Applying for a HELOC loan is extremely difficult in today’s market. Lenders have already trimmed lines and they’re anxious about taking on new borrowers, especially those without a stellar financial record.

NY Daily News reports:

“Looking to get a loan for school? A car? A house? Fat chance.

Billions of dollars have flowed into bank vaults, but billions of dollars are not flowing out, at least not to borrowers — at least not yet.

Most banks are making fewer loans and employing stricter standards on borrowers than they did a year ago, despite the multi-billion dollar bailout of the financial industry.”

On the positive side, many major lenders such as Countrywide are continuing to advertise for new HELOC customers. Most lenders only want the best-of-the-best, but they’re willing to put some money in to find these credit worthy clients.

photo credit: TheTruthAbout…

See Also:

Home Sales Increase. Good News for Your Equity?

Will Federal Rate Cuts Affect Your HELOC APR?

Tags | Countrywide, finance, Heloc, heloc crisis, home equity line of credit, mortgage crisis