Wait 6 months after refi before qualifying for HELOC?

3 Replies

I've been trying to get a home equity loan or line of credit and have just been told by one lender that I must have made 6 payment on my first mortgage since I refinanced. I refinanced my FHA first mortgage in February to get a lower rate, but that did not allow cash out. The first payment was made on Apr 1, so this lender is telling me I have to wait until October to get a second? Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC?

Originally posted by @Malcolm Ovenden :

I've been trying to get a home equity loan or line of credit and have just been told by one lender that I must have made 6 payment on my first mortgage since I refinanced. I refinanced my FHA first mortgage in February to get a lower rate, but that did not allow cash out. The first payment was made on Apr 1, so this lender is telling me I have to wait until October to get a second? Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC?

HELOCs aren't like 30YF first position mortgages where you can call 10 different lenders and all are within 0.25% to rate with very similar requirements.... each bank is making up whatever they want for the HELOC in terms of conditions, requirements, rates, etc.

Call around. It's a HELOC. Each lender will be very different.

@chris 

@Chris Mason nailed it. Call around. My current list for friendly HELOC terms is Wells Fargo, TD Bank, TD Ameritrade, and M&T Bank, Your local regional banks and credit unions are good options as well. HELOCS on your primary tend to go up to 95%, but the higher the LTV, the higher the rate. Good luck!