Hack Home Equity Line Credit Requirements Like a Pro

To qualify for a HELOC, lenders typically assess several factors to determine your eligibility:

1. **Equity in Your Home**: Most lenders require you to have at least 15-20% equity in your home. This means if your home is worth $300,000, you should have paid down at least $45,000 to $60,000 on your mortgage¹.

2. **Credit Score**: A good credit score is crucial. Most lenders prefer a score of 620 or higher, but a score of 700 or above can secure better interest rates².

3. **Debt-to-Income Ratio (DTI)**: Lenders typically look for a DTI of 43% or lower. This ratio compares your total monthly debt payments to your gross monthly income³.

4. **Income Verification**: You'll need to provide proof of stable income to ensure you can repay the borrowed amount. This usually involves submitting pay stubs, tax returns, or bank statements.