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.

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    How much dividends ($1,000/year, or $40,000/year)?
    – RonJohn
    Commented Feb 18, 2018 at 0:32
  • Assume dividends are around usd35k a year. However, they may fluctuate quite a bit.
    – curious
    Commented Feb 18, 2018 at 1:11
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    Per my answer, a paid home with no first mortgage is a candidate for a HELOC. Assets justifying a $100K/yr withdrawal make it a no-brainer for a bank. $35K may cut it too close and require a longer application process. Not a slam dunk, but worth asking. Whenever people speak in absolutes, ignore them. "basically impossible" is nonsense. Commented Feb 18, 2018 at 17:39

1 Answer 1


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.

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