According to an article from www.bankrate.com I saw in the Real Estate section of the Palm Beach Post today, it’s not quite as easy to borrow against your home equity as it was before the recession. Even though you have equity in your home, you may not meet the requirements necessary for a home equity loan, hone equity line of credit (HELOC), or a cash-out refinance. If you need cash to fund a home improvement project, buy a boat, or pay for your daughter’s wedding, make sure your credit score is high and your debt to income ratio is favorable.
If you are looking to get a home equity loan, lenders generally require an 85% loan to value ratio (LTV). In other words, 15% equity. For home equity lines of credit, lenders usually require a 75% LTV, or 25% equity.
There is a lot more information in the article, and you can read it in it’s entirety by clicking on the bankrate.com and Palm Beach Post links in the first paragraph.