Home equity loan - groups.Xorte.com

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Number of messages in the thread: 5

1. Date: 2007-09-30 23:06:06
Subject: Home equity loan
From: Alpha83 <t...@g...com> Search message by this author

A friend of mine recently lost his job - he owns a home and it has
some equity on it. Can he apply now for a home equity loan and tap
into that for some cash or is this possible only if you have a job.

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2. Date: 2007-10-01 00:51:32
Subject: Re: Home equity loan
From: joetaxpayer <j...@n...com> Search message by this author

Alpha83 wrote:
> A friend of mine recently lost his job - he owns a home and it has
> some equity on it. Can he apply now for a home equity loan and tap
> into that for some cash or is this possible only if you have a job.

It depends on his credit rating (FICO score), amount of equity in the
house, and bank he chooses.

This is why the advice here is often repeated: To line up the HELOC
while things are good. It's easy to get credit when you don't need it.
JOE

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3. Date: 2007-10-01 18:09:22
Subject: Re: Home equity loan
From: kastnna <k...@a...org> Search message by this author

Would you give money to someone that currently has no way of repaying
the loan? I wouldn't.

Mortgage officers use debt to income ratios as a basis for loan
approval (among other things). An income ratio of zero pretty much
kills your chances. Perhaps if he can convince the mortgage officer
that he has multiple job prospects lined up, he'll have a chance, but
don't count on it. High FICO scores and spousal income (if applicable)
will help.

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4. Date: 2007-10-01 18:30:52
Subject: Re: Home equity loan
From: joetaxpayer <j...@n...com> Search message by this author

kastnna wrote:
> Would you give money to someone that currently has no way of repaying
> the loan? I wouldn't.
>
> Mortgage officers use debt to income ratios as a basis for loan
> approval (among other things). An income ratio of zero pretty much
> kills your chances. Perhaps if he can convince the mortgage officer
> that he has multiple job prospects lined up, he'll have a chance, but
> don't count on it. High FICO scores and spousal income (if applicable)
> will help.

So to repeat a bit of advice for others: there's value in setting up a
HELOC when you are able, both due to income and equity in the home.
There's a perfect world where one always has the emergency fund to
bridge gaps between jobs, but that's not possible for everyone. A new
roof or new transmission can kill that account for those who tried. And
let's not forget, a 401(k) loan isn't an option for most people who lose
their job.

JOE

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5. Date: 2007-10-02 01:22:40
Subject: Re: Home equity loan
From: kastnna <k...@a...org> Search message by this author

On Oct 1, 1:30 pm, joetaxpayer <j...@n...com> wrote:
> So to repeat a bit of advice for others: there's value in setting up a
> HELOC when you are able, both due to income and equity in the home.
> There's a perfect world where one always has the emergency fund to
> bridge gaps between jobs, but that's not possible for everyone. A new
> roof or new transmission can kill that account for those who tried. And
> let's not forget, a 401(k) loan isn't an option for most people who lose
> their job.
>
> JOE

Agreed. The worst plan is no plan and most HELOCs cost less than $50/
yr. to keep open. At this point, there's not many options. Perhaps a
friend or family member can help out for the time being.