Eligibility Test Secrets Top Home Equity Loan Strategies

Eligibility Criteria for Home Equity Loans

To qualify for a home equity loan, lenders typically require you to have a certain amount of equity built up in your home, usually at least 15-20%. Additionally, most lenders look for a good credit score, typically above 620, and a stable income to ensure you can manage the loan repayments. Your debt-to-income ratio (DTI) is another critical factor, with most lenders preferring a DTI of 43% or lower¹.