New FHA Regulation for HELOCs

[Flavio Zanetti]

Folks,

I was in the process of increasing my HELOC limit when BoA mentioned there is a new FHA limitation on HELOCs where the total number of mortgages someone can have in order to have a HELOC (bear in mind I was just trying to increase the amount) is now 5.

Do you know of any banks that do not have this same limitation for a HELOC?

Before you ask, I do have over 500K in my primary home equity plus A+ credit score, plus savings, etc.

Thanks,

Flavio

[Stephanie Medellin]

@Flavio Zanetti I'm a little confused about this being an FHA limitation. The FHA doesn't insure HELOCs.

Your lender might have a limit on the number of mortgages you can have in order to qualify for a HELOC - that's certainly possible.

With that much equity you can also just refinance and take cash out. If you currently have an FHA loan with monthly mortgage insurance you can refinance to a conventional loan and eliminate that.