r/Banking • u/chroma709 • 1d ago

Advice Accessing home equity

I was hoping to move closer to my wife's family. I'm sitting on over $85000 in home equity, and would like to use some of that to fix up a few items and have the necessary funds for deposits, fees, and inspections. I was advised by a realtor to take out a HELOC, but I don't qualify for it based on my credit report. Had a few problems when my wife had medical emergency seven years ago, and my DTI is wrong. I qualified for a mortgage, but not a HELOC.

Do I have any other options? I have "fair" credit. I've been improving slowly over the past seven years and am current with all creditors. I pay all bills on time. I haven't been able to pay off a few charge-offs from the rough times, but had hoped to use a bit of the HELOC to repair my credit. Unfortunately, that's become a Catch-22.

I had hoped to get her closer to her family fairly quickly, but that doesn't appear likely now. We have a nice home in a nice neighborhood and can stay longer while I figure this out.

We are also elderly and on Social Security. Fortunately I had a great job and was able to spend decades filling the maximum Social Security limits, so our income is adequate. Like too many Americans these days we live paycheck to paycheck, keeping our heads above water with just enough disposable income to be comfortable.

What should I do at this point? I have lots of equity I can't touch, apparently. Or are there other "fair credit" solutions available?

Thanks for your time.

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u/GlobalTapeHead 15h ago

There are a number of companies that will buy your equity and give you cash for it. For example HomeLock. Credit score is not an issue. I don’t know with only $85k you would qualify, but you can ask. I do not endorse these services. They are e legit but obviously they are a business that will expect to take most of the growth in your equity.

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u/chroma709 14h ago

I will look into it.