The days when people advise homeowners to keep a $50,000 home equity line of credit (Heloc) open as a monetary cushion, are over. As the economy, and subsequently the housing market, have fallen mortgage companies are making it much more difficult for people to qualify for home loans. If you do manage to wualify, you will pay much more than you would have even just a year ago. In most locales, the following is what you will be expected to document for most banks to qualify you for a Heloc:

• A FICO of at least 720
• A stable income that can be documented
• Solid proof that you have more than 20% equity in your home
• A healthy debt-to-income ratio

The following things are now generally required to qualify for most first Home Loans:

• The payment (PITI) must be 31% or less of your gross monthly income
• Proof of a healthy combined debt-to income ratio (including credit card payments and auto loans). If your monthly debt is over 38% of your income, you will not be eligible.