Looking for HELOC in Texas

[Shirley McLean]

I will need to get a HELOC very soon to do renovations on a house that has 100% equity (paid in full). How do I find a good lender with the best rates? The property is in Northeast Texas and I am self employed so taxes don't show strong income but have good credit. I know credit unions offer best rates in general but how do I narrow it down from there and what should I look for? Also, I read that if you pull out over a certain amount ($50k?), it hits your credit score differently than if it is a smaller amount. Smaller amounts are seen as a line of credit like a credit card and will appear to your credit that you are maxed out in that account. Larger amount is weighted as a loan and not a credit line. True? If so, what is the amount that determines this?? Thank you.

[Jim Cummings]

@Shirley McClain. The HELOC is based on Value of the property. Once you're Approved - you can use the monies most anyway.

I've used a HELOC to pay property taxes rather than take from other investments) buy automobile, etc. With a 100% FREE & CLEAR property - should have no difficulties getting approved - presuming you have current income to make payments.

Don't get bogged down in Analysis Paralysis - but there are some positive changes coming in Texas HELOC (Proposition 2 on Texas Ballot - voting tomorrow) should give you ability to borrow more of your equity.

Good Luck!

JIM