Caught an article this morning about banks making it harder to get a HELOC lately. Apparently, some lenders are raising credit score minimums and even requiring more equity in your house than before. I guess with interest rates being all over the place, they’re getting nervous? Has anyone here tried to apply recently and run into new hoops to jump through? Curious if it’s just hype or actually happening.
Yeah, it’s not just hype. I’ve seen it firsthand—tried to tap some equity for a flip and suddenly my usual bank wanted a higher credit score and a bigger cushion in the property. Lenders are definitely skittish with rates jumping around. It’s not impossible, but you’ve gotta have your ducks in a row right now. Used to be way more straightforward.
Yeah, I’ve been running into the same thing lately. Last year, I was able to pull a line of credit on a duplex I’d renovated—no problem, paperwork was pretty standard, and the bank barely blinked at my numbers. Fast forward to this spring, and it’s like they’re looking for reasons to say no. I had a lender ask for a second appraisal, then wanted to see six months of reserves, and even grilled me about my other projects. Never used to be that intense.
I get why they’re cautious with rates bouncing all over the place, but it’s definitely making things trickier for folks who rely on equity to keep projects moving. I’ve got a buddy who’s been flipping for years, and he said his HELOC got cut back by almost 30%—no warning, just a letter in the mail. That kind of thing used to be rare.
It’s not all doom and gloom, though. Some smaller local banks seem a bit more flexible if you’ve got a relationship with them, but even then, they’re asking for more documentation than before. I guess the days of easy money are on pause for now. Makes me double-check every number before I even think about applying.
Funny thing is, I remember back in 2017-2018, banks were practically throwing money at anyone with a pulse and a halfway decent property. Now it feels like they want to see your whole life story before they’ll even consider it. Not saying it’s impossible, but you’ve gotta be ready for a lot more hoops.
Now it feels like they want to see your whole life story before they’ll even consider it.
That line made me laugh because it’s spot on. Last time I tried to tap into some equity, the paperwork stack was almost as thick as my mortgage application back in 2012. It’s wild how quickly things have shifted. I get that banks are trying to cover themselves with all the rate swings, but sometimes it feels like they’re just looking for a reason to say no.
I’ve noticed the same thing with local banks being a bit more open, but even then, it’s not what it used to be. I remember when a decent credit score and a clean property report were enough—now they want to know about every penny you’ve got stashed away and every project you’ve touched in the last five years. Makes me think twice before starting anything new.
Honestly, I’m just glad I’ve always kept my numbers tight and my paperwork organized. Not much room for error these days... or for optimism, if I’m being real.
Title: Banks tightening up on home equity lines—anyone else notice?
I’m with you on the paperwork mountain—last time I looked into a HELOC, the checklist from the bank was like something out of an audit. I get why they’re doing it (nobody wants another 2008), but it’s starting to feel like only the ultra-qualified even have a shot now. It’s not just about credit score either. My neighbor got turned down because his house “needed too many updates.” Nevermind that he’s never missed a payment in his life.
What gets me is how inconsistent it is from one lender to the next. Some are clamping down hard, others act like nothing’s changed, but the rates are all over the place regardless. I’ve been running the numbers and honestly, by the time you factor in the higher closing costs and stricter requirements, it barely feels worth it unless you really need the cash.
It’s definitely made me more cautious about taking on new debt just for renovations or whatever. If they’re this tight now, who knows what hoops will pop up next year?
