Equity Home Loans

Are people ever denied HELOC or Home Equity Loans when they have a lot of equity in their home?

Say someone wanted a 30K Home Equity Loan and they had 200K in equity in their home. Would they get the loan everytime regardless of credit score and other factors?

Public Comments

1. Nope credit score, amount of debt, and amount of possible debt (possible debt is if you have a lot of credit card accounts open even though you have no balance the fact you can get a balance hurts your ability to obtain further credit) are all taken into account.
2. Your ability to repay any amount will be the critical factor. If you have no income, you will not be able to get a loan. If you do have an income and damaged credit, keep shopping you will be able to find a lender who is willing to make the loan. Be careful! Read your disclosures! And Shop SHOP SHOP! Good Luck ~ The Renegade Banker
3. No! Equity alone is not a good enough reason to do a HELOC. However guidelines with this type of equity are very lax, and you can probably find a lender to do this for you.