In order to get a home equity loan, you need to have enough equity built in your home. The money you can borrow is calculated by a special formula. You should take about 80% of your house price minus the money you still owe. This means that you can get a home equity loan when you have already created some equity in the house.
By the way, get to know What Is Home Equity?
If you made a down payment of 20%, for instance, and have been making payments for the next two years, you are able to apply for a home equity loan.
You should choose the best mortgage equity deal as propositions may differ. Some lenders may even offer you to calculate up to 125% of your home equity, but such borrowing can be risky.
Remember that a home equity loan doesn’t much depend on your credit history, so you can get it even with a bad credit score. That is why it’s a good variant for people to improve their financial situation.