Does a HELOC affect debt/income when applying for conventional loans?

[Justin Hennig]

Considering a HELOC on primary residence for further real estate investment purposes...would this affect a conventional property loan application since it is "secured debt" or mostly just affect credit scores?

Any help would be appreciated!

Justin

[Joshua O'Connell]

Any revolving or installment debt including credit cards, personal loans, student loans, auto loans, mortgages, equity loans or property taxes and insurance on your REO's will be included in your debt to income ratios. Assuming they are reporting to your credit report.

In addition, because a home equity line of credit is a revolving debt your loan balance to high limit can have a negative impact down the road with your credit score.

To answer your question directly it would have an impact on your DTI (debt to income) ratios on your loan application and potentially an impact on your credit score after you close.(this could be a positive or negative impact)

-Josh O'Connell