Best HELOC lenders 2 years after Ch. 7?

[Jd555]

Hey everyone it's been two years since the chapter 7, any suggestions on credit unions who would be willing to issue a HELOC for about 150k? Fico is 670 and can show good income. DTI around 40% and could lower that DTI further if need be.

[Kasuito39]

The DTI may need to be under 30% or less. Signature FCU & State Department FCU have great heloc products. I'm sure there more CUs out there with decent rates and terms. Good luck! 

[Jd555]

thanks so much, so both of those would not mind about the ch 7 (two years removed) ?

[Revelate]

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@Jd555 wrote:

thanks so much, so both of those would not mind about the ch 7 (two years removed) ?

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I think you're going to have to ask around.

There's no hard and fast rule as to what HELOC qualifications are, DCU is another one you might ask who maybe was the best on the market a few years back imo and at the time had comparitively loose underwriting requirements.  Ultimately underwriting can change a lot and what might have been valid a year ago quite probably won't be now in this rising inflation market.  

I think you  may just need to take a swing with the listed CUs and give it a shot, odds are if you have the equity in the property they'll play ball at 80% LTV even right now, but all the talking heads are talking about a global housing slowdown and property values falling, so it might be tight.

Ultimately HELOC is probably the only game in town, equity actual loans look very much like cash out refis and that's hard with a CH7 only 2 years old.

[ShanetheMortgageMan]

HELOC's are usually pretty sensitive to borrowers who have had a previous bankruptcy, soonest I've seen is 4 years after a Ch 7 BK and 2 years after a Ch 13 BK discharge.  Not to say there isn't a bank out there that'd do it less, but it's definitely not common.  The majority of HELOC programs require 4-7 years from a Ch 7 and there are even some that don't ever permit a borrower to have had a BK regardless of when it occurred.

[oorhett]

Here's a good thread that may shed some light for you, I was 18 mo out of my Ch7 when I closed on my HELOC - https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-Questions-scores-terms-etc/m-p/6283119#M250444