Options for getting LTV under 75% due to HELOC

[Prashant Bagri]

Hi Folks - I am about the close my 2nd home in 10 days (The 2nd home will become my primary residence). I already have rental agreement in place to lease my existing home. Last night, the banker emailed me and said that for them to be able to use my rental income for Debt/income calculation, they need my LTV for 1st home to be below 75% instead of the current 78.33%. They requested that I close my existing HELOC to meet that criterion.

I have a few questions for the experience folks here:-

1. Is there any way around this 75% LTV requirement that are stating now this late in the process? (Home has been under contract since feb)

2. Is it possible to request HELOC bank to reduce my credit limit by a certain amount so I fall under the 75% LTV requirement

3. Can I request exception from the mortgage company since we are really talking about only 3%?

FYI - my HELOC is not drawn and has 0 balance on it

Thanks