Home Equity Line Of Credit (HELOC) Question

[Lalainya Rawlings]

Lily has a house worth 600k with no mortgage. Will a bank lend Lily the full 80% in a HELOC, or cap the limit? Will Lily's DTI affect how big the credit line is?

Thank you!

[Forrest Faulconer]

Originally posted by @Lalainya Rawlings:

Lily has a house worth 600k with no mortgage. Will a bank lend Lily the full 80% in a HELOC, or cap the limit? Will Lily's DTI affect how big the credit line is?

Thank you!

Hi, some banks have HELOC limits (for example $500,000), Some vary on LTV (70-80%), and some vary on required DTI (ex. 43-50%). However, there seems to be more flexibility on DTI with a HELOC.

So anytime you start a question with "will a bank", the answer is always, "it depends on the bank." So your best bet is to call around to some banks and see what they offer.

Forrest Faulconer