HELOC denied for improper use of funds

[Kevin Barnett]

I had applied for a HELOC with WF. My intent was to keep this money available for rehabbing projects (paying hard money lenders points, reserve funds for overages, etc.) Everything was going great and I was approved for $50,000. Then yesterday they told me they were going to reject my application because I told them I wanted the credit because my wife was starting up a home based business and needed that for reserves. I didn't state the nature of the business or anything so that was a true statement. But I thought it might scare them if I specifically stated it was a flipping business.

Before I go back and reapply elsewhere, does anyone have suggestion on stating my intended use of the funds? I can tell them I want to use it to pay off credit card debt but:

1) They know how much debt I have from my credit report. I want to borrow much more than my debt so if they ask why don't I just borrow enough to pay off that debt, I don't want to have to try to stumble and come up with a new explanation.

2) I don't actually want to pay that debt off right now and do not want them to pay it off for me. I don't know if they will or not, I just want them to open the credit line and let me do with it what I decide.

Anyone have any advice on what to tell them as my reason for requesting the credit line?