Line of credit on house?

rospaw

Senior Member
Sister inlaws sister got divorced a few years ago. She has a home paid for, clear title worth about 150-175k. She has no employment but has some money saved. Been living off savings for the last few years. Good credit with no amount on any cards/loans. She was wanting to either get a line of credit using the house or ? Wanting 30-50k with a payment around $500. How can she do this if she even can? She is wanting to use most of it on new roof, pool repair ect. Thanks
 

Miguel Cervantes

Jedi Master
Without a source of income how in the world does she intend on paying it back?

Personally, in that situation I most certainly wouldn't use the home as security for repairs she can't pay for. That could cost her the house if she defaults on the loan.
 
I was going to say it's just a matter of going to the bank and filling out the paperwork, but with no income I don't see how that's going to fly. You may or may not be able to get a loan but I wouldn't touch it without knowing how I was going to pay it back.
 

GoldDot40

Senior Member
As strict as the regulations are these days...she can forget it without a verifiable job.
 

rospaw

Senior Member
She has about 30k still and will be getting a pretty good amount in the near future (with in 5yrs) that will have her set for a long time. She was just worried about using her living money to do upkeep.
She has other means (family) if she gets in a bind/behind. She is good person and has always taken care of her biz. Brother said she has 60k avil on three cards that have no balance and never had a balance. Divorce put a damper on her but has always been A+ on bills, kids, family ect. 18yrs of what she thought was a solid marriage as a housewife messed her up a little. Gave up a good career 12 years ago due to him and kids.

Thought there might be a lender that looks at the house equity as her insurance that it will be payback. I didn't think there was but brother asked me if i would look into. Monday i will go by my bank (smaller bank) and ask if they have a program.
 

NOYDB

BANNED
She can make any credit arrangement an investor will agree to.

She does not have to mortgage her house if she doesn't want to.

A possibility is a Balloon note due in five years when she comes into her money.
 

rayjay

Senior Member
How about a part time job ???? Or even a full time job ??? Avoid debt AND get her back into life again.
 

westcobbdog

Senior Member
BTW, around 90% of the time, I see the person who cashes out their Ex spouse ( at a retail valuation ) and keeps the house get hosed on the house when the market swings or their employment swings, then they are left with an asset worth less than the payoff.
 

KyDawg

Gone But Not Forgotten
I don't think her borrowing money, to get things like a pool, and depending on money she may or may not get in the future, is a wise choice.
 

elfiii

Admin
Staff member
As strict as the regulations are these days...she can forget it without a verifiable job.

This. ^ The lender is going to want to see a steady income stream sufficient to pay off the loan. A lot of HELOC's require the loan be paid off in full for a minimum of 30 days once each year. Otherwise the lender is going to want to do a term loan.
 
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