Non-occupying co borrower on a HELOC, is this possible?

I do not know of a bank or credit union that allows for a non-occupying co-borrower but that does not mean that some community bank or credit union might not allow for it. It is likely difficult to find. Usually primary home purchase loans that allow for a non-occupying co-borrower are FHA loans, and it is possible to get a second loan on a property currently financed with an FHA loan (Title 1). You would have to do some searching to find a lender who will do that type of second loan. We do have a conventional loan that we do that allows for a non-occupying borrower, but I found most of those borrowers seeking funds ended up refinancing with cash-out as they could not qualify for a HELOC with just the occupying borrower.

Highly unlikely.. since there are no "conforming" guidelines when it comes to HELOC's, every lender who does them can make up their own rules.. and because most are 2nd position loans, it's highly unlikely they would allow someone who cannot afford/qualify on their own to obtain a non-occ co borrower.. the loan is risky enough being in 2nd position.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Most likely not. A HELOC is typically in 2nd lien position, which is considered more risky. Most lenders doing a 2nd lien want to ensure you fully (on your own) qualify for the 1st lien before granting you approval on a loan in 2nd position. You can call some smaller banks and credit unions to see if they are willing to do it. If you're looking for a 2nd lien to help with a down payment, you may want to check to see if your state offers a down payment loan assistance program. Best of luck!!