HELOC or HOME EQUITY w/ lower score

[Chan2022]

I'm trying to renovate my basement and rent it out for additional income. I really want to do a HELOC or home equity loan instead of refinance but my FICO 2 & 4 are not high enough - Equifax 580 TransUnion 600 and Experian 640. Does anyone know of a bank that would grant one of these type of loans with my scores? #heloc #homeequityloan 

[tcbofade]

The good news is that typically, a HELOC or loan will use your Fico 8 scores, not your mortgage scores.

Do you know if you Fico 8 scores are higher?

DW and I used a local CU for a HELOC and they pulled TU 8 score.

Good luck!

[Chan2022]

Thanks for the reply!

Yes, my fico 8 for all 3 bureaus are much higher. Not at 700 yet but close. 

I appreciate the info!

[homeloanexpert]

@Chan2022 

What are your FICO 8 scores? What state is the property located in?

[Chan2022]

Good morning!

My fico 8s are

Equifax 680

Trans Union 656

Experian 656

My home is in Georgia 

[Revelate]

Home equity loans are underwritten on the standard mortgage trifecta.

HELOCs can be underwritten on basically anything but it can be one score and usually the one in house that the lender uses for credit cards and others except at the large banks where a common mortgage pull is more likely anecdotally.  Look for a CU that you can get into that pulls a FICO 8 score generally and that may be your best bet.

[joxnard805]

Hello,

which credit union is that? my fico 8 is higher than newer fico versions.

Thanks

[Revelate]

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@joxnard805 wrote:

Hello,

which credit union is that? my fico 8 is higher than newer fico versions.

Thanks

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Trawl through the credit card approvals forums for CU approval threads; scores and bureau / model were generally posted and you can probably see what's what on some of them.  You only need one that's not geofenced, but I haven't kept track in a while of who's pulling what.  

[kapp]

Chan2022, any luck?  If so which lender?

[Chan2022]

Hi! 

I'm still running into an issue getting approved but the best thus far has been Regions Bank. They only use Trans Union and I don't even think they use Fico 8. Whatever they use, it scores higher than Fico 8. 

My Fico 8 is 656 but the report they sent me has it listed as 713.