My mother in law is looking at a $100k Home Equity Loan on her $200k home, which is paid off.Her BK was discharged 2/2005, is there a lender that allows a HELOC? Her score is 660

To answer the question directly, neither issue you raised is likely to cause an issue when attempting to secure a Home Equity Loan. That being said, each lender has different guidelines depending on their portfolio needs.There are obviously several different outlets to get one, but I would probably start at your local bank. Question: Does she want to take the money out directly or just have a line of credit available in case of emergencies? That's an important difference because in a HOME EQUITY LOAN, the money is distributed in a lump sum similar to a traditional mortgage. A HELOC is a (Home Equity Line of Credit) which is essentially a giant credit card. If she wants the money all at once, it is better for her to go with a traditional mortgage product and neither of the issues you raised involving her discharged bankruptcy OR the credit score would affect her ability to get a traditional 30 year mortgage either. Most people looking at a Home Equity Loan in this situation do so because it sometimes appears to be cheaper than going the traditional mortgage route. At least, that is how someone offering home equity loans would frame it. The reality is that appearances can be deceiving and although everyone's situation is understandably different.. chances are it may not be the best thing for her for the following reasons:1. Often there are no UPFRONT costs to doing a home equity loan, but those savings are actually passed on to the consumer via higher than market rates, variable rates with shorter fixed terms, and pre-payment/ early termination penalties. 2. Congress is actively discussing removing the home interest tax credit. Although it seems unlikely to happen for traditional mortgage products, there is a strong market feeling that it's a real possibility for home equity products. This would mean that potentially we could see some significant changes regarding the tax advantages associated with the interest on these loans.Obviously you would want to do your own research and speak directly to a tax advisor for any specific questions regard this potential issue.I would be happy to speak with you more about your mother in law's situation. If it turns out that a Home Equity is the way to go, then I will do my best to connect you with someone who will make the process easy for your family. Either way, if I can help.. I'm available.Thanks for the great question. .

Hello. I have access to a Home Ownership Accelerator loan that works just like a Home Equity Line of Credit (HELOC), but has the benefit of being able to be paid off at a much accelerated rate without paying any more than she would normally pay, due to the special features it has.Please call for more information, but YES, they are still available.Patrick McCarthy, Northpointe Bank, 866-901-3576