HELOC DP's and Process #4

[oorhett]

I acquired my first Heloc $250,000 around Mar 2021 to fund a large renovation on our forever home from a local bank. Thread here: 1st HELOC  

Not too long into the renovation, it was clear we were going to need more, so acquired a 2nd HELOC $200,000 from BCU in 2023. Thread here: 2nd HELOC 

Once the renovations were completed, I acquired a 30-year fixed mortgage that paid off the existing HELOC's plus gave us a little more cash to do some landscaping Mar 2024, and then opened a new $53,000 Heloc with BCU again to help fund a Real Estate Investment. Thread here: 30 Year Conventional 

I now have a $90,000 balloon payment due June 1 on an additional note that I signed as part of that investment against our house.

I could cash out my brokerage accounts and sell off my I-bonds and still be a little shy so would have to take a loan out against my 401k. Really don't want to be pulling out of the market at this time. 

So going to go for another HELOC to pay off the $53k BCU and the $90k private note against the house. Looking for $100,000-$143,000 the extra $43,000 would allow me to not touch my 401k.  

Targeted HELOCS/Banks: 

1. BCU - See if they will increase my current HELOC 
   1. 5/15 I/O HELOC 
   2. Been super easy to deal with in the past and for the past year my HELOC was at a .99% Promo rate! 
2. SSFCU ( Security Service Credit Union ) - Been a member for several years - Tried them back in 2023 and was denied they cited BK but digging a bit deeper they didn't want to go behind another HELOC 
   1. 15/25 I/O HELOC 
   2. Supposed to go up to 55% DTI 
   3. Have a 12 mo Promo rate of 6.99% then 7.5% 
3. NFCU (Navy) - Been an active member here since my 2019 BK two CC and part of my DD goes here - Tried them also in 2023 and was denied for BK 
   1. 20/20 I/O HELOC 
   2. Advertised 7.75% rate 
4. MACU ( Mountain America Credit Union ) - Local Utah CU. Been a member here since before my BK 
   1. They have an I/O 10/10 HELOC
   2. Also have 30yr 2nd Mortgage 15 yr balloon 
   3. Suggested a 48% DTI 
5. Signature CU - Opened an account with them in 2023 and was denied a HELOC ultimately citeing BK after telling me it was ok 
   1. HELOC 10/15
   2. Also have a 20yr fixed rate loan 
6. Figure - Online Heloc 
   1. 30yr HELOC 
7. Central Bank - Local Utah Bank - Don't have an account but a lot of locals use them for Real Estate loans 
   1. 10/10/10 I/O HELOC, Open for 10 years can renew 2x, balloon payment after 30yrs from when it was opened 
   2. Was told they go to 50% DTI 

[oorhett]

