cancel
Showing results for 
Search instead for 
Did you mean: 

Denied for home equity loan - reason bankruptcy 14 yrs ago

Tonie
New Visitor

Denied for home equity loan - reason bankruptcy 14 yrs ago

I have a 798 credit score with a combined income of $240 with my spouse. His credit s ore is 751. We were denied a home equity loan due to. Bankruptcy we file over 14 years ago. Is that legal?
Message 1 of 5
4 REPLIES 4
CreditInspired
Super Contributor

Re: Denied for home equity loan - reason bankruptcy 14 yrs ago

This doesnt sound right. Find another lender. 

On another note, is that combined income $240K because you would certainly be denied with a $240 income 😂🤣😆


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K || BOA CashRewards $6K
Message 2 of 5
JVille
Valued Contributor

Re: Denied for home equity loan - reason bankruptcy 14 yrs ago

Was this lender included in the BK ??? And have you received the Denial Letter Or was this told to you verbally?
Message 3 of 5
homeloanexpert
Established Contributor

Re: Denied for home equity loan - reason bankruptcy 14 yrs ago

Don't worry, you can get an  HELOC no problem. You selected the wrong bank to work with.

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo, Portfolio and Non-QM Loan Products. Licensed in AL, AR, AZ, CA, FL, GA, ID, IL, IA, IN, LA, MI, MO, MS, NC, NV, OH, OK, OR, SC, TN, TX, VA and WI.
Message 4 of 5
AZEsq
Regular Contributor

Re: Denied for home equity loan - reason bankruptcy 14 yrs ago

1) Yes, it's legal. A bank can refuse service for any reason that doesn't violate federal laws.

2) Are those your mortgage scores or some other score? Most HELOCs are underwritten with your FICO 5/4/2s, the same as any mortgage.

If you don't have those and are guessing your scores based on your FICO8 or, worse a VantageScore or CK score, you may be WAY off.

3) If the stated reason was the BK, there may be other concerning factors such as your DTI or utilization on your credit cards. A lot of financial institutions look at risk and if you have really high balances (even with much higher corresponding limits), they may deny you based on the potential to run up the cards. On the other hand, if any part of any debt to this lender or their parent company was written off, you may be denied on internal disqualifications.

 

That said, all banks don't have the same overlays or requirements. If your middle mortgage scores are over 720, you'll likely have no problem getting a HELOC somewhere as long as you have the equity. Good luck.

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.