How does home equity loan qualification works if you have bad credit? ?
Thursday, 12. August 2010
My credit isn’t perfect and I want to get a home equity loan. What are the qualifications? What lenders look at if you have bad credit? How can i increase the chances of getting one, without waiting for credit to go up?
Would appreciate if you can answers even one question. I am desparate for good information. Thanks!
Steve D Says:
Get in touch with a mortgage broker and explain your situation. He/she may know some lenders who will give out equity loans to people with less than perfect credit. Be prepared to pay above market interest rates however. As always, your house will have to appraise for more than you owe on the first mortgage and depending on the credit markets at the time, you may not be able to go up to 100% of appraisal.
Real Estate Guy Says:
It’s the same as when you got the mortgage.
Also they will look at your equity. If you have a lot of equity and only want to take a little, it may be a little easier.
Judy Says:
It doesn’t work. You say you have bad credit, then you say it isn’t perfect, then say again it’s bad. Which is it? Hardly anyone’s is perfect – but if it’s bad, you need to improve your credit rating if you want to get a HELOC