A Couple HELOC Questions

[Jerry Mical]

Hi all!

I have been looking into potential financing sources to purchase my first investment property. A few questions/scenarios:

1) If our mortgage for our personal residence is under my name only, but my wife is on the title to the house, could she take a HELOC out on the house that would only show up on her credit report?

2) If she can, could we then utilize the draw on the HELOC for the 20% down payment to get an investment property only under my name?

3) Do lenders typically even allow a HELOC to be used on the down payment of an investment property?

The scenario is my wife is a 1099 contractor with little income and so her DTI doesn't help us get the investment property. Our personal residence mortgage is only on my DTI calc and I have been pre-approved to purchase this investment property a little above listing price. My lender said there is not much wiggle room to go up from there. I want to use the HELOC on personal house for my down payment on investment property. I realize if I take it out in my name that it would affect my DTI and potentially disqualify me from the loan. Though I suppose I could just pull more from HELOC and increase my down payment until the DTI works? If need be, I can find other financing sources (401k loan, savings, PML, etc) but I wanted to look into the HELOC option if it were available.

I appreciate your thoughts and feedback. I am still taking in all the learning and knowledge I can possible find.

Thanks,

Jerry