HELOC questions in regards to primary residence

[Mary Smith]

Hi, here's my scenario:

I bought a house in cash for 42k - then took out a 34k HELOC on it. It is/was my primary residence.

Now I'm under contract to buy another home - that I will be moving into - so my primary residence is changing (I will be taking out a fixed rate 20 year primary residence mortgage for that property) with another lender. 

Will this effect my ability to keep the HELOC open? Currently it has a zero balance. If I use the HELOC and the lender finds out it's not my primary residence anymore will there be ramifications?

Could I even potentially ask for a larger line of credit once my initial property purchase has seasoned? 

This seems like a question for my lender - but I was wondering if people knew in general HELOC terms.

Thanks!

[Kevin Lefeuvre]

I am in a  similar situation. Mentioned this casually to the banker and she didn't react. I think these programs have strict guidelines at the time of closing, when they are evaluating their risks, but once it's approved it's totally a different story. I don't see anything in the documents saying you can't stop living in the house for the 10 years coming. 

That said, if I were you I would use it (buy another property cash with the heloc), at least partially,  before changing address. What would they do? Risking a foreclosure while you are paying them on time? Wouldn't be common sense. 

PS. Same thing for an owner occupied 30 years loan; rates are better if you promise to live there, but they never come after you when you move out and rent.