Do you need to have 3 month paystubs to pull out equity?

[George Otiono]

In 2015,

I was blessed and purchased a house. I recently discovered BiggerPockets and realized the equity in that house, which is now a rental property, is worth about $129K.

I do realize that I won’t be able to take out 100% of that equity. Because of the pandemic, I was out of a job, but the rental was still be paid.

I want to pull out equity to make another purchase but just started a job last month. My question is: Do I have to have three months worth of paystubs to pull out equity?

[Kyle J.]

@George Otiono While it's true that lenders usually only ask for 30 days worth of paystubs, it seems as if what you're really asking has more to do with the time you've been at your new job. In general, lenders like to see a two year job history. (It doesn't necessarily have to be at the same job, as long as it's in the same field.) Especially for conventional or FHA loans.

Now, if you're going to try to pull that equity out using a HELOC, well then there are no standard (Fannie/Freddie) rules for those. HELOCs are just products of the individual lenders that offer them, which means each lender can make up their own rules. So if you're going that route, I'd suggest calling the lender you intend to use and see what they think about your job situation before you get too far down the path, only to find out that underwriting isn't going to be okay with your current job history. Might save you some time (and frustration).

Good luck.