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| I am closing on a new home in less than a month. I am financing the new home with a conventional loan with the understanding that it will be my primary residence. I plan on keeping my current home which I have lived in for four years. For a while it will be a second home but I eventually will rent it. My question: Can I be approved for a HELOC on my current primary residence? The credit will not be used to finance the new home. I just wanted to get approved and have the credit now while it is still my primary residence before it becomes a secondary or rental property. Thanks in advance for any advise. |
Follow-Up Postings:
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- Posted by dave_donhoff (dwdonhoff@hotmail.com) on Thu, Jan 29, 09 at 13:38
| Hi Humpy, Yes, you might qualify for a HELOC, but you can no longer non-fraudulently apply on the basis that you "intend to occupy as your primary residence," therefore you will be graded and priced based on an investment property. The crossing-of-the-line occurs with your intent, not the closing of the new home. The fact you've already executed your new home purchase is enough for an auditor to prove banking fraud (a federal offense) if you sign any application or represent yourself as intending to occupy the old place as "primary" for a HELOC. Lessons learned, hopefully; Luck, |
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| Thank you. That is exactly what I needed to know. |
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| Hi Dave, Don't know about hornets, but when bees swarm, they're strongly disinclined to sting. Hope things are settling down, at home. Thinking of you. ole joyful |
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- Posted by dave_donhoff (dwdonhoff@hotmail.com) on Fri, Jan 30, 09 at 12:44
| Joyful, Thanks for the thoughts... very sincerely. I'm obviously "back out in public" but the ongoing grief, tears & breakdowns don't show up on the published monitor screens (thank goodness.) My wife & I have received SO MANY warm & supportive contacts from the community(s)... I can't even begin to thank everyone to the depth of your value to us. Every "touch" is the spiritual oxygen we've been surviving on in the dark depths we've been plunged. My love & appreciation to you all. |
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