Flipper/Rehabber · Torrance, CA · Member since 2021 · 17 posts · 5 votes
What should I expect to get out of a HELOC if my primary residence has about $350,000 in equity? So far I,ve only been approved for $45,000 but that seems low. Anyone got any tips/advice?
Real Estate Agent · McAllen, TX · Member since 2017 · 382 posts · 281 votes
5y
Hello Mr. Arroyo
For the most part, lenders will give you a heloc until you hit an 80% loan to value ratio. Example, If your house is worth $400k and have $350k in equity you should qualifty for $280k (400*.8 = 320 - 50kdebt = 280).
Lenders have become more strict so this might be part of the problem. Definetely ask a lender up to what ratio they are willing to go up to before going through the whole process next time.
Flipper/Rehabber · Torrance, CA · Member since 2021 · 17 posts · 5 votes
5y
@Polo Vazquez the fact that I still owe $400,000 on the house and my payment is $1,630 I think is what is holding me back. Make $70,000 a year but have no debts.
Lender · Phoenix, AZ · Member since 2018 · 440 posts · 256 votes
5y
@Mauricio Arroyo Did the bank give you a reason? That seems very low given your equity position. Your DTI might be a factor, but if the home is your only debt, your DTI should be fairly low. What's you're monthly payment? No child support or anything?
Flipper/Rehabber · Torrance, CA · Member since 2021 · 17 posts · 5 votes
5y
@Justin Phillips no other debts other than my mortgage which is $400,000 balance and $1,630 a month. I asked and that is really the only reason I'm only approved for $45,000
@Justin Phillips no other debts other than my mortgage which is $400,000 balance and $1,630 a month. I asked and that is really the only reason I'm only approved for $45,000
$1630/month for taxes, insurance and a loan of $400,000?
@Polo Vazquez the fact that I still owe $400,000 on the house and my payment is $1,630 I think is what is holding me back. Make $70,000 a year but have no debts.
Ahhhh yes! It is your debt to income ratio. Basically they take all your payments (including car, credit cards etc) and devide it by your income and this number has to be above a certain number. In other words, you either have to make more money or get rid of some payments.