Curious about how to get a HELOC with a co-applicant? Prosper can help. If you’re a homeowner, you may have wondered how to get a home equity line of credit to access the equity in your home. While some may think that equity guarantees you access to a home equity line of credit, or HELOC, it does not mean you qualify for one. Learn more about what a HELOC is and how it works. In this post, we’ll cover how to get a HELOC with a co-applicant.
To qualify for a home equity line of credit, you’ll need more than equity in your property. Your current income level, credit score, and credit history all play a part. A lender may deny your HELOC application because of your income level or a red flag on your credit report.
While low income and poor credit could be roadblocks, there are ways to boost your HELOC approval chances. Here, we’ll cover how to get a home equity line of credit by applying with a co-applicant.
How to Get a Home Equity Line of Credit with a Co-Applicant
Your co-applicant, sometimes referred to as the co-borrower, is a trusted person who’ll share the liability for repaying your home equity line of credit. The co-applicant assumes equal ownership, payment and overall responsibility for the loan payments.
When considering how to get a home equity line of credit, you might seek out a reliable co-applicant with a solid credit history or a higher income than yours to improve your approval chances. Often, people choose to co-borrow with a partner or spouse to qualify for a larger loan than either one of the individuals could get on their own.
How a Co-Applicant May Help You Get a HELOC
Having a co-applicant on a home equity line of credit application could benefit you as the borrower. A co-applicant with good credit could help a primary borrower with shakier credit get HELOC approval. A co-applicant may also help secure it at a lower interest rate. Not only that, you might be able to access more equity in your home by applying for a HELOC with a co-applicant.
If you’re thinking about how to get a home equity line of credit to consolidate debt or pay for home renovations, consider adding a trusted co-applicant to your HELOC application to increase your approval chances.
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HELOCs through Prosper may not be available in all states. Please carefully review your HELOC credit agreement for more information.
All HELOCs are underwritten and issued by Spring EQ, LLC, an Equal Housing Lender. NMLS #1464945.
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