This is straight from the CFPB website: "Additionally, for 60 days from the date your loan servicing transfers, your new servicer cannot charge you a late fee or treat the payment as late if you sent it to your previous servicer on time or within the applicable grace period."

Originally, I felt limited by conventional lending DTI.

@Nick Cooper you can buy with as little as 15% down on a single unit property with conventional financing.

You'll have an option between the FHA househack 3.5% down and the conventional househack 5% down - if you're VA then even better though. 

I'm curious why you want a HELOC instead of a conventional loan in the first position.

For a conventional loan, you can borrow UP to what you paid for the property plus closing costs OR 75% of the appraised value which ever is less.  

You can use FHA with 3.5% down or Conventional with 5% down for a property liek this. 

@Kyle Trotman If you purchased with a hard money loan conventional lenders will require extensive seasoning to utilize the new appraised value for cash out. 

There's also the conventional loan program CHOICERenovation by Freddie Mac.

I see little benefit in the FHA as an option as long as the 5% conventional loans are available now.