ELOC and Assumption... does order matter?

[Brookenstein]

What is the name of your state?CA

We borrowed some money from my parents and would like to get an equity line of credit to pay them back. I would also like to get an assumption to take my name off of the house (probable divorce, I'm moving out of state). We were working on the ELOC when I found out that my husband would have to actually qualify for the loan again for the assumption. (Initially I was told it was just paperwork, with me agreeing to take my name off, since I'm a SAHM with no income.) We decided that the ELOC may hurt his chances of getting the assumption, so we have now started the paperwork for the assumption. I was shocked to hear that it could take up to 45 days to do.

I guess my main question is, does the assumption have to be complete before we can do the ELOC or can we do both concurrently? I would really like both taken care of by Christmas, but don't know if that timeline is a pipe dream.

 

[Ciarraine]

What is the name of your state?CA

We borrowed some money from my parents and would like to get an equity line of credit to pay them back. I would also like to get an assumption to take my name off of the house (probable divorce, I'm moving out of state). We were working on the ELOC when I found out that my husband would have to actually qualify for the loan again for the assumption. (Initially I was told it was just paperwork, with me agreeing to take my name off, since I'm a SAHM with no income.) We decided that the ELOC may hurt his chances of getting the assumption, so we have now started the paperwork for the assumption. I was shocked to hear that it could take up to 45 days to do.

I guess my main question is, does the assumption have to be complete before we can do the ELOC or can we do both concurrently? I would really like both taken care of by Christmas, but don't know if that timeline is a pipe dream.

Qualifying for the assumption (or rogation, as it may be called) is probably being done based upon the income your husband earns, the debts he has, and the value of his assets, including the equity in the property. A Home Equity Line of Credit (HELOC) will reduce the equity in the property relative to the size of the outstanding mortgage debt (increase the loan-to-value) and thereby make it harder for him to qualify for the assumption. Get the assumption done, then move on to getting a line of credit if you want one.