HELOC being called with decreasing home value

[Nicholas Vuong]

I have an Open HELOC that has a 5% 5yr draw and a line of 70k. I recently purchased a property that needs some renovations ~50k. I am trying to figure out what strategy to go with to finance the reno. Do I use a 18 month 0% introductory rate credit card and hold off on using the HELOC unless I need it or use the HELOC. My concern is if housing prices decline more and my HELOC is not drawn on then the can shut it down or cap it where it is at due to my LTV on the loaned property.

Does anyone know if banks are starting to talk about closing down lines of credit or at what point they did this in the Great Recession?

I am confident that I can pay back the 50k in full before the credit card introductory rate expires. I’m using this strategy to avoid dipping into my rental emergency