Home equity loan, best option?

[Candikane]

Hello, I'm looking for an equity loan primarily to pay off around $18k in credit card debt. I'd like to take a bit extra out for home improvements too, so looking for around $25k loan.

My DTI is outrageous due to the maxed out cards that will be paid off with the loan.

What are some of the best places to apply- quality places, and that won't include the cards in my DTI for qualifying? My Fico is around 705.

Thanks for any help.

[ddamage]

Following. Im looking as well.

[GreatLife]

My experience is the lender will directly pay creditors and you'll receive the remaining loan funds. DTI calculation won't include any debts to paid by the lender. You should be able to use the preferred FI of your choice. 

Years ago we used Quicken Loans which I think is now Rocket. IIRC the creditor payment amounts were required to be as appeared on our credit reports, everything was listed and detailed on our closing statement.

[Sbrooks1]

I had an awesome and easy experience with Discover. 

[DebtStinks]

Just as Greatlife mentioned, most will pay the creditors directly. Especially when factoring in your "outrageous DTI" most or all lenders would likely require this if you can't budget (based on their internal DTI guidelines) with the new loan and the existing creditor payments.

Regarding your FICO score, a large portion of home equity lenders don't use your Mortgage scores and rather your FICO 8 (or similar). As long as your score(s) used are in the low 700s due only to the utilization versus derogatory info, I'd say you stand a decent chance as long as equity and new DTI, job time, home condition, etc are in line.

I hope this helps.

If not, you may look into personal loan options with a lender like PenFed who has great rates that are almost in line with the best equity lending options.

[Candikane]

Thanks! Do you know if any of the fast services still qualify you with a high DTI, like Figure? Or would I need to apply only with places that do a full manual check?

[URHomeInvestments]

DH and I were denied by Figure with good FICO scores and high DTI.  They use an automatic valuation, had us upload documents, and they had an e-notary lined up if we were approved.  Numbers probably vary, but DTI must be under 50% and they prefer under 43%