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Occasionally we have a HELOC that is used to purchase the property that it is also secured by, in the case of this scenario where it is going to be for the purchase of the consumer’s principal dwelling I have read that the first draw isn’t subject to ROR (to purchase their principal residence) but the subsequent ones are. I need help understanding this, here are my scenarios: If the loan amount is $22,000 and the purchase price is $22,000 they use the entire line for the purchase and then pay it down and re advance later is that “subsequent draw” subject to ROR, or is it more in the circumstance where the purchase price is $22,000 they draw that much to purchase the property but the line is for $30,000 – where there is additional funds available in addition to the amount used to purchase the principal residence (extra $5,000 subject to ROR?)
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