Home Equity Loan

Home Equity Line of Credit - do 5k lines of credit exist?

This is my first home that I've owned and I've had it abt 18 months. I've already replaced the AC unit which killed my investment account but I had a sick cat ruin the already old flooring. I have 8k in equity in the house but the minimums I've seen are for 10k in equity. Do $5k home equity line of credits exist?

Public Comments

1. The answer is absolutely yes. Some banks will put a minimum amount on a home equity line because they want you to borrow more (it could lead to more money for them); however, most small banks will offer a Home Equity Line of Credit (known as a HELOC) for any amount that you request. Smaller banks will be more willing to make a smaller loan and more apt to bend to your demands. If you have trouble getting someone to make you such a small HELOC, then ask them if they will refinance your house and give you the HELOC. A bank may be more willing to do the smaller loan if you are bringing them larger business overall. You may find that a bank is willing to refinance the first mortgage for a lower rate and save you money overall. Good luck!
2. Why would you want to take out a secured loan for such a small amount. Why put your house up as collateral when you can get an unsecured credit card for that much. If you have good credit why not just get one of those cards they keep sending you offers for in the mail that have an interest free period. Even after the interest free period you may qualify for a rate comparable to that of a HELOC and you won't have the hassle of it being connected to your home should something happen Good Luck