Traditional lending wth open HELOC

[Ismael Ayala Jr.]

Would a unused, open HELOC affect my credit worthiness or increase the risk in the eyes of a traditional bank lender? I'm honing in on a townhome that's closer to work. I have 2 SFH. I live in one and rent the other for positive cash flow of $400.

After all is done, I would have 2 rental properties. And a townhome as my primary residence.  I'm leaning towards traditional lending withh the new home builder because they're offering 5.5-5.99% interest rate. 

[Val Garrow]

Watch out for that interest rate... it is probably only for the first 12 months.... that should keep you from cash flowing... 

Yes your Heloc + Mortgage for the first home will be added to your DTI, however if you have a tenant in place that covers that amount (contract for at least 12 monhts) you might be able to write it off...