Looking for HELOC, fast closing

[Just1Starfish]

Hello, 

I'm in North Carolina.  I have a primary VA mortgage at 2.75% so I'm definitely not looking for a cash-out re-fi.  I'd like to get a HELOC for some major repairs that can start work within the month if I can get this done quickly.  My credit score is in the 780's.  I'm looking for a HELOC of around $35-40K, no more than $50K, but definitely a draw type, not a lump sum loan.   My mortgage balance is $455K, the mortgage originated in July 2021.  Stable employment, greater than 10 years at the same place.  The value of the house now is probably about $590K according to Zillow. 

I'm willing to speak with lenders who can close quickly. I'm tech-savvy and can do anything online if needed, would actually prefer that if possible. 

Thanks! 

[cashorcharge]

I suppose it would depend on what you considered "fast"

Absolutely...completing the application online...especially if it's with an FI you already have business with would potentially be easier and potentially quicker as they know who their dealing with.  

When I did this, despite having an estimated value of over 100% of my mortgage balance...they still had to do their due diligence, research and then schedule an onsite/in-person appraisal of the property.  I was there with the appraiser, answered questions and took it upon myself to provide comps in the neighborhood that had recently sold matching the specifics of my home to justify the amount I was seeking.  The appraiser aligned to my estimation of value and then paperwork had to get done, notarized etc.  In all, it took about 50 days to complete.  They did state at the time they were "busy" so part of that was likely due to limited staff with lots to do.  This was also a few years back when rates were lower and real estate transactions were in heavy rotation.  Nowadays, this may be quicker.

[mau471]

It's definitely a YMMV situation, but we did a HELOC through DCU last year, from application to closing was 28 days and honestly I am not sure they can go a whole lot quicker. We could possibly have shaved a couple days off but not much. They were easy to work with and their rates are one of the best I have seen, overall we are very happy. The only slight downside is they only do transfers and checks, there is no debit card, but we have just put stuff on CC's where possible to get the rewards and then pay the cc bill with the loan where needed.

Depending on actual LTV, appraisal etc may chage that timing, with the HELOC we were still under 50% LTV so it was really easy for us. The appraiser was kind of a joke, they didn't even turn onto my street, just took a picture from down the road and circled our house in the photo and our appraised value was the exact dollar amount of the "zestimate", he said there are no comps depsite the neighborhood still being under active constructions with new houses selling weekly. Maybe he would have been more thorough if the LTV was higher and obviously this is very much dependent on the appraiser. I just thought it was funny how much he phoned it in and they accepted it.

[markbeiser]

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@mau471 wrote:

The appraiser was kind of a joke, they didn't even turn onto my street, just took a picture from down the road and circled our house in the photo and our appraised value was the exact dollar amount of the "zestimate"

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I had a similar experience, but I think the apprasal was done from 200 miles away using Zillow and Google Street View.
I actually got an email with the appaisal results the day before I got the email telling me an appaisal was being done!🤣
It probably helped that my LTV with the remainder of my mortgage + $100k HELOC was around 50%, certainly helped get the prime+0% rate.