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Updated over 2 years ago,

User Stats

18
Posts
10
Votes
Payton Ball
  • Rental Property Investor
  • Charlotte, NC
10
Votes |
18
Posts

Using HELOC on new residence

Payton Ball
  • Rental Property Investor
  • Charlotte, NC
Posted

I’ll start with the basic question then elaborate below. 

Can you still draw on a HELOC once you move out and the property becomes a rental?

I haven't seen anything that says no in the documents for mine, but I would assume that some would at the very least freeze it once you move. I've heard of situations where people have a HELOC that they still use years after moving out.

My plans are use the HELOC to build a detached garage and ADU on my new property, then refinance and pay off majority of the balance.

I’d like to get opinions before I bank on that strategy. I suppose worst case is that I could draw the balance right before I move, but I’d rather not pay interest before I have to.


Thanks in advance! 

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