HELOC - Could I Regret It??

[Michael Young]

I have tried searching the forums here and found a few conflicting answers in old threads. I am looking to get a HELOC on my current primary residence. My plan is to buy a new home in the next year and convert my current home into another rental. I have a decent amount of equity on this property so I want to get a HELOC set up on it while it is still my primary home so I can use the funds in the future.

My question is this....If I open a HELOC at say around 50k-80k but do not draw on it until I secure a new loan/purchase a new house, will it affect my debt to income ratio for the new loan at all?....aka will a lender lower my borrowing power simply because I have a HELOC even though there is no balance on it?

In my mind it seems like it shouldnt at all...just like a credit card that has no balance or paid down to zero monthly doesnt hurt your DTI ratio but I have seen a few posts on here that suggest otherwise.

Any input is appreciated!