Given the current economic and global pandemic state, Americans are looking into different ways to receive extra cash. If approved you can use it to pay debts or home repairs but you can also use it to cover unexpected medical costs. Sadly, due to COVID-19, this could be a big factor to get this type of loan. Yet, it’s important that you know what has changed for home equity loans during this pandemic.
Some credit unions like Navy Federal have stopped accepting applications due to the rising demand. However, some lenders are still accepting new applications. You should know that even though they are accepting, the requirements have changed and essentially gotten strictest. The biggest factor they are now looking into is credit. Lenders request multiple employment requirements to ensure the borrower’s credit. Yet, 23 million people and rising daily, have climbed the unemployment rate to new highs, proving difficult the employment verification process for lenders.
On the other hand, banks are limiting the amount of money and increasing credit requirements. This has also impacted the refinance industry since they are placing caps on the money they are willing to refinance. However, getting this loan right now could be difficult but not impossible. You can still search and find lenders that are accepting applications with the requirements that fit your need. Here’s a complete and updated guide from Money.com on the Best Home Equity Loans for 2021.
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