We own a home in California, and my husband just got a job offer in Michigan. We do not want to sell our home because we love it, and we hope to return to the area. We would like to buy another home in MI and rent out our CA home. We recently closed on a HELOC, and our intention was to use that money for landscaping and a new kitchen. But now that things have changed and we need to move to MI, we'd like to use that HELOC money as a downpayment on a house in MI. Houses in MI are much, much less expensive than in CA, we feel that we could buy a house in MI that my husband can live in, and when my daughter and I are ready to move there, we can rent out the house in CA.
So my question is: Is it legal/ethical/okay to use the HELOC money for the downpayment on the new house? That loan is complete and we have the money in our account. Thank you, in advance for your thoughts!
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