@Anonymous 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.
