Lenders are making home equity loans more accessible to home owners, as market conditions continue to stabilize across the United States.
According to a report published in June by the Office of the Comptroller of the Currency, one in five lenders nationwide eased their underwriting standards on home equity loans, while another 68 percent kept their standards unchanged from 2011.
In 2009, in the midst of the housing crisis, lenders kept a tight grip on their underwriting standards with not one of the 87 banks surveyed easing up in 2009. A whopping 78 percent actually tightened their standards that year.
In addition to more accommodating standards, lenders also appear to be lowering the necessary equity levels and credit scores needed to qualify. According to industry experts, this could be especially true for lenders servicing areas with higher appreciation rates.