You spent years paying off your home mortgage, and now you want to use some of that equity for home improvements, to buy a vacation property, or pay off taxes. But, you have less than perfect credit or a previous foreclosure or bankruptcy on your credit report. The conventional banks turn you down — what can you do?
If you’re struggling financially, you may feel as though you are out of options. However, all hope is not lost. Your home has significant equity that can provide you with the help you are looking for. Learn how to use your home equity the smart way by reading on.
If you have owned your home in Florida for some time, you have accumulated equity as you paid off your mortgage. You would expect that this equity would be available to you at any time, but that’s not necessarily the case. If you have had any credit issues or other financial problems, you may not be able to get an equity loan from your lender or other conventional sources. Banks and conventional lenders are very conservative when lending to people with any sort of financial difficulties.
You are equity rich and credit poor. This is a situation many florida homeowners find themselves in when they go to apply for a bank loan. They have scores in the 500s, charge-offs, or judgments that need to be cleared up. However, the bank turns them down. Many times the homeowners own a Florida owner-occupied or non-owner occupied property worth $200,000, $300,000, and up to $1,000,000 that is paid off free and clear. The bank however only uses credit, and credit scores and debt-to-income ratios. Sadly many of these good borrowers will be turned down.
Private equity funds may sound intimidating, but these funds are actually rather simple. Private equity funds are established as a limited partnership by a private equity firm. The firm reaches out to larger investors as a way to seek investments in the funds. Once these investors make investments, the limited partners’ capital is locked away for a certain amount of time before the funds are liquidated and the principle is returned to its shareholders.
*We do not issue approvals. We are a marketing and lead portal. You will be contacted directly by our private investors. They will call you directly to determine the value and equity in your home and to help you throughout the approval process. Each inquiry is on a case by case basis. Thank you.
