Get a Home Equity Loan With Bad Credit!
Tampa Home Equity Bad Credit Refinance | Hudson Debt Consolidation
Using your home’s equity can be a great advantage when you need money. You have paid for your home, and now you want to access some of that accumulated value. However, you may have poor credit and wonder if you can get a home equity loan. Let’s take a look.
Because you have equity, you may actually be in better shape than you thought. If you have a regular income, you should be able to access some of your equity more easily than trying to obtain a new loan. There are two types of equity loans; a home equity loan, and a home equity line of credit.
- Home equity loans are precisely that; you borrow a chunk of money you need and start paying on the principal and interest according to the terms of the loan.
- Home equity lines of credit are used when you may not have an immediate need for the cash, but want to be endorsed to borrow it in the future. The Investor validates you for a specific amount limit for borrowing, the “line of credit”, and you can borrow what you need. In some cases, you only pay interest on the amount you borrow for a specific time called the “draw period”. After that, you must repay the loan per the agreed terms.
So what should you do if you want to qualify for a home equity line of credit?
- Know your credit report front and backwards. You can obtain an annual report from the three credit reporting agencies annually for free, you don’t need to pay for them. If you want your credit number, you may have to pay a fee for that. What you are looking for is incorrect previous loan information, incorrect payment histories on any loans, and so forth. Follow the credit agency procedures to file corrections as needed using historical payment information you have. Fix up your credit report before you continue.
- Look around at different Investors and understand what the current loan climate looks like. Many customers go to the bank they regularly do business with, but that might not give you the best deal.
- Perhaps most important, determine how much money you really need. It may be tempting to get financial privileges for a larger loan, but you are assuming a debt secured by your home. It may not be prudent to borrow against your home for finances you don’t really need at present, so get the money you need then pay it off on time. This will help your credit rating, and you can always borrow more later if needed.
AHL Hard Money Loans can help you obtain the equity accumulated in your home. Our Hard Money Investors are ready and waiting, so contact us today for information on a home equity loan.