Buying new Primary with current Primary's HELOC

[Joshua Powell]

Hey guys, so a few weeks ago I closed on a 90 LTV HELOC for a duplex I househack. I was obviously was able to get this high of LTV because I was owner occupying the property. The HELOC is for $57k, but I had to use $30k of it to pay off a grant I used to help purchase the property (That's a whole other story, but essentially the grant had a ton of restrictions I didn't know about and after running the numbers I decided I was as way better off just paying it back) so only $27k is available right now. My plan was to aggressively pay off the $30k balance on the HELOC within 4-6 months while currently searching for new property to use the rest on.

Low and behold a triplex right on my street goes up for sale for $155k, and it looks like a solid deal. Since I live in a duplex on this street I know exactly what I can get in rent if I get the units updated (currently way under market rate for rent on month to month leases). If I could get it for $140k-$145k and update the property for $30k-40k, the ARV would be around $215k-$225k after getting rents up. I really don't want to use Hard Money for this as the property as it's in fine enough shape for conventional financing and the numbers wouldn't quite work given how expensive hard money is. I don't have quite enough to swing a ~$30k down payment and then another $30k-$40k in rehab, but I could do another 3%-5% low down payment loan and househack the place, then fix it up, get the rents up to place, and cashout refi sometime later next year.

What I'm really wondering is if the credit union that issued my HELOC would care or even know if I'm using the HELOC to buy another primary? When I initially applied for the HELOC, they asked if I planned to stay in my current residence for a year, and I said yes which was true at the time, but I didn't realize an opportunity like this would come up. Since I would be moving out of this duplex to the triplex down the street, would the credit union then call the HELOC due because its not my primary anymore?