topic Re: My bank said no to HELOC, should I try again? in Mortgage Loans

My bank said no to HELOC, should I try again?

Anonymous — Sat, 19 May 2018 22:19:58 GMT

So I will try and be as complete as possible. My bank only uses TU for applications, and my score came in @676. Their pull showed $2673/$7400 in revolving credit (total of 3 CC, 2 store cards), 1 of the cards showed a $0 balance, and the other 4 showed $1744/$2000, $770/$2000, $150/$1500, 9/700. My actual total balance was $1744, 2 cards 0, $997/$2000, $738/$2000, $9/$700 (the 9 dollar one is actually now a 0, but that card wont report til the 10th of June). For some reason TU didn't update til today, the other 2 agency's already had the correct amounts. I did explain to the loan officer what the actual numbers were, but they said that would not make a difference. I have 4 student loans that are currently on income based repayment ($8328, $3854, $1959, $462) for a total of $14603 in student loans.

my 2016 income was $14973.85 from the USPS taxable, with a mileage reimburment of $3924.11 which is non taxable, and $6443.64 in VA disability payments. 2017 income was $20,571.24 USPS taxable, $6238.06 non taxable, and $6443.64 VA. As of my 4 MAY paystub, I've made $12280.83 in USPS taxable, $3512.66 non taxable, and $2089.44 VA.

Ok, according to Lexington Law (I am enrolled in their credit rehab program and get monitoring and identity theft protection as well), i have EQ 6 negative accounts.

4x fed loan servicing 120+ late 2@ SEP2011, 2@AUG 2012 (I defaulted and then rehabed them over a year ago, and have been current ever since)

2x Veterans Admin collections both Feb 2013 both paid in full.

TU 3 negative accounts

fed loan servicing 120+ late Sep 2011

2x Veterans Admin collections both Feb 2013 both paid in full.

EX 2 negative accounts

2x Veterans Admin collections both Feb 2013 both paid in full.

Now for some reason, ck shows no derogs on TU or EQ, not sure why that is.

Average age of credit 3yrs 1 month

i guess I'm just wondering if I should try another bank about a HELOC or just give up on the idea and go with my already approved VA mortgage. I'd really rather not do a mortgage just because that will be much more than getting a HELOC would be (because I could buy a house for way less money with cash that needs some work but is livable)

Sorry for the long read but I read in the helpful post to be as accurate as possible.

The already listed cc's and SL's are my ONLY debts, I own my current house outright. No car loans either.

Re: My bank said no to HELOC, should I try again?

NC_Mtg_Loaner — Sat, 19 May 2018 22:29:16 GMT

How much equity do you have in the home you want to obtain the HELOC on?

Re: My bank said no to HELOC, should I try again?

Anonymous — Sat, 19 May 2018 22:34:13 GMT

tax assessment is $99k. My bank will do a heloc without an appraisel, so we were just using the tax assessment

@NC_Mtg_Loaner wrote:
How much equity do you have in the home you want to obtain the HELOC on?

Re: My bank said no to HELOC, should I try again?

Anonymous — Sat, 19 May 2018 22:51:00 GMT

So after I posted this I decided to grab an adult beverage and walk down to get the mail (my driveway is 1/4 mile long). And in my mailbox was my declined letter from my bank. it says TU08 score 676, obtained 16May, and scoring factors...

10 - Proportion of balance to high credit on banking revolving or all revolving accts is too high

14 - Length of time accounts have been established

3 - Proportion of loan balances to loan amounts is too high

39 - Serious delinquency

Re: My bank said no to HELOC, should I try again?

pipeguy — Sat, 19 May 2018 23:19:01 GMT

My suggestion is to join NFCU (I don't suggest PFCU but others might). NFCU works wonders with Vets and you can call them and talk about your situation before you even join.

https://www.navyfederal.org
https://www.navyfederal.org/products-services/loans/equity/equity.php

We just refinanced our home through NFCU - very easy, very fast and they hold your hand as much or as little as necessary.

Re: My bank said no to HELOC, should I try again?

Anonymous — Sat, 19 May 2018 23:25:01 GMT

long ago, I had accounts at Penfed. I had a home equity and a couple new car loans through them... defaulted on the home in 2009. I've never tried NFCU though.

Re: My bank said no to HELOC, should I try again?

kc0039 — Mon, 21 May 2018 17:44:02 GMT

Why did they deny you though?

Re: My bank said no to HELOC, should I try again?

JVille — Mon, 21 May 2018 18:51:14 GMT

Plus we still need to know what you owe vs amount property is worth?????

Re: My bank said no to HELOC, should I try again?

Anonymous — Mon, 21 May 2018 21:52:21 GMT

@JVille wrote:
Plus we still need to know what you owe vs amount property is worth?????

I owe nothing on my property. The current tax assessment (July 2017), was 100k. Just got my updated MCS. Last month I was a 639, this month I hit 671!!!

Re: My bank said no to HELOC, should I try again?

Anonymous — Mon, 21 May 2018 22:02:45 GMT

@kc0039 wrote:
Why did they deny you though?

The letter from my bank stated my TU08 score is 676, obtained 16May, and scoring factors...

10 - Proportion of balance to high credit on banking revolving or all revolving accts is too high

(currently $1744/$7400 revolving debt)

14 - Length of time accounts have been established

(AAoA 3yrs, 1 month)

3 - Proportion of loan balances to loan amounts is too high

(total open balances are 4 student loans in good standing $14,603 owed, and $1744 in revolving debt for a total of $16,347)

39 - Serious delinquency

(3 negative accts on TU, fed loan servicing 120+ late, date open Sep 2011, paid in full... 2 x us DEPT of Veterans Affairs collections, date open Feb 2013, paid in full)

Re: My bank said no to HELOC, should I try again?

kc0039 — Tue, 22 May 2018 15:12:14 GMT

@Anonymous wrote:
@kc0039 wrote:
Why did they deny you though?
The letter from my bank stated my TU08 score is 676, obtained 16May, and scoring factors...

10 - Proportion of balance to high credit on banking revolving or all revolving accts is too high
(currently $1744/$7400 revolving debt)
14 - Length of time accounts have been established
(AAoA 3yrs, 1 month)
3 - Proportion of loan balances to loan amounts is too high
(total open balances are 4 student loans in good standing $14,603 owed, and $1744 in revolving debt for a total of $16,347)
39 - Serious delinquency
(3 negative accts on TU, fed loan servicing 120+ late, date open Sep 2011, paid in full... 2 x us DEPT of Veterans Affairs collections, date open Feb 2013, paid in full)

If the reason is score then raise your score more. The other stuff they gave you is the reason why your score is 676.