topic Re: PenFed HELOC document request in Mortgage Loans

PenFed HELOC document request

Arcreactors — Sat, 21 May 2022 20:13:59 GMT

In the process obtaining a HELOC through PenFed. Today, I was assigned a loan processor and they requested several documents for underwriting. One of the requests was for a mortgage statement showing the payment was made for Aug 2021 and May 2022. Thought the August date was odd. Any idea why? Also, I've never had a 30 day late. I do have a history though of paying somewhere between the 12th and 20th of every month. Do they just want to see I have made the payment or will they disqualify me for being "late". Or do they only consider late being over 30 and on credit report? Seems to me they just want to verify I'm current and that the payment was made. Just trying to ease my mind a little. I won't be able to talk to anyone over there until Monday morning.

Re: PenFed HELOC document request

compassion101 — Sun, 22 May 2022 00:52:24 GMT

It sounds to me that they are just trying to verify it was paid. For lateness, I imagine they would base that upon your credit report if you were dinged for a late. What kind of rate/terms are you getting from PenFed?

Re: PenFed HELOC document request

Arcreactors — Sun, 22 May 2022 01:06:35 GMT

Yeah, no lates at all on my report so should be fine. As far as rates, looks like .99% for first 6 months then 4% plus prime. So 4.5%. Traditional 30 year...10 year draw, 20 year repayment. I haven't gotten that far yet so don't know for sure but that's what was discussed with me.

Re: PenFed HELOC document request

compassion101 — Sun, 22 May 2022 01:18:05 GMT

What LTV are they offering?

Re: PenFed HELOC document request

Arcreactors — Sun, 22 May 2022 02:07:20 GMT

They go 80% - 90% and its determined by your credit score. I plan to document and post my experience with all the details and requirements. I've researched a ton but no solid answers to a lot of things.

Re: PenFed HELOC document request

TheKid2 — Sun, 22 May 2022 15:34:33 GMT

@Arcreactors wrote:
They go 80% - 90% and its determined by your credit score. I plan to document and post my experience with all the details and requirements. I've researched a ton but no solid answers to a lot of things.

It would be great if you posted about your experience.

Do you know what score they used? I assume it was EQ 5 since they are known to use EQ exclusively.

Re: PenFed HELOC document request

Arcreactors — Sun, 22 May 2022 15:49:17 GMT

It was for sure Equifax but not sure which version. They require a minimum of 660.

Re: PenFed HELOC document request

DSTforlife — Mon, 23 May 2022 15:20:58 GMT

PenFed uses EQ Beacon 5 for their HELOC qualification.

As a data point, I started my HELOC application with PenFed (my mortgage is also with them). Although they didn't ask for multiple months mortage statements, I pay the mortgage on the 15th of each month and they didn't blink an eye. I cancelled my app with them because the hybrid appraisal came in much lower than other lenders. We closed with another lender in April 2022.

Re: PenFed HELOC document request

Arcreactors — Mon, 23 May 2022 15:52:49 GMT

@DSTforlife Thanks for the info! I was able to speak to them this morning. They needed August and May statement because they said it wasn't showing on report. I know May isn't because it is too soon, but not sure why August didn't show up. Our hybrid will be low also. We have a 1600 square ft finished basement that wont show on anything they pull. We fully expect to go through with a full appraisal if the hybrid comes in low. I think it would be this way for any lender for our situation though. So far, everything seems on track and the processor seems to think all will be fine getting an approval. I am within guidelines on all so far. Everything should be submitted by end week for initial approval. fingers crossed!

Re: PenFed HELOC document request

DSTforlife — Mon, 23 May 2022 15:58:33 GMT

good luck to you! we are finishing our basement with our HELOC. we chose to go the HELOC route because we plan to pay off the entire balance within 2 years....and we wanted to keep the tradeline available for other future uses.

Re: PenFed HELOC document request

TheKid2 — Mon, 30 May 2022 15:14:41 GMT

Hey @Arcreactors - any update?

