No. An open HELOC with a zero balance generates no payment and adds nothing to your DTI. It only starts counting when you draw on it. Under Fannie Mae, Freddie Mac, FHA, and VA guidelines, an undrawn line is treated like a credit card with no balance: the available limit does not hit your ratios. Years ago some treatments keyed off the available limit, but that went away for these loan types. Some jumbo and non-QM lenders still run their own overlays, so confirm the rule if you are in one of those. And the 5%-of-balance imputed payment you may have heard about applies only to revolving accounts that carry a balance with no stated minimum payment on the credit report, so it never touches a zero-balance line. Once you draw, the required monthly payment counts: - Fannie Mae uses the payment reflected on the credit report, the minimum due. If no payment is required, none is counted. - Freddie Mac uses 1.5% of the outstanding balance when no payment is documented. - Multiplying the balance by the rate and dividing by twelve only approximates the interest-only case. Underwriting uses the documented payment, so expect the credit report figure to govern. The practical takeaway: a zero-balance line kept in reserve will not hurt your qualifying, and the money you pull out will show up. If you are planning to use HELOC funds for a down payment on another property, tell us up front so we can document the draw and build the resulting payment into your numbers correctly.