Do you *have* to wait 6 months before taking out a home equity loan?

My husband and I are in escrow for a house. We would like to remodel the kitchen with a home equity loan (we are buying the house for well under the market value). Is there any way to take out a loan on part of the equity before 6 months?

There is no specific time period that you must wait before getting a home equity loan. Instead, you need to wait until you have enough equity in the home to cover the amount of the loan.

If your current first mortgage is for 80% or more of the purchase price then it is unlikely that you will have enough equity for a home equity loan at this point. You will have to wait until you have paid off some of the loan or the value of the house has increased.

If your current first mortgage is less than 80% of the purchase price then you may be able to get a home equity loan immediately. Speak to a lender to find out if you qualify yet for a home equity loan.

Absolutely, you can buy the house for under market value, and then get it re-appraised, and follow up with a home equity loan right after. Just becuase you baught it for a certain price does not mean thats the Real value of the house. I could sell you a house for $500, it does not mean its worth only $500. 1st step is to get it appraised again. Hoep this helps.

Talk to your lender about it now. Don't wait.

Oh honey, if you're buying the house for under market value - you don't have *instant equity*, you've just dropped the value of your house to what you've paid. AND you've dropped the value of all the homes in your neighborhood. Be prepared for angry neighbors. :(

You're not going to have any *equity* before 6 months, sorry!

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

No way

Sorry.