Last month I closed on a HELOC and the local bank looked at credit scores, DTI, and income. They also had an appraisal done. Then they tied it all together to see where it would fit in as an 80%, 90% or 100% for value line of credit.
The local bank does not go much outside their geographic area and is strict on documentation. They proved everything and it took about four weeks (processed much like a home loan). Found they do not do many of them in my area (mining) and suspect their conservative approach is due to the cyclic nature of the global mining world.
As a poster up thread said it well and then referenced the need to search out another lender. Glad I was able to use the approach. Not for every one. Also, agree with the up thread poster about your present financial looking challenging to potential lenders.
Old bank adage, go borrow money when you don't need it. For me that has held true. 
@dmason2580 wrote:We recently were denied for a HELOC by our local bank (Florida) and the whole process is a tad confusing. Hoping that if we share our experience, someone here could recommend a next step for us, as we defintely still want a HELOC option. We are not in an ideal scenario from a credit health perspective. We have average to below average credit scores, high DTI ratio, and about $300k in home equity. The reason we were given for denial was that the risk score did not meet requirements while in underwriting. TIA for any feedback.
Details:
Credit scores- for myself and spouse, in the 660 to 699 range.
Income- w2 employment, total $285k base + $70k annually in bonuses
Mortgage- we refinanced our mortgage in Feb.2022, orignated in 2018. Currently owe $440k at 3.375%. Recently appraised at $755k. Monthly payment $3250.
HELOC goal- pay off CC debt. Total $67k. Monthly minimum payments equal approx. $1600 per month.
Random facts:
We are carrying a high amount of car loan debt, and most if it is new credit lines opened in most recent 12 months. A total of $3200 in payments monthly, with a loan total of $195k.
Personal loans- one at $12k, $385 payment monthly with PenFed.
For any fintech that uses AVM, we have a possible problem. Our homes estimated value on Redfin is $657k and Zillow $365k. The Zillow guesstimate has always been off, for atleast the last 5 years, due to the county erroneously filing a land lot purchase of $50k under our address a few years ago. We have tried to get Zillow to correct it based on the appraissals, but no luck. Not sure if it matters.
Student Loan- one loan at $20k, in interest only payment now as student is in school, payment $90 per month.
My suggestion would be to go to a good credit union and see whether a HELOC or a refi would give you the best deal.
