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Non-QM HELOC — Lendia California

What Credit Score Is Required for a Non-QM HELOC?

Non-QM HELOC credit requirements are more flexible than conventional HELOC programs, but credit score still matters — it affects both your eligibility and the terms you receive.

Typical Minimum FICO for Non-QM HELOC

Most Non-QM HELOC programs in California require a minimum FICO score of 640–680. Some programs may go lower, particularly with strong compensating factors such as low LTV and significant liquid reserves.

Credit Score and LTV

As with most HELOC products, the maximum CLTV available to you is often tied to your credit score. A borrower at 720+ FICO may access higher LTV than a borrower at 640 within the same Non-QM program. Lendia can show you the specific LTV matrix for the programs you qualify for.

Credit Events

Non-QM HELOC programs are generally more accommodating of prior credit events than conventional programs:

Bankruptcy: typically 1–2 year seasoning required (vs. 4–7 years for conventional)
Foreclosure: typically 2–3 years seasoning (vs. 7 years for conventional)
Short sale: similar to foreclosure seasoning

Compensating Factors

Non-QM lenders evaluate the overall borrower profile — not just the credit score in isolation. Strong reserves, low LTV, and stable income can compensate for a lower score or past credit events.

Typical Minimum: 640–680 FICONon-QM HELOCs are more flexible on credit than conventional programs, particularly regarding prior credit events. Contact Lendia to review your scenario.

Reading the credit-event timelines

The seasoning periods above run from specific dates, not from when you started rebuilding. For a bankruptcy it usually means the discharge or dismissal date; for a foreclosure or short sale, the completion date. Gather the paperwork that proves the date, because lenders often ask for it. Where a program allows the lower end of a range, it generally comes with other strengths in the file.

What helps and what hurts

Helps a lower score	Hurts a higher score
Lower combined LTV	Recent late payments
Meaningful cash reserves	High revolving balances
Stable, well-documented income	New accounts opened just before applying
A clean payment record since the credit event	Open collections or judgments

Documents for a credit event

Discharge or dismissal papers, or the foreclosure or short-sale completion paperwork.
A short, honest letter of explanation covering what happened and what changed.
Evidence of re-established credit, such as on-time payments on new accounts.

Common mistakes

Paying off an old collection without asking how the program treats it, assuming one program’s timeline applies to all, and applying before the seasoning period has passed. Terms vary by program and borrower profile; we confirm the current guidelines when we review your scenario.

Reserves can offset a weaker score

Cash and liquid assets left after closing show a lender you can keep paying through a rough patch. If your score is modest, keeping reserves untouched and avoiding new debt before applying may help more than any other step.

Frequently asked questions

Should I wait before applying after a bankruptcy or foreclosure?

It depends on the date and your file. A short consultation can tell you whether you are eligible now or how much time remains, which is better than guessing.

Do medical collections count against me?

Treatment varies by program. Share what appears on your reports and your advisor can tell you whether it needs to be addressed.

Will a 640 score get the same terms as 720?

Not usually. The program’s matrix links score to the maximum combined LTV and to pricing, so a higher score often means more flexibility.