I need a HELOC that is not likely to check for flood insurance requirements. Probably no way to guarentee that, but maybe one that is nationwide with no local branches (i'm in california) and very busy. I was thinking Penfed, but my primary loan is with them and I dont want to risk them requiring flood insurance for that. I am barely in a flood zoned, so I need one that really wants my business and might decide that the flood insurance isnt all that important.

Hello all,
I am wondering which banks/CU are more liberal (relatively)??? We have been rejected by Penfed, Alliant, and East West Bank... I am just wondering is it that all banks are more conservative now, or is it just the ones I have applied to???

Background:
Property Value: 450K
Deed has my parents and I on there
My father and I are 1099s (self employed)
Father earns about $20K/yr salary and $50K/yr commission
I have $60K/yr self employed
Mother is working as caregiver ($600 a month)
All our Credit scores are 790ish

current mortgage= $40K ($590 per month)
asking for $250K HELOC

also, would paying off the mortgage help? Thanks!
Disadvantages:

SUCKISSTAPLES said:You didnt say what the current mortgage amount is, how big a heloc you are trying to get, who is going on the mortgage, what debts they have reporting on their credit, etc.

Thanks SIS..
okay...
the current mortgage is about $45K
I am trying to get $250K HELOC (to buy another house...)
Current mortgage is only under my dad's name... but house is under my parent's and my name
Our debts: the $45K Mortgage, $4K in Discover 0% BT, nothing else other than CC balance which we pay off the entire amount every month...
Thanks again

gwu1986 said:What was the reason Penfed, et al, turned your HELOC application down?

Hi, thanks for the help..
here's Penfed's reason:
"Income insufficient for amount of credit requested.
Excessive obligations in relation to income (overextended)."

would paying off the $45K mortgage help (with our emergrncy funds???)

Thanks again

gwu1986 said:It appears your 1099s are not being utilized by the mortgage co. OR, With a 137k income: as 20k+50k DAD+60k SON+7.2k MOM, was this income documented, I cannot imagine why Penfed et al would deny you a heloc or hel with the above numbers. What income were they using? Mom and Dad only; or You & Mom&Dad?

Maybe ask them to add your income to qualify, be sure to have no ccs reporting, and verify your cr if clean before you apply.

That is what I am thinking: that our 1099s are not being considered.... I gave them my parent's combined tax return and later on added mine also (which includes my wife with $40K/yr federal permanent employee)... I have no explanation for the rejection other than no considering our 1099s at all... But they did tell me that Penfed is one of the more "conservation" lenders...

I am to the pt of considering paying off the current mortgage to reduce the "obligations"...

I have access to all our credit reports.. but I am not sure what is ccs reporting (I will google that and report any findings)...
Thanks!

P.S. What I don't understand is this: The HELOC requires only interest every month even if we take the full $250K, it would not amount to much. Also, should we fail to pay, it wouldn't be too hard to foreclose a $450K for $250K....

gwu1986 said:what did the property appraise for? That may be the problem bc 45k 1st + asking 250k = 67% of a 450k appraised value. If the property appraised for less, then there is the problem.

For Penfed, and Alliant, they did not even do an appraisal... I just submitted my own appraisal from before (ordered by another HELOC application performed about 4 months ago)... That appraisal has our house at $475K... Zillow has the value at $526K...