Suppose a jobless person has a fully paid property. He wants to take out a home equity loan. Will the bank reject his loan application due to his lack of salary income as a jobless person? This person has other sources of income such as stock dividends. Will the bank ignore stock dividends as a source of income because it is less stable compared to a salary?
Assume the person has a clean credit track record.
As Ron’s comment implies, it’s a matter of the numbers. My HELOC recently reached the end of its draw period, and I preferred to keep it active. I opened the conversation with the bank by saying I was retired and no income other than retirement accounts. I put together those documents (I mean copies documenting 401(k) and IRA balances. They did not ask for tax returns.), and 2 weeks later had a fresh HELOC.
It might not be so smooth if there aren’t enough assets or other debt.
