HELOC giving bank reason for loan

[vstelfox2000]

What is the name of your state (only U.S. law)? Minnesota

Do I have to have a septic reason why I need the money like purchase 1 item or can I still get a HELCO loan for various things I need to take care of?

 

[OHRoadwarrior]

As long as you meet the loan criteria, they could care less why you want the HELOC. The things you need to be aware of are the draw period is shorter than the repayment period. It converts to a mortgage at a less than favorable rate. It can be called for any reason indicating insolvency.

 

[vstelfox2000]

As long as you meet the loan criteria, they could care less why you want the HELOC. The things you need to be aware of are the draw period is shorter than the repayment period. It converts to a mortgage at a less than favorable rate. It can be called for any reason indicating insolvency.

What do you mean draw period? Can I take one big lump some at once to purchase what I need? Or do they only give little amounts at a time?

 

[OHRoadwarrior]

You file for a certain max amount. You can withdraw up to the max amount at any time until the draw period is over. The draw period can be as little as a few years or as long as a decade or so.

 

[vstelfox2000]

You file for a certain max amount. You can withdraw up to the max amount at any time until the draw period is over. The draw period can be as little as a few years or as long as a decade or so.

Thank you been very helpful

 

[vstelfox2000]

Do I have use my current mortgage company for a HELCO loan? Or can I use a different company.

 

[OHRoadwarrior]

You can use any company that will grant one.

 

[ecmst12]

Not likely that any bank will give you a line of credit when you're not even current on your mortgage.

 

[quincy]

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