 TITLE: How Does a Home Equity Loan Work? CONTENT: Who Is Eligible for a Home Equity Loan?\n---------------------------------------\nWhile the equity in your home is yours to borrow, you still have to qualify for a home equity loan. Qualification requirements vary by lender, but in general you'll need a FICO® Score☉ that's at least in the mid-600s. If your score is 700 and above, you'll have a greater chance of getting a home equity loan with good terms. Most lenders will also check your credit report, looking for consistent loan and credit card payments and a lengthy history of handling a variety of accounts responsibly.\nIncome is not listed on a credit report, so the lender will separately assess your debt-to-income ratio (DTI). This is the sum total of your monthly debt payments divided by your gross income. That number should not exceed 43%, but the lower your DTI is, the better.\nYou will also need to have sufficient equity in the home: Most lenders will require at least 15% to 20%. END