Qualifying for a HELOC
For the most part, qualifying for a home equity line of credit is a lot like qualifying for a mortgage. Your lender will want to see proof of income through tax documents and pay stubs, your credit history, and any records of your debts and assets.
However, there's one other piece that your lender will look at, as well: the amount of equity you have in your home. (Remember, equity is the percentage of your home that you own outright.) In this case, the amount of equity that you've built up by paying down your mortgage will play a key role in determining how much money you'll be allowed to borrow. Most lenders will only let you borrow against up to 85% of the equity you have in your home.
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