Quickest home equity loan?

8 Replies

I am financing a foreclosure. However I am thinking of possibly getting a home equity on my current house in case there are issues with the financing. My question - does anyone know any places go get a fast home equity loan? My bank says 8-10 weeks. Is that a lot higher than average? I might need more like 2-3 weeks. I am in Maryland. I'm not sure if the rules allow recommend specific lenders, if it's not allowed just some general advise would be great!

@Dave Brooks 8-10 weeks on a HEL for your personal home??? You should absolutely look elsewhere. Typically, the loan process shouldn't take more than 30-45 days from start to finish. If you are looking into a HELOC, it should be about a 72 hour turn around time. Obviously, these time frames are determined how quickly you can provide documents to the financial institution.

Originally posted by @Josh Mitchell :

@Dave Brooks 8-10 weeks on a HEL for your personal home??? You should absolutely look elsewhere. Typically, the loan process shouldn't take more than 30-45 days from start to finish. If you are looking into a HELOC, it should be about a 72 hour turn around time. Obviously, these time frames are determined how quickly you can provide documents to the financial institution.

Thanks for the reply. Why is a HELOC so much faster than a home equity loan?

@Dave Brooks these are consumer loans, and the process does not involve as much paperwork. Since you already own the asset, you just need to have the amount of equity available (typically up to 90%), and your income verified. You can do these for a lower closing cost as well, but you are not provided the long term, fixed rate.

Originally posted by @Josh Mitchell :

@Dave Brooks these are consumer loans, and the process does not involve as much paperwork. Since you already own the asset, you just need to have the amount of equity available (typically up to 90%), and your income verified. You can do these for a lower closing cost as well, but you are not provided the long term, fixed rate.

@Josh Mitchell

Thanks for the reply. So a HELOC can be set up fairly quickly? What is the maximum you can take out? Are they usually less than a home equity loan? For instance if my house is paid off and worth $380k, is it up to 80% of that? Also where would be a good place to start to figure out the best bank to get one from as far as needing it within a couple weeks? Thanks.

@Dave Brooks try bankrate.com maybe as a start. Usually there is a max dollar limit as well as a max LTV ratio. Up to 80% is one rate, and up to 90% usually a lot more expensive, but again, there may be a dollar limit as well (my credit union out here maxes out at $250k regardless of LTV ratio).

There's an appraisal that has to be done as well, that's usually the longest part of the process. 8-10 weeks sounds too long.

If you're already in escrow and financing though, expect the hard credit check to raise red flags.

@Dave Brooks as @Marco G. mentions, on a HELOC you are able to go up to 90% but it will be more expensive. If you have all of your paperwork, it will be fairly simple on your end, but again as Marco mentions, the appraisal process will be the longest part. You could request a "rush" order appraisal, but that may come with a higher fee associated with it as well. Appraisal process should typically be finished approx. 10 business days after the inspection if not sooner.

@Marco G. and @Josh Mitchell

Thanks for the replies. What is my best way to figure out how long various banks will take to close a HELOC? Just start calling around? I feel like I will never get a good answer from the big banks if I call customer service. Possibly smaller banks I can get routed to the right person to get an answer? Or would a mortgage broker in my area (Maryland) maybe know a good spot?

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