Comments on: After purchasing a home, how long must I wait before I can be approved for a Home Equity Loan?

By: northstar40601

northstar40601 — Sat, 19 Dec 2009 05:14:01 +0000

Immediately.

By: ~Laura~

~Laura~ — Sat, 19 Dec 2009 05:14:01 +0000

You can take a home equity loan once you’ve made your first mortgage payment. However, to do so, you must have equity in the home you originally financed. Some lenders may take into consideration the fact that you’re buying another investment home and tally in the value of that home.

Good Luck with your investment!

By: Retired

Retired — Sat, 19 Dec 2009 05:14:01 +0000

Your in luck my nephew who is a mortgage broker is here picking up my boat to go fishing. He said most houses are going down in value these day so it is highly unlikely a bank would do this unless you had other accounts or had an outstanding credit rating.

By: mike1942f

mike1942f — Sat, 19 Dec 2009 05:14:01 +0000

Well, let’s see – A Home Equity Loan is a loan on the equity you have in your home. After you buy your home, you have no equity in your home because you have just started paying it off. So you have to wait until you have paid in enough money to actually have some equity!!
A better move would be to convince a mortgage lender that by improving the property, you would increase its value so the lender agrees to put money in the mortgage loan under certain conditions to cover repairs and improvements. We had a whole historic neighborhood recovered because a local bank was willing to take a huge house with a sale price of $40,000 and loan $75,000 on it for professional repairs. Because of the rising market at that time and the quality of the homes, the results were homes valued at $200,000 or more, now worth $750,000 plus.
Of course, it really helps to have a rising market which we don’t right now.

By: Robert D

Robert D — Sat, 19 Dec 2009 05:14:01 +0000

It would depend on whether or not you got a good deal when you bought the house. The real estate climate would dictate whether you had any equity or not. Equity is much like stock, it goes up and down in value. In California at this time in most areas, it is pretty flat. You might actually take a negative equity and go a little upside down. It is a crystal ball guess at this time. My crystal ball says about a year before prices rise.
My crystal ball was made offshore!