Minimum Score For a Home Equity Loan

Anonymous · ‎03-06-2016

Hi, I am wondering what the minimum score is for a home equity loan or a home loan? I am in the process of rebuilding my credit. I have a few credit cards and a few store cards, an auto loan, & nothing else. Scores are now in the 630's. Haven't moved much now at all in the last couple of months. All my credit cards are always paid on time, nothing ever late. My auto loan through Chrysler reported 2 late payments in April & May of last year. Long story, but they pretty much screwed me there. I didn't have the money, and they said "as long as it's paid within 35 days, you're all set, it won't get reported." Me actually believing them, they reported it anyway. So, those are the only 2 lates on my credit at all in the last few years.

I own my home free & clear. My wife's grandparents bought it for us free & clear last year. So we own our home outright, and it's worth $200-$210,000. We are wanting to do some things to our home this year and next year. Only way we can do them though is with a loan. What are my chances with those scores and my rebuilding history I guess you could say? Does it bode well for me that I have the deed to my house and we own it? We bank with TD Bank, and I'd like to go through them for that as well, just not sure my chances.

Any ideas? Thanks,

Revelate · ‎03-06-2016

I figure some folks have gone through this though might be a better question in the General forum; however, has anyone gone through a HELOC application anytime recently and have any idea what the tiering looks like for LTV and FICO strata?

Looking at leveraging some financing for my 2 year school sprint (maybe I should've done the 30 year fixed instead of the 15 now heh) since for various reasons I'm trying to play catchup on my retirement accounts and maxxing out the 401K contribution is more important to me than a 5-6% interest rate that I can get a student loan worst case as I intend to plow through on the payments, just not the ~1800/month that the full tuition/books/etc costs are going to be roughly when factoring in summer classes.

However, I realized I do have some equity in my condo which I might be able to leverage as low as 4% currently, and figured I'd look into it as a result. Condo would appraise roughly at 355k now based on recent sales data I'd estimate, and I owe 250k so presumably I could get a 30K or so HELOC which would be more than sufficient assuming the 80% LTV line is there for mortgage + HELOC.

Meh duplicate as someone else's question, asked moderators to fix it since I can't anymore haha.

Anonymous · ‎03-07-2016

Can someone delete previous post? Not sure what that was suppose to be.

No one has has any information??? 130+ views and not 1 response. Someone must know something about this process etc etc.

Anonymous · ‎03-07-2016

HELOCs typically start at 680, but you will likely be able to find a lender who can do a cash-out refi for you. Some lenders have overlays requiring certain scores, but many can do a cash-out refi with your scores as long as they get an AUS (automated underwriting) approval.

Revelate · ‎03-07-2016

@Anonymous wrote:
Can someone delete previous post? Not sure what that was suppose to be.

No one has has any information??? 130+ views and not 1 response. Someone must know something about this process etc etc.

Screw up on my part I guess; posted it, and then saw there was pretty much a duplicate so just asked them to merge, maybe wasn't the brightest idea I ever had. HELOC's aren't a hugely common topic here.

Mea culpa.