"Who is most likely to get a home equity loan?"

[Gollum]

"In the third quarter of 2024, lenders denied HELOCs to nearly half of the applicants — almost three times the rejection rate of conventional mortgage loans. Criteria tend to be tougher for home equity loans, too."

and

"Lenders typically prefer a CLTV [Combined Loan To Value] of 80 percent at the most. However, according to the latest Mortgage Bankers Association (MBA) data, the average CLTV for home equity loans and HELOCs is much lower — 62 percent and 53 percent, respectively, in 2023."

and

"...home equity loan income qualifications can be challenging for baby boomers. Although they’re the most equity-rich generation, many are now retirees, living on fixed incomes..."

https://komonews.com/money/mortgages/best-person-to-take-out-home-equity (03-10-2025) Cookies required.

[TrapLine]

Did a Home Equity Line of Credit to replace a flood washed out retaining wall of $20,000 (2023). The bank had the house re-appraised and I came in at 80%. Used a local bank where the banker/owner knew me and I believe that helped (relationship and already a customer).

Purpose of the HELOC was to reuse it for internal cosmetic updates. Rate was average and I was a Baby-Boomer which in the banker's mind was a plus (proven track record).