bad credit

[sweet_caligirl]

What is the name of your state?ca Is it possible to get a home equity loan if your credit isn't great? Would they just put you at a higher interest rate? We have alot of equity in our home?

 

[amortgageman]

The type of loan you will be able to qualify for to obtain a second mortgage depends on several factors. Credit scores below 620 and delinquent credit will eliminate any possibility of a HELOC (Home Equity Line of Credit). A second mortgage can be obtained down to 580 credit score, and certain debts or other delinquencies may have to be paid off to obtain a "stand alone" second mortgage.

If your credit will not allow you to obtain a HELOC, then you should really evaluate the full picture concerning your first mortgage and the debts you are needing to consolidate and take this route.

I can help guide you to what types of solutions may be possible, but really need more details about: 1) Current mortgage payoff, a conservative estimated value of the home, current terms of your mortgage, how long have you had this mortgage, any prepayment peanalties??? 2) Credit? Any idea of your credit scores? What has made your credit "not great", any 30 day delinquincies? Bankruptcies? etc. 3) Job related, income related status, i.e. less than two years employment, self employed?

That should get a start on things.

Generic questions are hard to answer, I really need more details, unless the answer in the first paragraph fulfills what you are wanting to know.

 

[HomeGuru]

Good generic responses. Keep up the good work.

 

[rainmand]

Another possibility is a hard money loan. This type of loan is designed for folks with equity who can't get traditional home loans due to poor credit. The only qualification requirement is equity in your home. Credit is ignored. The Lender will usually loan up to a LTV of 75 at 16.99% for 8 years without a pre-payment penalty. This type of loan should be at the bottom of your list of loans to select from, but it is an option and deserves consideration. The reason the loan doesn't have a pre-payment penalty is because the loan is intended to be a short term solution only, maybe 24 months or so. During that 24 months, the homeowner should be working with their Mortgage Broker to improve their credit so they can be re-financed into a standard loan.

I'm not an advocate of hard money loans, but believe there's a place for everything and sometimes a hard money loan fits.

 

[sweet_caligirl]

I actually working with someone to get a home equity loan. And the interest rate she is offering is 4.88% and she said we are prequalified. She has already looked at our credit reports and knows how much we make. The problem right now is the house is not yet in my name. I am working on putting the property through probate to get it into my name. So we are waiting on that as far as the loan goes. I assumed the loan back in 2000 after my mother passed away. It's a fha loan. The mortgage payoff right now is about 80,000 and the house is worth about 270-280,000. And no there are no prepayment pentality's. What else do they take in acct before they make the final decision?