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Updated over 2 years ago,
Using HELOC on new residence
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!