Re: PenFed HELOC document request

Arcreactors — Mon, 30 May 2022 16:07:51 GMT

@TheKid2 Yes!, I got a call Friday that all conditions have been met for credit approval! So I am fully approved pending appraisal. I am asking for and approved for 180k. I owe 395k on the house and appraisal should be 750k give or take so there is plenty of equity there. My DTI with the Projected HELOC payment came in right at 49.93% after including 3 items on my report to be paid at closing. 1 being an auto loan. For data points I am almost 3 years post chapter 13 discharge. The documents I submitted for aprroval were simple. Most recent statements for items I'm paying off at closing, most recent pay stub, chapter 13 discharge, HOI with Pfcu added as 2nd lein holder, Hoa dues statement showing paid, most recent mortgage statement showing paid (because it didn't reflect on report yet) and they verified employment through my employer. The hybrid appraisal should be back this week but I expect we will have to move forward with a full appraisal because we have a fully finished basement that will not show up and will add a lot to our value. Once we finalize appraisal we will close. Should be easy from here.

Re: PenFed HELOC document request

TheKid2 — Mon, 30 May 2022 16:09:39 GMT

@Arcreactors wrote:
@TheKid2 Yes!, I got a call Friday that all conditions have been met for credit approval! So I am fully approved pending appraisal. I am asking for and approved for 180k. I owe 395k on the house and appraisal should be 750k give or take so there is plenty of equity there. My DTI with the Projected HELOC payment came in right at 49.93% after paying off 3 items on my report. 1 being an auto loan. For data points I am almost 3 years post chapter 13 discharge. The documents I submitted for aprroval were simple. Most recent statements for items I'm paying off at closing, most recent pay stub, chapter 13 discharge, HOI with Pfcu added as 2nd lein holder, Hoa dues statement showing paid, most recent mortgage statement showing paid (because it didn't reflect on report yet) and they verified employment through my employer. The hybrid appraisal should be back this week but I expect we will have to move forward with a full appraisal because we have a fully finished basement that will not show up and will add a lot to our value. Once we finalize appraisal we will close. Should be easy from here.

Fantastic! Here's hoping the rest goes super smooth to funding. It would be great to hear final terms (i.e. interest rate, fees, etc). Thanks for helping me decide if I go through PenFed for a HELOC myself!

Re: PenFed HELOC document request

Arcreactors — Mon, 30 May 2022 23:23:17 GMT

@TheKid2 I will keep you updated then post an overall summary of my experience. The rate is prime plus a margin. 4+.50 so 4.5%. They are covering the closing cost and if I have to do a full appraisal its around $580. Penfed has been really great to work with and easy!

Re: PenFed HELOC document request

jenrn123 — Sat, 02 Jul 2022 01:49:29 GMT

@ArcreactorsI appreciate the information you provided on your experience with PenFed and hope you have completed the process. I applied for a HELOC with PenFed a week ago and haven't heard back from them nor received any requests for information. How long did it take for them to reach out to you and make the initial information requests and assign a loan officer? I also wonder how long the process took for you from application to loan funding? I understand the process may have taken a bit longer for you due to having a full appraisal. If you don't mind answering, how much lower was your hybrid appraisal compared to the full appraisal? Thanks!

Re: PenFed HELOC document request

Arcreactors — Sat, 02 Jul 2022 03:04:46 GMT

@jenrn123 Hey! I'll be glad to answer any questions. I will eventually post my experience for others. From the time I applied until a loan processor reached out was about 6 days. That was when all of the initial documents were requested. This was 5/21. The main hang up for me was the appraisal. They do a quick desktop appraisal but was low because of the basement that we have finished and public record house specs being wrong so they did a drive by appraisal which I also knew was going to be wrong. The issue here is the drive by took only about 2 days for them to come by but about 10 days to get back. Only then was I able to request a full. The full was done on a Thursday and back 3 days later on a Monday. My loan processer warned me that appraisals have been coming in low, especially when a HELOC or 2nd mortgage is attached. The hybrid was 540k and my paid full appraisal was 680k. My house is easily 750k+. Although I was unhappy with this number It was suffice for what we were taking out (150k) I closed on my loan last Saturday 6/25 and the loan was funded yesterday 6/30. So even with all the hang ups and the feeling it was dragging on it only took 46 days from app to funding. Overall, a great experience with everyone involved with my case.

Re: PenFed HELOC document request

jenrn123 — Sat, 02 Jul 2022 15:51:36 GMT

Thanks for the information! Sounds like, as long as I get my documents in quickly and don't require a full appraisal, I should be able to get through the process in about a month. My house appraised for $427K 3 years ago and tax value is about the same. I owe $172K and am asking for $200K HELOC, so even if my appraisal is the same, I should qualify with 90% LTV. Comps in my area put my home value at around $575-600K. Here's hoping to get through the process quickly!