Factors to consider before submitting a HELOC loan:
1. Is there a non-occupying co-borrower?
2. Is the draw amount less than 75% of the high balance?
3. Is the property a 2-4 unit second home?
4. Has the property been listed for sale in the last 6 months?
5. Is the property greater than 10 acres?
6. Is it a rural property?
8. In the last 4 years, has the borrower had a mortgage in forbearance with missed payments or that was modified?
9. Has the borrower had more than one late mortgage payment in the last 24 months?
a. If the borrower has had one late mortgage payment in the last 24 months, was it within the last 6 months?
10. Are any borrowers not vested on title as of the loan application date?
If you answered YES to any of the questions above, the loan does not meet guidelines.