We had a HELOC in negotiation with our current mortgage lender (Rocket Mortgage) and they have called saying because we had a HELOC in the past (completely paid off by the way) that we have a 50(A)(6) attached to our mortgage preventing us from starting a second HELOC. I'm not so sure that is correct. Any local B/CS banker with knowledge would be greatly appreciated. TIA

Bryce Kennemer with Guarantee Mortgage would be my vote for helping you figure this thing out, his dad and him are great people to deal with regarding mortgages.

Thanks for the info.

You need to call or get ahold of the previous HELOC lien holder and tell them to release their lien or see why they haven't by now.

Update: After reviewing we did a cash-out refi almost 7 years ago to take advantage of the low interest rates at the time. We are currently paying that mortgage. Because it was a cash-out re-fi, does that fall under the 50(a)(6) rule? If so, how in the world do you take advantage of the equity that we have built up in the house. We still have about 14 years left on the mortgage, so this would mean the only way is to take a small loan at a bank...not at todays interest rates!! TIA

You need to go talk to a local banker. Someone you know or referred to by a friend. Don't walk into a Wells F. or a BOA. It sounds like if your HELOC was paid off then the originator of that loan should have released their lien and removed the designation on the title commitment. Did they send you a release of lien? There are details that need to be washed out in person with someone that can sit across a desk from you. Technical terms in conversations like these matter.

The "one loan rule" posted above is correct. Therefore, your existing loan will need to be paid off and "rolled into" a new cash out loan. The good is access to your equity while the bad is you lose the current rate you have (sounds like you have good one).