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Updated over 6 years ago on . Most recent reply
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Wait 6 months after refi before qualifying for HELOC?
I've been trying to get a home equity loan or line of credit and have just been told by one lender that I must have made 6 payment on my first mortgage since I refinanced. I refinanced my FHA first mortgage in February to get a lower rate, but that did not allow cash out. The first payment was made on Apr 1, so this lender is telling me I have to wait until October to get a second? Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC?
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Originally posted by @Malcolm Ovenden:
I've been trying to get a home equity loan or line of credit and have just been told by one lender that I must have made 6 payment on my first mortgage since I refinanced. I refinanced my FHA first mortgage in February to get a lower rate, but that did not allow cash out. The first payment was made on Apr 1, so this lender is telling me I have to wait until October to get a second? Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC?
HELOCs aren't like 30YF first position mortgages where you can call 10 different lenders and all are within 0.25% to rate with very similar requirements.... each bank is making up whatever they want for the HELOC in terms of conditions, requirements, rates, etc.
Call around. It's a HELOC. Each lender will be very different.