Access Hidden Wealth Through Traditional Home Equity Loans
How to Qualify for a Home Equity Loan
Qualifying for a home equity loan generally requires a good credit score, a stable income, and sufficient home equity. Lenders typically prefer borrowers with a credit score of at least 620, although some may have more flexible requirements. Additionally, you'll need to demonstrate your ability to repay the loan, which often involves providing proof of income and employment3.
The amount you can borrow is usually determined by the loan-to-value (LTV) ratio, which is the amount of your existing mortgage balance compared to your home's current market value. Most lenders allow an LTV ratio of up to 85%, meaning you can borrow up to 85% of your home's equity4. For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, you may be eligible to borrow up to $85,000.