HELOC Effect on Secerance

[Dan Lee]

Hello,

I own an old home in a central part of town that I am going to be tearing down in the spring to build a semi detached home on.

I own this home/ lot in cash. I was thinking instead of getting traditional construction mortgage for the project if I got a HELOC on the property now that and some cash I have would be more than enough to get the project done.

Would having a HELOC on the property affect me severing the property though?

Any input appreciated. Thanks.