To answer the question directly, neither issue you raised is likely to cause an issue when attempting to secure a Home Equity Loan. That being said, each lender has different guidelines depending on their portfolio needs.There are obviously several different outlets to get one, but I would probably start at your local bank. Question: Does she want to take the money out directly or just have a line of credit available in case of emergencies? That's an important difference because in a HOME EQUITY LOAN, the money is distributed in a lump sum similar to a traditional mortgage. A HELOC is a (Home Equity Line of Credit) which is essentially a giant credit card. If she wants the money all at once, it is better for her to go with a traditional mortgage product and neither of the issues you raised involving her discharged bankruptcy OR the credit score would affect her ability to get a traditional 30 year mortgage either. Most people looking at a Home Equity Loan in this situation do so because it sometimes appears to be cheaper than going the traditional mortgage route. At least, that is how someone offering home equity loans would frame it. The reality is that appearances can be deceiving and although everyone's situation is understandably different.. chances are it may not be the best thing for her for the following reasons:1. Often there are no UPFRONT costs to doing a home equity loan, but those savings are actually passed on to the consumer via higher than market rates, variable rates with shorter fixed terms, and pre-payment/ early termination penalties. 2. Congress is actively discussing removing the home interest tax credit. Although it seems unlikely to happen for traditional mortgage products, there is a strong market feeling that it's a real possibility for home equity products. This would mean that potentially we could see some significant changes regarding the tax advantages associated with the interest on these loans.Obviously you would want to do your own research and speak directly to a tax advisor for any specific questions regard this potential issue.I would be happy to speak with you more about your mother in law's situation. If it turns out that a Home Equity is the way to go, then I will do my best to connect you with someone who will make the process easy for your family. Either way, if I can help.. I'm available.Thanks for the great question. .

If your mother in law is 62 yrs or older she maybe able to use a reverse mortgage to accomplish the same goals to cashout equity. A discharged BK would not matter as reverse mortgages are not credit based. Another key difference is she could choose when and if she wants to make payments. Feel free to call and discuss further: 866-640-5722 ext.126 I find the reverse mortgage to be a better option as it doesn't require the burden of a monthly mortgage payment. You can also be in a BK and get a reverse mortgage with court approval.

While you may find a lender that will offer a HELOC under those terms, you are much more likely to find one that will offer a traditional mortgage. HELOC's are much harder to get than they were a few years ago, being offered mpostly by banks, and having stricter credit guidelines. A traditional cash out refinance would likely work in its place. The other option, depending on your mother-in-law's age would be a reverse mortgage, which has no credit requirements. Contact me directly if you'd like more info on any of those three options, as we offer all of them.

Please contact me and my name is Ana from First USA Home Loans at 1-877-472-9887. We do have several programs that can help her get a home equity loan but it depends on the state as well because each state has its own limit so please contact me.

Credit, Bk and loan to value won't hurt her chances of getting a line of credit one bit at all. As in Lending thier are the 3 C's of credit character capacity and collateral. She will qualify for 2 out of the 3 already. She has the collateral and the character piece. Only thing that you need to look at now is her income in relation to her debts going out a//k/a debt ratio. She could also qualify for a traditional mortgage refinance. The advanatge to the HELOC is that she only pays interest on the amount of money that she owes at any one given time. The disadvantage to the HELOC is that the rate is adjustable and is tied to prime rate, typically interest rate caps on lines of credit are in the 18 to 21% range. So at some time in the future the rates will increase.IF she goes with a traditional mortgage she can lock in at a very low interest rate. Then put the money that she doesn't need to use today in a money market, CD or some other type of investment vehicle that will help offset the interest that she is paying.IF she is over age 62 she may wish to look inot a reverse mortgage. You can get a line of credit with a reverse mortgage as well. NO payments are required on the reverse mortgage.

Hello. I have access to a Home Ownership Accelerator loan that works just like a Home Equity Line of Credit (HELOC), but has the benefit of being able to be paid off at a much accelerated rate without paying any more than she would normally pay, due to the special features it has.Please call for more information, but YES, they are still available.Patrick McCarthy, Northpointe Bank, 866-901-3576