Home Equity Loan Question?
Friday, 9. July 2010
OK heres the deal… I have bad credit however i have my own house all paid for, nothing owed. I need a new car since mine decided to freakin blow up! I tried with Bank of America to get a home equity line of ,000… which was the min, and they denied me because of my credit. I HAVE COLLATERIAL! Anyone know where else i should apply? or am I just basically screwed? You would thing that my house is all paid for that someone would give me a home equity loan…I am trying to avoid going to a car dealership to finance due to the interest rates…Thanks for all your help! any suggestions are also welcome
Jaclyn&Dave Says:
Look for a cheaper car for now, and then start saving to buy a car for cash.
Cars are cheaper on 100% down anyway.
If you are debt free, you should never need to get into a car payment again.
Buju Says:
Try to stay away from Home Equity Loans, (like Bobby Bushaw momma say. they are the devil).
Due to your credit you will have to pay interest anywhere you go unless you have cash to buy a car out right or put a good size downpayment.
If you need a guy you may have to bite the bullet and go to the dealership, get a very affordable payment and use it to build your credit back up.
mortgageboss Says:
That’s a tough situation. It used to be so easy to get a HELOC, I was even offered one in the drive thru at the Wells Fargo once.
Now days, banks are reserving HELOCs for those with impeccable credit and 20% or more equity in their homes as they determine the value.
Have you tried a local credit union or community bank? At least they would talk to you about your situation.
Bank of America and their subsidiary Countrywide, cut off thousands of HELOCs a year or so ago and left many people in a bind. I posted a warning on another site and I got so many hard luck stories of people who got their HELOCs cut off. To see, go to : http://activerain.com/blogs/mortgageboss?page=6
Anyway, I hope this helps
Ed Atun Says:
You are correct. The home equity loan is not against you and your credit. The bank is loaning against the equity in your home. Since you are borrowing so little, they should give you the loan.
You will have to contact 3 local mortgage "brokers". They know the names of people who will loan you money. With bank savings deposits paying less than 1%, someone will loan you $25,000 at 7%..