Home Equity Lending Back in Business

Smart Money is reporting that banks are making a push back into the business but are only catering to pristine type of borrowers.

Three different banks told the publication that home equity lending is up at least 20% across the board. At Associated Bank, the average home equity loan, taken once as a lump sum, is around $75,000; at Citizens, the average credit line on a HELOC, which borrowers can tap over time, is around $100,000.

That’s enough for cash-strapped homeowners to pay for renovations or home repairs – especially if they’ve decided to stay in a house they can’t, or don’t want, to sell in the current market. “We found an opportunity that we can take advantage of,” says Val Glytas, director of consumer lending at Associated Bank.

However, not all borrowers will have access to the loans.  In order to qualify, borrowers need at least a 720 FICO score, a minimum of 20% equity in the home, and income verification for the last two years.  One requirement some borrowers not prefer is the HECM Counseling, but the new product has plenty advantages and is easier to qualify compared to a traditional home equity line of credit.

However, not all borrowers will have access to the loans.  In order to qualify, borrowers need at least a 720 FICO score, a minimum of 20% equity in the home, and income verification for the last two years.  One requirement some borrowers not prefer is the HECM Counseling, but the new product has plenty advantages and is easier to qualify compared to a traditional home equity line of credit.

This entry was posted in Pension Lump Sum. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>