How Soon After Buying a Home Can You Obtain a Home Equity Loan?

Asked by: of Durham, NC on 2012-07-29T01:13:54Z

Best Answer:

It all depends on each bank's policy. I have come across some banks such as New Penn who could do as early as 1 month. But again the LTV vary and rates etc. often vary. So basically terms maybe be different for each program various banks offer. Most of them call for 1 year. But you can do it earlier if you can handle less than 80 LTV based HELOCS. Its ideal for Cash deals. Now one more thing you may want to consider is that most of the banks would consider the actual purchase price as appraised value in the first year even if you got a steal deal. While there are some banks/CU such as PenFed may consider tax values as well as reference. For current offerings and rates Call around and check. No harm checking right :Good Luck.

2012-07-29T01:49:33Z

It all depends on each bank's policy. I have come across some banks such as New Penn who could do as early as 1 month. But again the LTV vary and rates etc. often vary. So basically terms maybe be different for each program various banks offer. Most of them call for 1 year. But you can do it earlier if you can handle less than 80 LTV based HELOCS. Its ideal for Cash deals. Now one more thing you may want to consider is that most of the banks would consider the actual purchase price as appraised value in the first year even if you got a steal deal. While there are some banks/CU such as PenFed may consider tax values as well as reference. For current offerings and rates Call around and check. No harm checking right :Good Luck.

2012-07-29T01:49:33Z

It's less a matter of time since the house was purchased than of equity you have in the home. Unless you have at least 20 equity high credit scores and and income that indicates you're ability to carry both the house note the full payment should you choose to max out your equity line and any other regular monthly payments you may have you're unlikely to be approved of a HELOC Home Equity Line of Credit loan.

2012-07-29T10:44:18Z

There is no cut and dry answer to that. You have to have equity in the property to take money out though.

2012-07-30T16:38:59Z

Listen to Raj down below. Usually you can get a line of credit as soon as title is recorded but this will probably vary by bank or Credit union. I would contact your local credit union and see what their requirements are. Raj is correct though when he says they will go off of lowest of appraisal or sales price... unless you can show and document the rehab you have to done to justify the higher value. Good Luck

2012-07-31T21:07:59Z

How soon can I take out an equity or line of credit on a property just acquired. There is currently no mortgage balance and money is needed for remodel purposes. Looking for about 30k on an appraised value of 150k

2015-08-26T14:37:55Z