I know a guy who is a banker at Chase. He said they are looking for a minimum 720 credit score for new loans. That's probably the reason you were denied at Chase.
0 Debt and $100K in income and 690 credit score.........something is not right. Check your credit report to make sure that there are no other debts.
The risk is idiot that there is a chance your house could grab a $50,000 bid on ebay. Get back to me after the next crash above 1500 on S&P.
"There's still equity in the house" Still is the keyword there pal. Lots of folks also thought they had $50,000 amex credit lines until they got the letter saying their lines were being reduced. Lots of unfinished home improvement projects around. If your house is worth $1000, your neighbor A defaults, then neighbor B defaults bringing down the value or your home. Now whatever equity you thought you had has evaporated and now the bank is holding a note with a ltv ratio of > 90%. Where the house is located also matters more than ever now.
LOL, they haven't. Thus the 700 billion package. Where you been? These are new times friend, new times. Everyone forgot to to their what-if and now paying the piper. Now banks are calculating their what-ifs.