Can I use my line of credit for my downpayment?

Probably. Most lenders will allow the use of borrowed funds for a down payment, depending on all the other factors you present. Make sure you advise your Loan Originator of your plans UPFRONT. They will need to make sure the loan is underwritten with the payments on the borrowed funds factored in. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we are pending approval in VA. ~ www.ApplyYes.com 480-889-9000.

Yes, it is very common to use a HELOC on an existing home as down payment on the next home. It can get complicated, as you now may need to qualify for three loans. the existing house loan (if there is one), the payment on the HELOC, and the payment on the new home. Some people can pull that off. Many people can't. I lend in WI, MN, IA, ND, SD. Find me at WI-MortgageBroker.com - NMLS 274132