Requirements for a HELOC
Some homeowners access the equity in their home by applying for a home equity line of credit or HELOC. In many cases, they do so to handle unexpected expenses. If you own a home and you have equity in the home, you can be approved for a HELOC by your lender. You get about twenty years to pay off the balance and since this is a revolving line of credit, you can keep using it during this borrowing period. There are certain requirements to getting approved for a home equity line of credit.
You must have at least 15 percent and up to 20 percent of equity in your home. The value of your home is dependent on the appraisal done. The lender will typically use their appraiser to get the current value of the home. The equity in your home will determine the amount of money you will be allowed for the line of credit.