Debt to Income Ratio for HELOC

[Rhonda Blue]

Hello

I want to take advantage of the high appreciation rates currently in SOCal so I applied for a HELOC of 120,000. I have home value of 770,000 and owe 525,000. That is 245,000 in equity.

BofA has called and said that they will approve a Heloc for 50,000 that puts our debt to income ratio at the required 54.99.  We only have our one primary mortgage on our credit report besides a few cards that we use for business and pay off every month.  I was told that last time I bought a rental that our debt to income was below 30. 

We also currently have 4 other rentals that we carry mortgages but all are cash flowing! 

Am I missing something. I thought for sure we would be approved but at this rate It's impossible to borrow against equity for any real substantial sum! I'm thinking we would be better off doing a cash out refinance! But I wanted to try the BRRR strategy with a 120,000 HELOC!

Small Rant but I'm frustrated.... Thanks for listening