Delayed Financing Exemption?

[Wendy Carpenter]

Can anyone educate me about using "delayed financing exemption"?

For example, if my partner and I found a property that was a foreclosure and needed a bit of work, can we use our HELOC's to buy it outright with the cash, take a few weeks/months to fix it up for some value-add, then apply for financing?

Would the balance on our HELOC's impact our DTI too much or would we just make it clear on the loan app that the refi would be used to pay off that HELOC debt?

Josh Daniel's talked about this strategy on the podcast, but he's using a commercial LOC for his, so it's a bit different.