topic Re: Credit Score and HELOC in Mortgage Loans

Credit Score and HELOC

drbarb0624 — Tue, 09 May 2023 22:08:30 GMT

I am new to this forum and I am curious about being approved for a HELOC and a credit score around 520. I even have a cosigner with a 770 credit score. I am sitting on over $300K in equity and because of a BK (CH 7) over two years, I cannot get approved. I have little in the way of debt now and the one company I spoke to said I would need to wait another two years just to get a cash out refinance. I make $87K per year and this is beyond frustrating. Any advice?

Re: Credit Score and HELOC

Jnbmom — Wed, 10 May 2023 00:30:45 GMT

@drbarb0624 wrote:
I am new to this forum and I am curious about being approved for a HELOC and a credit score around 520. I even have a cosigner with a 770 credit score. I am sitting on over $300K in equity and because of a BK (CH 7) over two years, I cannot get approved. I have little in the way of debt now and the one company I spoke to said I would need to wait another two years just to get a cash out refinance. I make $87K per year and this is beyond frustrating. Any advice?

If you are 2 years post BK why is your score a 520??

Honestly you are not going to be able to get a loan approval with a 520.

Re: Credit Score and HELOC

SouthJamaica — Wed, 10 May 2023 02:18:25 GMT

@drbarb0624 wrote:
I am new to this forum and I am curious about being approved for a HELOC and a credit score around 520. I even have a cosigner with a 770 credit score. I am sitting on over $300K in equity and because of a BK (CH 7) over two years, I cannot get approved. I have little in the way of debt now and the one company I spoke to said I would need to wait another two years just to get a cash out refinance. I make $87K per year and this is beyond frustrating. Any advice?

1. Welcome to the forum.

2. My advice would be not to get a HELOC and not to borrow further against your home.

Re: Credit Score and HELOC

FireMedic1 — Wed, 10 May 2023 20:08:24 GMT

Two questions:

1. Why do you need the loan?

2. Two years out and your at 520? How? You should be near or at 700 by now. Did you occur some baddies since filing?

Re: Credit Score and HELOC

BungalowMo — Mon, 15 May 2023 14:57:46 GMT

@FireMedic1 wrote:
Two questions:
1. Why do you need the loan?
2. Two years out and your at 520? How? You should be near or at 700 by now. Did you occur some baddies since filing?

While I wasn't going for a HELOC, I have a bk7 that was discharged in June 2020 and I had zero FICO score since then, simply because I had no active accts showing. My sister added me on a card as an authorized user and I just bought my scores today. All 3 were just below 700.

This is simply a comparison aganist what the OP posted.

Re: Credit Score and HELOC

rosco75 — Wed, 17 May 2023 12:35:24 GMT

Welcome to the forum!

I know this may be difficult to discuss, but the reality of the situation is that 2 years post BK you should absolutely NOT have such a low score. I would reccomend addressing that very large elephant before you try to borrow against your home with that score.

May we know more about your profile? How many accounts do you currently have open and with what limits? How many baddies?

I feel like with a little effort and some time you can improve your scores and have a better chance at approvals, as typically 2 years post BK is the first milestone where you are able to start getting good approvals. Its also the minimum time frame needed for an FHA and VA loan. (3 years for a USDA loan and 4 years for a conventional loan)

What are your needs for this loan? What resources do you have available to pay down any debt?

All of these questions will help us to better understand your situation and offer you the best advice we can.