What Are the Lending Requirements for a Home Equity Loan?

Home equity loans have many of the same lending requirements as other loan products.

A verifiable income history, a good debt-to-income ratio, and decent debt.

In addition to these requirements, you must have a combined loan-to-value (CLTV) ratio of 85% or less in your home.

This means dividing the total balance of all your home loans by the present value of your home to reduce it to 85% or less.

For people without a mortgage, you have a 0% CLTV

This means that you definitely meet the CLTV requirement for a home equity loan.

Home Equity Loan With No Mortgage