HELOC slap on the wrist

[Tamara Cardello]

Just curious if this is normal, or anyone else has had this experience. Just purchased an investment property and used some of our HELOC as the down payment on the investment property. My loan officer left a message the next day and said we could not use the HELOC for the whole down payment and that we needed to show we are using some of our savings - he said he would be in trouble with the underwriter. (this was after we had closed on the property) This was a bank commercial loan. What are your thoughts about why this would happen?

[Jay Hurst]

Quote from @Tamara Cardello:

Just curious if this is normal, or anyone else has had this experience. Just purchased an investment property and used some of our HELOC as the down payment on the investment property. My loan officer left a message the next day and said we could not use the HELOC for the whole down payment and that we needed to show we are using some of our savings - he said he would be in trouble with the underwriter. (this was after we had closed on the property) This was a bank commercial loan. What are your thoughts about why this would happen?

 Did the underwriter not verify that you had the funds to close before allowing you to close the loan? 

[Tamara Cardello]

Everything was approved but it does not state anywhere what funds had to be used for the downpayment. We have both savings and HELOC - wondering if the loan officer stated we would be using some savings but never told us. How does it matter? I could still pull from my savings some and then just return it to the savings from my HELOC.

[Jay Hurst]

Quote from @Tamara Cardello:

Everything was approved but it does not state anywhere what funds had to be used for the downpayment. We have both savings and HELOC - wondering if the loan officer stated we would be using some savings but never told us. How does it matter? I could still pull from my savings some and then just return it to the savings from my HELOC.

 It should not matter. Very odd for the LO to tell you that after closing.

[Brittany Minocchi]

That doesn't make any sense, especially if you already closed on the loan. Maybe that lender has some sort of weird requirement regarding where the funds need to come from, but typically a HELOC isn't an issue....

[Jacob Sherman]

In the application there is a question if you are using a loan towards any of the down payment or closing funds