Home equity loan eligibility secrets homeowners must know now
Income and Debt Considerations
Your income level and DTI ratio are critical factors in determining your eligibility for a home equity loan. Lenders look for a stable income that can comfortably cover both your existing debts and the new loan payments. The DTI ratio, which compares your total monthly debt payments to your gross monthly income, should ideally be below 43%2. Meeting these criteria demonstrates to lenders that you have the financial capacity to manage additional debt responsibly.