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How soon can I get a home equity loan?

I purchased my home about 3 months ago and would like to get a home equity loan to finish up some home improvements. My home is worth $12,000 more than the purchased price. Advice please! by gu3489179 from Baltimore, Maryland. Sep 6th 2017 Reply


Jamie Ware (YourMortgageGuy)
#73 ranked lender in Pennsylvania - 44 contributions

I would check with your local bank or credit union. I believe from what you have disclosed it might be too early unless you put down a big chuck of money when you purchased

Sep 6th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

More info needed, but in general, most, if not all home equity lenders or 2nd mortgage lenders require that the "Combined Loan to Value" not exceed 80%.. There might be a few local community banks or credit unions that might go as high as 90% CLTV.. but I doubt it.. Keep in mind that 2nd position loans are much more riskier for lenders.. therefor they require a higher quality borrower and position before they will lend. But I cannot advice you specifically on your scenario because I would need more details.. Example: you purchased a home for $300K, and put $100K down.. now you wish to get a Home Equity Line of Credit (HELOC).. Since the lender would be capped at 80% CLTV, then you could apply for a $40K HELOC. ($200K 1st loan + $40K 2nd loan =$240K or 80% CLTV. But if you put the minimum down of 3.5% to 5%, then there are no 2nd loan products available to you until the value increases significantly.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Sep 6th 2017
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