HELOC with fair credit

[mandlas]

I am looking for a HELOC as I need to do home renovations. My home has plenty of equity current market value $1m and owing $390k on first mirtgage and $102k on the silent HUD covid mortgage (no payment no interest until house sold). My score are EQ 665, TU 618 and EX624. My last mortgage late was 12 months ago. Where can I get a HELOC or home equity loan for $70k? I'm self employed but have income that would result in housing D/E ratio of about 45% after HELOC (assuming 8.5% interest).

[ShanetheMortgageMan]

Unless you plan on paying off the HUD partial claim lien with the new HELOC, you'd be looking for a HELOC that goes into 3rd position on title which is pretty rare.  I only know of one that will go into 3rd position and they require 680 minimum score and will go up to 70% of the home's value.  Are you willing to pay off the HUD partial claim lien?

There are HELOC's that will go down to a 620 score but they'll only go into 2nd position, meaning you'd have to pay off the HUD partial claim lien with it.  

[mandlas]

Thanks for the response. I'm curious on the HELOC that will take 3rd place lien. It may be worth getting my mud score up to 680. But right now I will plan on paying of the HUD lien, which institutions would do a HELOC at FICO 620?

[ShanetheMortgageMan]

The HELOC lender that'll go down to a 620 score only works with mortgage brokers, but there very well could be some retail lenders/banks out there that'll go that low.  

[mandlas]

Ok I prefer brokers, banks have proven to be difficult especially for self employment. I'm looking for a good broker if you have an recommendations.