What is the credit score required for HELOC?

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  • August 26, 2023 at 8:59 pm #12003
    Team StellarFi
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    A FICO® Score of 680 or higher is recommended for a home equity line of credit (HELOC). A HELOC is a kind of second mortgage you can take out against the equity of your home. Equity is how much of the home you actually own: the amount you will receive after paying off your remaining mortgage as per the current market value of your home.
    Lenders usually let you borrow up to 80% of your home equity. You need to repay this loan through fixed installments. If you miss or fail to make these payments, you may end up with a foreclosure.

    There is no minimum set credit score you need to get approved for a HELOC. Some lenders may require a higher credit score. Some may even approve your loan with a score of less than 680. This depends on your income and cash reserves as well as currently owed debts. Your credit score is an important but not the only factor that decides your odds of approval for loans.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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