With today’s economy, and subsequently the housing market, it is harder and harder to have the home equity line of credit “cushion” that has been popular with homeowners for many years.  The instability of the market and loans going unpaid have caused many financial institutions are becoming more and more stringent on their loan approvals.  Even with having the good fortune of being able to utilize such a credit line, you will be paying much more interest than you would have even just a year ago.

In most states, the following is what you will be expected to document and provide proof for most lenders to qualify you for a HELOC (Home Equity Line Of Credit):

• A credit score of at least 720 (it is important to stay on top of them!)
  
• A stable income that can be documented (either with pay stubs or tax returns or both)
  
• Proof that you have more than 20% equity in your home (appraisals would qualify)
  
• A healthy combined debt-to-income ratio (you are not borderline for having too much going out versus what you have coming in)
  

The following items are now usually required to qualify for a traditional first mortgage:

• The monthly payment (including interest, tax, insurance and common fees) must be 31% or less of your gross monthly income (that you can provide documentation for)
  
• Proof of a healthy combined debt-to income ratio (this includes car loans, payments on credit cards, child support, store credit accounts, etc). If this monthly debt is over 38% of your monthly income, you will not be eligible.

If you would like to prequalify for a loan to see how much you can put towards a home, please feel free to fill out our Private Loan Application or you may call or e-mail us directly.
Info@TheShultzTeam.com or call us direct at 352-291-1276.

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
* FREE OCALA MOVING TRUCK WHEN YOU BUY OR SELL THROUGH THE SHULTZ TEAM! *

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