HELOC - Need Advice on circumstance

[Andy C.]

Hi BP,

My wife and I are looking to get a HELOC or home equity line of credit on our Primary Home Care in San Mateo / Bay Area, CA.

The challenge that we are running into right now is that we had a credit score ding because of a late payment. Subsequently as a result of talking to two of the larger institutions they cannot underwrite because of this. That being said, we are in great financial standing with steady W-2 income and multiple investment properties that generate great cash flow for US. However I've been told that because of strict underwriting regulations the larger institutions we'll have trouble looking past this.

Has anyone experienced a situation like this before and can potentially point us in the right direction with any thoughts, advice or recommendations on where to look next? Feel free to PM if easier to communicate.

Much appreciation advance.

[Tyler Rowland]

HELOCS do have stricter standards because they are open lines of credit and have adjustable rates. Most that I know of require at least a 680 Credit score minimum, not to mention no late payments in the last 12 months. Take some time to build some good credit and let that late payment work itself out. Keeping credit cards at or below 25% of the credit limit will help keep that credit score up to its optimal level the next time you apply for a HELOC.