OK let me see if I can address this. There are no regulations or laws that limit an individual to just one HELOC. Now you’ll need to check your Loan Policy to make sure you don’t have anything in there that restricts having more than one. I would shocked if you did but hey you at least need to check that out.

I believe where your lender is coming from is based upon what type of loan your borrower should have from basic stand point of prudent lending. Typically HELOC loans are secured by a persons home, but a person can have multiple personal residences. In your example it sounds like for your borrower it would be a completely business loan. So that’s where your loan officer is getting that it would be a business line of credit, and typically that’s what they would have. However that doens’t mean that you couldn’t do a HELOC.

I hope that clears up the issue but I may have just muddied the waters even more.