I kelp balance at or close to zero?

I have gotten approved for a $250k mortgage. With that and a $125k in working capital we hope to hit the ground running and move onto an investment property as long as the HELOC doesn't hold me up.

Thanks,

Justin