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Question DetailsAsked on 4/15/2013

where can i get a home equity loan with bad credit

i would like to get a home equity loan, my credit is @ 550. My home is fully paid for-no mortgage. what bank can i go that would lend me money

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Talk to your local credit counseling service, and if your state has one, the state housing finance agency - they will have the names of banks that deal in this situation.

Since your home is fully paid for, you are in a lot better position than trying to get a mortgage with bad credit, because with a home equity loan they are loaning you money backed by the value of the equity you already have in the home. Most banks, unless the house is in poor shape, would be happy to give you a line of credit up to about half the appraised value of the home, versus the 70-80% they might loan to someone with good credit.

Where it is going to hurt you is the interest rate - even though their loan is backed by the property equity, your bad credit is going to cause them to crank up the interest rate a few percent.

Of course, why you have a poor creddit rating matters too - if it is due to fraud or totally skipping out on debts rather than unemployment, health problems, etc, then that would make them shy away.

Answered 6 years ago by LCD




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