Can I use HELOC for down payments or it should be seasoned

[Karthikeyan S.]

Myself and my wife wanted to purchase 2 investment properties ( SFL or Duplex) on our names individually and with two conventional loans as individual borrowers (no co-borrowers). Location is not decided as we are in the process of getting pre-approvals.

I have a HELOC on my primary home (title with my spouse) but I am the borrower on the primary loan and HELOC. Currently, this HELOC has 50% balance and I would like to use the remaining funds in HELOC for down payment.

Question:

1. Can I use my HELOC funds for down payment without any seasoning requirement?

2. Can my wife use my HELOC funds for down payment on the property she would buy?

3. If answer for Q#1 is Yes, then I am thinking of moving my idle funds in checking towards reducing the balance in my HELOC.

4. If answer for Q#1 is No, then I should keep the funds in checking account to avoid the seasoning period.

5. Can we share funds in our individual checking accounts towards down payments or this will require seasoning again?