topic Re: Home equity timing? in Mortgage Loans

Home equity timing?

tcbofade — Thu, 28 Nov 2013 06:47:41 GMT

Supposed one purchases a home via short sale with considerable equity in it on the day of close.

How long does one have to wait before taking a home equity loan against it?

Re: Home equity timing?

DallasLoanGuy — Fri, 29 Nov 2013 20:17:25 GMT

most lenders will need 12 months.... i hear....

Re: Home equity timing?

andyaycw — Sat, 30 Nov 2013 00:47:20 GMT

YMMV and it depends on the lender. I am a mortgage underwriter at a credit union (Conventional Fannie/Freddie, Jumbo, and portfolio products such as HELOCs/HELOANs). We ask for a minimum of 120 days from date of purchase before doing such a product. That being said, we've had several deals go through without that seasoning, with upper management making that exception. Their reasoning at the time was 1) the home value was supported, and 2) it was clear that the HELOC was not being used to repay any gift funds or loans from the purchase of the subject property.

Best advice is to ask around and make sure that you get an answer from an underwriter (or the individual(s) that will ultimately be signing off on the loan approval.)

Re: Home equity timing?

StartingOver10 — Mon, 02 Dec 2013 18:59:36 GMT

I know a lender that will issue a HELOC within 24 hours of closing.

They are a small regional bank in my area.

If that is what you are looking for - contact your local lenders and speak directly to the LO's about their programs. You can do this without having your credit pulled or even making an application.

Re: Home equity timing?

tcbofade — Wed, 04 Dec 2013 22:35:45 GMT

@StartingOver10 wrote:
I know a lender that will issue a HELOC within 24 hours of closing.

They are a small regional bank in my area.

If that is what you are looking for - contact your local lenders and speak directly to the LO's about their programs. You can do this without having your credit pulled or even making an application.

Thank you.

DW has one more baddie on her TU that will fall off sometime this month...when it does, we're going to talk to the LO at my credit union...

Re: Home equity timing?

tcbofade — Thu, 12 Dec 2013 23:54:25 GMT

@DallasLoanGuy wrote:
most lenders will need 12 months.... i hear....

Hmph. That is what my credit union said.

The last baddie fell off of DW's TU report...she's in the high 700s on all three.

If we were to take a home equity loan right now, the credit union would use the purchase price as the value of the house...that doesn't help us any.

Any ideas where to go next?

(We're in Kansas City)

Re: Home equity timing?

StartingOver10 — Fri, 13 Dec 2013 01:44:49 GMT

That's why I said contact the small regional lenders.

I don't know the lenders in your area - my area I could tell you right away.

It's worth checking all of the small lenders and speaking with a knowledgeable loan officer that knows the underwriting criteria. Most likely it will be a portfolio loan.