SOP RULE change on HELOC as down payment

HOT TAKE:

HELOC can be used for down payment and with the SBA SOP rule changes, income outside of the salary that you're receiving from the company you are acquiring is no longer required to cover the debt payment.

Your lender will confirm that the company you’re acquiring has adequate DSC including your new buyer salary. Your buyer salary will be tested to make sure it covers all your personal living needs, including the increased debt payment on the HELOC.

Most lenders are going to take the amount of the HELOC and assume it's fully drawn and use that payment when considering if the company can cover all of your personal living needs.

At least as of###-###-#### this change has survived the latest SOP update clarification as far as we know for now.