Customer wants to use their 2nd home for collateral to do a advance type loan. They would only be able to borrow up to the maximum one time. Would this be considered a HELOC?

Doesn't sound like it. To be treated as open-end credit, there must be reasonable expectation of repeated transactions and that the amount of credit is generally made available to the extent that any outstanding balance is repaid.

If I understand your question, you're looking at a multiple advance, closed-end loan.

Agreed. Closed end multiple advance loan. A HELOC must be able to be repaid and reborrowed multiple times.

Thank you - Now can you tell me if there would be any extra disclosures or issues with this type of loan since it is a consumer loan?

Bump-
Any more help available?

The same disclosures you would use for a closed end multiple advance loan.