do I have to wait to get a HELOC if I just purchased house?

Guest 0.10 Dollars($)

I have called two companies to see if I can get a home equity line of credit and both have recommended for me to wait 6 months to a year!
My credit score is about 520 due to the lack of a second income from my divorce. I just recently purchased the home about a month ago and have recieved my appraisal report showing the house is worth over 20,000 more than what I paid but no-one will work with me. I have a full time job and am willing to fill out full document paperwork and have even applied to two companies via internet but both said not now.

ANy suggestions?

Guest 0.10 Dollars($)

Your score seems to be too low. I think you need to do some rigorous shopping before you can land up with the full doc heloc.

adonis · Posted: Mon Sep 24, 2007 8:03 pm Post subject:

Mia,

Did you ask the lenders why they asked you to wait?and i'm surprised how did you pay more than what your home is appraised for?

sara · Posted: Mon Sep 24, 2007 8:09 pm Post subject: RE: denied on full doc heloc

Hi Mia,

The reason for lenders denying the heloc is that, you have just purchased the home with a mortgage. Now when you start paying for the loan, you will be able to build up equity. And, only after building up equity for number of months, you can apply for the heloc. This is because such loans are offered against your home equity. So, take some time and improve your score while you build up equity in your home. And, then hopefully you can get a good rate on your loan.

Take Care

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Mia,

When your credit score is too low, I think it is better if you first improve it and then go for a loan. With a better score, you will be able to qualify for your desired loan program. To know about how to develop your credit score, you may refer to http://www.mortgagefit.com/credit-rating/credit-repair.html

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