Millions of Americans Need Cash — But Borrowing Against Your Home Is Getting Tougher
With the U.S, economy shut down, and millions unemployed, now might seem like the perfect time to tap your home for emergency cash. But it's not as simple as it looks.
About 45 million homeowners are sitting on real estate equity worth $6.3 trillion. That works out to about $140,000 per borrower—money that could come in very handy for paying bills during the coronavirus crisis.
But potential home equity borrowers won’t find it as easy to borrow as they might have before the COVID-19 pandemic. Lenders are tightening their credit standards, particularly with regard to home equity lines of credit, or HELOCs, and home equity loans. “They’re worried about getting repaid,” says Ralph McLaughlin, chief economist at the San Francisco-based lender Haus.
