PenFed HELOC document request

[Arcreactors]

In the process obtaining a HELOC through PenFed. Today, I was assigned a loan processor and they requested several documents for underwriting. One of the requests was for a mortgage statement showing the payment was made for Aug 2021 and May 2022. Thought the August date was odd. Any idea why? Also, I've never had a 30 day late. I do have a history though of paying somewhere between the 12th and 20th of every month. Do they just want to see I have made the payment or will they disqualify me for being "late". Or do they only consider late being over 30 and on credit report? Seems to me they just want to verify I'm current and that the payment was made. Just trying to ease my mind a little. I won't be able to talk to anyone over there until Monday morning. 

[compassion101]

It sounds to me that they are just trying to verify it was paid. For lateness, I imagine they would base that upon your credit report if you were dinged for a late. What kind of rate/terms are you getting from PenFed?

[Arcreactors]

Yeah, no lates at all on my report so should be fine. As far as rates, looks like .99% for first 6 months then 4% plus prime. So 4.5%. Traditional 30 year...10 year draw, 20 year repayment. I haven't gotten that far yet so don't know for sure but that's what was discussed with me. 

[compassion101]

What LTV are they offering?

[Arcreactors]

They go 80% - 90% and its determined by your credit score. I plan to document and post my experience with all the details and requirements. I've researched a ton but no solid answers to a lot of things. 

[TheKid2]

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@Arcreactors wrote:

They go 80% - 90% and its determined by your credit score. I plan to document and post my experience with all the details and requirements. I've researched a ton but no solid answers to a lot of things. 

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It would be great if you posted about your experience.

Do you know what score they used? I assume it was EQ 5 since they are known to use EQ exclusively.

[Arcreactors]

It was for sure Equifax but not sure which version. They require a minimum of 660. 

[DSTforlife]

PenFed uses EQ Beacon 5 for their HELOC qualification.   

As a data point, I started my HELOC application with PenFed (my mortgage is also with them).  Although they didn't ask for multiple months mortage statements, I pay the mortgage on the 15th of each month and they didn't blink an eye.  I cancelled my app with them because the hybrid appraisal came in much lower than other lenders.  We closed with another lender in April 2022.

[Arcreactors]

@DSTforlife  Thanks for the info! I was able to speak to them this morning. They needed August and May statement because they said it wasn't showing on report. I know May isn't because it is too soon, but not sure why August didn't show up. Our hybrid will be low also. We have a 1600 square ft finished basement that wont show on anything they pull. We fully expect to go through with a full appraisal if the hybrid comes in low. I think it would be this way for any lender for our situation though. So far, everything seems on track and the processor seems to think all will be fine getting an approval. I am within guidelines on all so far. Everything should be submitted by end week for initial approval. fingers crossed!

[DSTforlife]

good luck to you!  we are finishing our basement with our HELOC.  we chose to go the HELOC route because we plan to pay off the entire balance within 2 years....and we wanted to keep the tradeline available for other future uses.