Mortgage home loan answers
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Would I qualify for a Home Equity Loan?
Posted on November 5th, 2010 6 comments
jonathanj003 asked:
I purchased a home for $220,000 three months ago (March). I put 10% down ($22,000) and financed $198,000 on a 30-year fixed mortgage. I have excellent credit and excellent history. My question is if I am able to pull some equity out of my home (which appraised for $230,000) this soon or not? I’d like to pull around $15,000 out. Is this feasible? If not how much would I qualify for if any?
Jacob6 responses to “Would I qualify for a Home Equity Loan?”
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Sure , you can pull equity out from day one .
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Scotty Doesnt Know November 19th, 2010 at 21:14
Qualifying for a Home Equity Loan also means finding a bank that’s willing to do a second mortgage. At the moment, that source of funds is drying up.
May I also offer, for your consideration, peer-to-peer lending sites like (my favorite one) prosper.com. You can apply for a loan there, and it gets funded by other regular, normal people who pool their money together to fund loans that other people ask for. Check it out.
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Holly R November 22nd, 2010 at 16:17
Based on the appraised value of your home, you currently have an 86% loan to value. If you pull out $15,000, you will then have a 92% LTV. We would probably make this loan. We would lend 75%-80% of the equity….roughly $25000. HOWEVER, there are MANY banks out there that simply are not subordinating right now. So, you may qualify, and this may sound very feasible, but both National City and Wachovia (and numerous others) have either frozen draws on HELOCs or they simply aren’t subordinating. If you can find a bank that will subordinate…you should be just fine.
It also will depend on your ability to repay this each month…probably not even a hundred bucks though… -
Biggie @ Arbor Mortgage November 24th, 2010 at 03:30
A little too early. You will most likely have to wait until you are there 12 months.
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Jesus is my heroe November 26th, 2010 at 09:38
to early wait a couple of more months && congrats on your new home.!!!
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Jeromy W November 28th, 2010 at 06:59
it depends. my question to you is when was the home appraised? within the past few months? If so, you might have a shot a this. As you have read, some people are saying yes, some are saying no. Holly was correct with your LTV, you may have to go subprime which means you’d be paying a pretty high rate. I have no idea what she it talking about with the subordination, taking out a home equity, the lender understands they’ll be in second position, there’s nothing to subordinate. This really comes down to where you live, banks are more lienent in areas where the values have not fallen as much. I’ve spoken to many brokers and bank workers across the us and it does seem that location can have a determining factor in this. My best advice would be to contact the lender you have your current first with, they may be more apt to lending to you, but call around and see who is offering what. Also, if you have anyone in your network that has access to a credit union, you may want to explore that as well. But don’t be suprised by a high rate, he loans tend to have higher rates that helocs and with underwriting tightening up, them may be a litte higher, good luck
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bobby d November 18th, 2010 at 23:31