1. BCU -  Called and told I would need to apply for a new loan can't just adjust current HELOC - Countered at $60,000 - Not moving forward with this one. 
1. Appd 04/16 Pulled TU 738  Was told my Score put me at their 2nd tier credit (700-750) 
2. Will let me go to 49.99% DTI standard is 45% -
3. Included payment on student loans that are in a $0 payment plan, Auth User Amex Payment
4. Requested 24 months to verify Bonus income ( I get a bonus 1x per year in Mar for the previous year ) 
5. Countered with $60,000 HELOC at 7.5%  so +$7000 (Felt like the loan officer/processor really wasn't as helpful as previous ones)  
2. SSFCU
1. Applied in branch 04/14 (was honestly more difficult and I won't ever work with them again during the loan process so in hindsight would just app online in the future ) 
2. Pulled all three Mortgage scores Factual Data: EXP 736, TU 738, EQ 724
3. Had not seen or heard any activity so called the branch on 04/17 was told they would look into it, Loan Advisor called later that day to let me know they had the application and emailed me a link to docusign the application and requested the following documents, sent in same day:
1. Last 30 day paystubs
2. 2023 and 2024  W2s and/or 1099s for your income
3. 2023 or 2024(if filed already) personal and business tax returns (please include pages, schedules and K-1s)
4. Most recent mortgage statements 1st and 2nd
5. Homeowners insurance declarations page subject property.  
6. Home Owners Association statement- if applicable all properties- Reply back to this email confirming if there is no HOA fees.
4. 04/24 Recieved an email from Loan processor requesting HOA info and a Statement for my current HELOC to request payoff
1. Sent that off to them same day 
5. 04/28 Received what looks like a system generated email from Loan Advisor: "Congratulations! Your loan has been conditionally approved. Sherry... , your assigned loan processor, or I may contact you to request any additional information that is needed."
3. NFCU
1. Appd online 04/16 Pulled Equifax Beacon 5: 724 got email inviting me to the Homesquad app etc  
2. 04/16 Got a call from the processor to go over the application details 
3. 04/14 Processor called to discuss the loan - 
1. Was told my DTI is to high for the I/O But that I would easily qualify for the regular HELOC that is not I/O after much discussion determined that the required I/O DTI was 50% and I was at 67% but then was told the Max DTI is 65% for the regular HELOC and that she would have to rework the loan to see what they could do for me because I am at 70% - still do not understand what calculations they used for these DTI's 
4. 04/17 Recived several emails, disclosures, and a notice letting me know that my Property valuation is underway with a preliminary value (which was a bit low but still under the 80% LTV
5. 04/18 Processor called back with a counter offer of $135,000 Regular Heloc and the Max DTI is 60%
1. They are using 1% of the line amount to calculate the DTI $1350 
2. Told the processor to go ahead and submit at $135,000 was told the process could take up to 30-40 Days but is usually quicker
6. 04/28 Email from processor
1. "File Update: Currently your file is in with our Credit review team. With the bankruptcy that was showing we must get a manual approval. Your file was submitted initially on the 18th for credit review. I made a mistake and didn’t place a date in when submitted so it is taking a little longer then expected. My apologies.  I do however want you to know that everything is where it should be and I will let you know once we hear back from our under-writing team."
4. MACU
1. Applied 04/17 pulled EXP:  Process was very well thought out and put together best application experience I have had for a loan 
2. 04/18 received e disclosures and a separate email from processor letting me know the AVM returned a value on the home that put me at 68.180% LTV with my requested loan amount $150,000 which puts me at a 1.5% margin so rate would be 9%, OUCH! Requested documentation
1. 2 most recent paystubs 
2. 2023 W2 
3. Most recent Mortg statement
4. explanation of Credco inquiry (SSFCU) "Rate Shopping" 
5. Driver license 
6. Home owner Declaration
3. I replied as it suggested I should login to the loan hub to upload these documents yet there was not link to this anywhere in the email asking for instructions. Same day 04/18 an automated status of "Application sent to processing"
4. 04/28 Called the processor to get more information as they never replied to my email 
5. Signature CU -
1. Applied 04/16 Pulled EQ: 723
2. 4/17 Reached out via secure message as I had not seen an email or inquiry on my Credit and got a response from KWAN my processor to let me know that they were being assigned to my loan and would be reaching out soon
3. 04/18 Processor called and let me know that they do not have an I/O HELOC and that the max DTI that they allow is 43% And that they use 1% of the line amount to calculate DTI  - This is definitely a change from when I first joined this CU
4. 04/18 Received an email to fill out the DocuSign disclosures – Considering looking at there regular 20yr Home Equity loan but probably not – May look at getting a PLOC with them down the road and hope they are still a good source for those.
6. Figure –
1. Applied on 04/17 SP on Experian
2. Offered $34599 9.75% 30Yr HELOC Fees = $1726 ( I don’t know if they are offering this on top of my current heloc so third position it wasn’t very clear and no real person to talk to about this – Super easy application but I never accepted to actually pull credit and find out, waiting on other options.
7. Central Bank (UTAH) –
1. 04/17 No way to app online I don’t have an account with this bank called in and spoke to a LO who said would email me an application. Received the link to apply but havn’t yet  

[oorhett]

Reserved

[oorhett]

reserved

[FicoMike0]

Sounds complicated, keep us posted how it goes.

