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Information and advice on home equity loan with poor credit - The Bills.com Blog
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Information and advice on home equity loan with poor credit
Tuesday, Jan 1, 2008
Question: Can you get a home equity loan/line of credit w/terrible credit? Due to medical, poor management over a period of time, our credit is in a state of stupor. We don't want purchases but we seriously want to straighten out all this mess and pay everyone we owe. Help with resolutions will be greatly appreciated.
Answer: Home equity loans allow homeowners to borrow money against the available equity in their homes. Those who want to borrow a relatively large amount of money or who don?t have good credit often find the home equity loan to be attractive. Home equity lines of credit (HELOCs) are credit lines given to homeowners based on the amount of equity in their home, and are a common type of loans used by borrowers to access their home equity. Unlike home equity loans, which provide a one-time lump sum loan secured against a home, HELOCs provide an open line of credit, with the credit limit determined by the amount of equity in the home, allowing homeowners to borrow what they need, when they need it.With a poor credit rating, you need to be especially careful of the terms you agree to with a line of credit.
Most lenders do not charge any closing fees, so you save on upfront costs of a second mortgage. You may possibly have early payment, minimum balance, or other fees. Before signing a contract, understand how fees will affect your credit plans.
Because you state that your credit is poor, the chances of you getting a loan will largely depend on the amount of available equity in your home and your level of income. Please bear in mind that you are signing up your home as collateral and if for any reason you are unable to repay the loan, you will be putting your home in jeopardy.
Once you have determined how much credit you need, you should contact various home equity lenders to discuss the loan terms they can offer
Because you state that your credit is poor, the chances of you getting a loan will largely depend on the amount of available equity in your home and your level of income. Please bear in mind that you are signing up your home as collateral and if for any reason you are unable to repay the loan, you will be putting your home in jeopardy.
Once you have determined how much credit you need, you should contact various home equity lenders to discuss the loan terms they can offer
you. It is important that you speak with at least three or four lenders so you can compare the interest rate and loan terms being offered by different lenders; this should give you a good idea of what interest rate you can expect to pay. I also encourage you to visit the Bills.com Home Equity Line Resources page at http://www.bills.com/home-equity-line/ where you will find a wealth of information and resources for consumers looking to obtain a home equity line.
Also, if you submit your contact information to the Bills.com Savings Center at https://www.bills.com/homeloan/mortgage_refinance/?loan_type=heloc we can have several pre-screened home equity lenders contact you to discuss the loan options available to you.
I hope the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, if you submit your contact information to the Bills.com Savings Center at https://www.bills.com/homeloan/mortgage_refinance/?loan_type=heloc we can have several pre-screened home equity lenders contact you to discuss the loan options available to you.
I hope the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Mitra on Sunday 18th May 2008 13:50
I had an excellent credit report last year. All my credit payments are current, but I have not made mortgage payments for the past three months due to the interest increased. I know that it has affected my credit rating. I am negotiating right now with my mortgage company. Do I have a chance for a debt consolidation or refinancing with you? Is the home equity the main requirement for refinancing in your program? I bought a brand new hours in 2006 for $320,000, but the price of houses have decreased in CA. Your response to my questions will be greatly appreciated.
2. Posted by Bill on Monday 19th May 2008 08:36
Bills.com helps customers find the best loan they are looking for by matching them to qualified lenders. Bills.com by itself is not company that lends money directly. There are several factors that determine your eligibility for a refinance including, Loan to Value (LTV) ratio, your income, your debt to income (DTI) ratio and your credit. The fact that you have missed more than 2 payments is not a good thing, although I cannot say for sure that it will rule out your chances of getting another refinance offer. You will know only after you apply. You can apply at: https://www.bills.com/homeloan/refinance_save/?rbc=blogcomment. Best of luck!