HELOC for BRRRR, will it affect my DTI for the refinance?

[Juan Castro]

Hi all, I'm looking to start a BRRRR project soon and I'm considering using my HELOC for financing the project. I have a HELOC with $140k and interest of 4.13% (variable) and about 50k cash. So I know a lot of you rely on private/hard money lenders, but my thought is that the interest rate in the HELOC is so low that it will save me tons in holding cost. Once the refinance is complete I can pay back the HELOC and hopefully recoup most of my cash.

I've thinking about it and my only concern would be that borrowing from the HELOC will affect my DTI and cause issues with the refinance, any thoughts? For the record my credit is around 800, I have no debt (other than my primary residence) and I have a stable w2 job with great income.

I appreciate the help.