topic Re: HELOC ? in Mortgage Loans

HELOC ?

realworldknowledge — Tue, 17 Jun 2008 21:43:15 GMT

If you LTV for the first mortgage is >80%, is a HELOC out of the question? Or can you use the appraised value to open up the line?

Re: HELOC ?

DallasLoanGuy — Tue, 17 Jun 2008 22:02:39 GMT

on a purchase?

Re: HELOC ?

Lel — Tue, 17 Jun 2008 22:38:15 GMT

realworldknowledge wrote:
If you LTV for the first mortgage is >80%, is a HELOC out of the question? Or can you use the appraised value to open up the line?

I'm not sure I see the distinction between the home value that is used to calculate the LTV and the appraised value.

I just obtained a HELOC. The LTV ratio of my first loan is about 78%, and the combined LTV of this and the HELOC limit is about 89%. I first tried to obtain this HELOC from B of A, but they wouldn't allow a combined LTV greater than 85%, and I needed a higher line. US Bank allowed a higher LTV (up to 90%), so I got my HELOC from them. They may have changed the requirements in the last few weeks, however.

When I was shopping around, all other lenders drew the line at 85%; US Bank was the exception (thanks to Shane for pointing me in their direction). So if your LTV is less than 90%, then you might be able to get a HELOC from US Bank too.

They're going to do their own desktop appraisal, though. They came up with a value for my home that was lower than I expected, and when I tried to give them the appraisal from B of A that came up with a higher value, they wouldn't take it. They said they would send someone out, but it would cost me anywhere from $350-$700 for a walk-through appraisal. I decided to pass.

Re: HELOC ?

realworldknowledge — Tue, 17 Jun 2008 23:23:19 GMT

Sorry LTV from purchase price.

Re: HELOC ?

Lel — Tue, 17 Jun 2008 23:30:43 GMT

If you bought your home fairly recently, then the HELOC lender might accept the appraisal that was done at the time of purchase. I don't think they will use the purchase price. If it has been more than a few months since you bought your place, then they'll most likely do their own appraisal.

Re: HELOC ?

realworldknowledge — Tue, 17 Jun 2008 23:42:25 GMT

got it. Thank you.