Great deal on foreclosure wondering about equity line (interest rate, approved, credit)

[kt_mom]

My husband and I just got a fantastic deal on a foreclosure. The bank accepted our offer today. The house was sold in 2006 for upper 200's and we got it for less than 200. The house is in good condition as far as we can see other than some cosmetic work that we will do. The sale is contingent on a home inspection but we don't anticipate any problems with that.

Housing prices in our area haven't fallen nearly as much as other places across the country. It seems only the really high end homes have been affected. Anyway, we were hoping down the road to take out a small home equity line to finish off some space in the basement but were unsure if they were still available or if how hard they have gotten to obtain.

Any info or advice would be great. Thanks!

[middle-aged mom]

Originally Posted by kt_mom

Housing prices in our area haven't fallen nearly as much as other places across the country. It seems only the really high end homes have been affected. Anyway, we were hoping down the road to take out a small home equity line to finish off some space in the basement but were unsure if they were still available or if how hard they have gotten to obtain.

Any info or advice would be great. Thanks!

Given your question is projected at some future unknown date, you are asking for speculation.

No one knows how quickly your home will appreciate in value, liquidity of credit markets or future interest rates, at some unknown future point in time.

[dad2jules]

Depending on your down payment you may want to open an equity line at the time of purchase. I have lenders still going up to 90% on 2nd mortgages either at time of purchase or later here in NC. They are more difficult to get approved for than in the past but certainly not impossible.