[oorhett]

SSFCU: 

• Received multiple emails from Mercury Network to see the AVM appraisal, Which came in fine and puts me below 70% LTV 
• May 5th - Received a notice that I have a secure message waiting - 
  • the Message read "I received the commitment for title and will need an explanation for the following liens shown on the report":
    • 2 Judgements - both the same judgment the original from 2011 and when it was renewed in 2019
    • The Private lien I need to payoff with this loan
    • Plus a notice from my current heloc lender asking to be notified if my 1st mortgage puts any notices on title (Not a Lien) 
  • I called and left a message and sent an email - explaining these
• May 6 - Processor emailed they would get my info to title 
• May 6 - Processor called me to go over title questions and request payoff information for the Lein I plan to payoff with the proceeds of this new HELOC - I asked how everything else was looking and she said well lets just go through and process the loan together --- suggested everything looks good just to get her the info to request payoff from the lein - Emailed contact info of lein holder 
• May 6th - Title company called me to discuss the judgements.  I explained that if they look at the dates of them, and then my BK discharge date, and then the date I took ownership of the property, that those Judgements are a non-issue, besides the fact that there have been 4 Title insurance policies issued on the property since then. She said they would look into it,  I asked about the other items, they weren't concerned with them. 
• This seems positive but have not heard any additional news  since 

NFCU/Navy 

• May 6th - Got a call from the processor "I need Cashiers checks or money orders from Sep 2019 to Mar 2024" (BK Discharge - current 30yr Mortgage) - I asked "Cashiers checks for what?" - She then explained she needs records of my housing expenses. I explained I have had a mortgage on my Credit since Mar 2021. and lived with family before that, she said ok I will talk to my underwriter and let you know. Recived an email asking for Any housing expenses Utilites, rent payments phone bills etc from Sep 2019 - Mar 2021. Unfortuantly all of that was in my wifes name and our utility service doesn't go back past 2023, Bank statements don't go past 2022 to show rent payments. So looking like this option is dead -
  • "Unfortunately, they would have to be in your name due to you being on the loan. I do apologize for the inconvenience. If we are unable to provide housing related costs from September 2019 to March 2021, and then the additional 2021 to current we will not be able to move forward with the loan"
  • "Per Navy Federal guidelines we must have the housing documentation due to the bankruptcy to show credit reestablishment. Once you hit the allotted 7-year time frame of the bankruptcy discharge, we would no longer consider the bankruptcy."

MACU

• May 2 - got a call from the Loan officer letting me know that there has been no activity on my application and unless I upload documents they will cancel it - I explained I am unable to upload any documents in their loan portal its just a list of items I have done - she resent the login invite and told me not to use my membership login ai needed to create a new one so tried that still didn't work so she requested I just email them to her so sent in:  
  • 45 days of Paystubs
  • Govt ID
  • Mortgage Statement ( current property ) 
  • 2023 W-2 Forms 
• May 6 - Loan officer  replied that I sent the 2024 W2 instead of the 2023 - So replied with 2023 W2 
• May 7 - Loan officer replied that she got it 

Signature CU 

• April 28 - I sent a secure message responding to Mortgage coordinator last email to let her know that I had signed the loan docs and asked about the possibility of doing a 20yr 2nd mortgage 
• May 2 - She replied that my DTI would be 58% and outside of guidelines 

[oorhett]

SSFCU: 

• May 12 - Sent an email to the title agent to see if the Title issues they had were resolved 
  • Received response same day: "We are all cleared up on our end. Nothing further needed from you at this time."
• May 14 - Received an email from SSFCU Mortgage closer - letting me know she was preparing documents for my line of credit, asking if I wanted to take a draw at closing, and that it takes 2 weeks for funds to be available after closing if I don't take a draw at closing. Also referred to another email with a settlement statement for me to sign, and how I would like to sign my documents electronically and/or in person Notary. 
  • Let them know my preferences they replied immediately and resent the settlement email for me to sign. 
  • Signed the settlement agreement showing closing costs of $1492.40 (this is covered by the CU as long as I keep the account open for at least 24mo) 
  • Recieved a call from the title company to schedule the closing for the next day May 15th!
• While the communication on this loan has been less than great, I am impressed by this lender coming through for me on this loan as the other lenders could not. 

NFCU/Navy 

• May 14 - Called to let me know that the lending manager is speaking with the underwtier about the Housing documentation they are requesting from my BK to 2021 when my first mortgage loan appread on credit - they also informed me that they would need to move my loan amount down to $128,000 for me to be in their guidelines to qualify
  • We will see if they approve me but I am not planning on pursuing this other than to see if they will approve it 

MACU

• May 13 - Email to let me know they completed my Documents verification and determined that my DTI is too high and their guidelines only allow up to 40% DTI 
• No longer pursuing this lender  

Signature CU 

• May 12 Recived a letter dated May 9th from them to let me know that I have been declined for this loan.