What are the requirements for a home equity loan?

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asked Jun 6, 2018 in Other-Finance by Scottui (400 points)
What are the requirements for a home equity loan?

1 Answer

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answered Jun 6, 2018 by Gracy (132,100 points)
A home equity loans is a loan where you borrow money against the equity you've built up in your home.

You'll need at least 15% to 20% of equity built up in your home before you can qualify for a home equity loan.

Your credit score will need to be 620 or higher and you'll need a debt to income ratio of 43% but it could be as high as 50% depending on the lender.

Another thing you'll need to show is that you have a strong great history of paying all your bills on time.

If you meet all the requirements to get approved for a home equity loan then you should be notified within 30 to 45 days of approval of the home equity loan.

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