Question by mindy: Home equity loan requirements?
Besides having the house what are the requirements?
what is the process they use to approve or deny you for the loan?
Do you have to have perfict credit or just a house and income?
Best answer:
Answer by Bill
You need the same requirements as if you were buying a new house. The property has to be appraised and meet the underwriting guidelines. You need good income , malady more about good credit and the house has to meet value requirements.
Add your own answer in the comments!
Actually the requirements are harder for a refi.
You have to have 80% equity = you can pay down the loan to get this equity amount
You have to have a 31% debt to income amount (including the mortgage)
You have to have the income to pay the loan.
They are definitely going to take credit score into account. Some brokers might just increase the rate (you don’t deserve a A+ rate). Others might deny the loan.