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Old 07-25-2008, 06:04 PM
 
Location: Minnesota
959 posts, read 1,571,692 times
Reputation: 753

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We were just informed that Wells Fargo will only give up to 85% (it may even turn into 80%) for their HELOC's. I am so sick of being punished because someone else messed up and now everyone has to pay for it.

Kristine
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Old 07-25-2008, 06:16 PM
 
2,639 posts, read 5,056,610 times
Reputation: 2346
85% of home value or 85% of equity amount?

In either case that's generous, considering other lenders who have frozen them altogether, or dropped them to 50% or even lower.
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Old 07-25-2008, 06:26 PM
 
Location: Minnesota
959 posts, read 1,571,692 times
Reputation: 753
85% of the home amount. I guess I am just mad because the people who messed it up for everyone are all getting these sweet deals on their new mortgages and someone who has stellar credit and has been responsible their who lives, has to jump through hoops just to get a simple HELOC.

Kristine
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Old 07-25-2008, 06:29 PM
 
2,639 posts, read 5,056,610 times
Reputation: 2346
Well, Wells Fargo has been praised for being one of the few lenders who seems to have weathered the storm well. It's probable that they did some internal audits of their HELOC customers and found the initial signs of a possible trend...and are trying to head it off at the pass before it gets out of hand.
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Old 07-25-2008, 07:13 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
Reputation: 503
Most lenders have done the same, 85% LTV is the max I have seen for HELOCs lately. Same with many "cash-out refinances", Fannie and Freddie are capping the max LTV on these as well.
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Old 07-26-2008, 03:53 PM
 
Location: Los Angeles Area
3,306 posts, read 3,324,115 times
Reputation: 592
80% LTV is more the norm in historic terms, the banks are just going back to the standards they know were stable. I guess you'll need to find another way to buy your pony.
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Old 07-26-2008, 07:57 PM
 
Location: CNJ/NYC
1,240 posts, read 3,641,764 times
Reputation: 408
Considering housing trends the lower LTVs are a hedge against falling real estate values. Makes sense to me.
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