Bad Credit Home Equity Line Of Credit

I don't need the credit line really just want to know if keeping it open is bad or good for my credit.

It could be either, but probably good depending on the length of your credit history. If it's an old account that helps your credit. Also your ratio of credit balances to credit limits will increase if you close it, which could increase your score.

2007-08-30 11:43:54 by lehigh_1999

www.debtshepherd.com A recent magazine ad offered a home equity line of credit (HELOC) for financing a college education. Why is this a bad idea ...

I'm in the process of buying a forclosure for aprox 1/3 of the tax value.
It is a cash only deal, the bank will not accecpt an offer based on a loan. The bad part is it will take almost all my money to buy it. And I have to build a garage for my work.
I want to take a loan out on the house, but I'm scared I won't be able to.
The house is a two story home built in 88, the tax value is $117000
I need to borrow $30,000 to build my garage. I need to keep the payments low, so I want a 15 yr loan.
I'm not married yet, but could be if it will help the loan.
My credit is bad , my future wife has poor to fair credit.
I have put in for a loan for me and for me and my future wife as unmarried, on lending tree. With no luck at all! Does this mean we will not be able to get a loan?
It seems to me that any bank would love this offer, $30,000 on a home with $117k.
What would be the best way for me to get a loan, I have to get a loan or I can not buy the house. I have to have a large garage or I don't make any money. Thanks
Ok my bad , I thought they would rather go off tax value since it is the lowest. I had it app last week for $134,000

You would need to contact a mortgage broker/banker that do hard money loans.

These hard money loans will allow you to borrow up to 50%-60% of the After Value Repairs ARV) of the property. So based on the appraised value you have you would be eligible for approximately $67,000.

If you only need $30,000 then you are within the limits of what you can borrower.

These type lenders will give you a loan amortized for 30 years but the loan would be due in 5 years, some will make the loan due in 10 years, but this is rare. Your monthly payments would be as if you had a 30 year mortgage loan.

Now by the name of the lender you should know that you are not gonna get the very best rates in the world, but you would accomplish what you want to do and that is build your garage and make other repairs that you think are needed.

These lenders look more at the project (Property) as oppose to the borrower and his credit scores and other things that a conventional lender would look at to include most government underwritten mortgages

In most instances your interest rate on loans are tax deductible on your federal income tax.

For tax and legal matters you should always consult your tax consultant and attorney.

After the five years and your monthly mortgage payments made on time you would be able to refinance your home at the appraised value at that time and you would have your garage built and other repairs done if necessary.

I hope this has been of some use to you, good luck.

"FIGHT ON"

2009-06-02 23:04:08 by mr Smith

my credit score is very low but i own a $75,000 house with no mortgage. i am looking for some kind of loan so i can do major repairs on my house but i keep getting turned down due to my credit. i have been at my job for almost ten years and make around $300.00 a week.

Wow, with a house that is cash you really should not have that much trouble. Amazing how banks are changing so rapidly.

Keep trying, but maybe ask banks for a 5 year mortgage for the amount you need. They don't advertise this, but banks DO offer short term mortgages, with fixed rates no games.

If you have time go to annualcreditreport.com
and fix anything that is incorrect or outdated if you haven't already done so. Things become outdated after 7 to 8 years.
Also get one credit card, and pay it in full each and ever month for top notch credit. Carrying a balance reduces credit.

Keep trying, there is no reason you should be getting turned down if your house has no mortgage. If you are asking for 20% value they should be throwing it at you.
Try a credit union.
/

2008-11-13 16:45:40 by jmpoct03

my credit is bad and a loan would really help. i would like to pay off somethings and consolidate the rest, what can i do? Why can't the equity in my home speak for itself, i've never refinanced?

A couple of years ago, the equity in your home would've been good enough, but not today. Since no investors want to go near real estate these days, and with homes falling in value daily, the "equity" in a home is relatively unknown. There are millions of people bailing on their mortgages and the lenders are stuck with the houses. They don't want to own houses.
I sold my house last fall. I had it on the market for about 7 months. I was still able to afford it, but I was sick of feeling "house poor" as I wasn't really able to save money, and wasn't able to put enough money aside for future repairs (which is essential if you own a home because things will always go wrong). Selling it was the best thing I've ever done. I'm renting a house of similar size in a nice neighborhood, and it's costing me $1000 less each month than the house I owned! And I bought my house before the bubble.
Today, frankly, your options are limited. An equity loan might be a good deal if you can get it and the interest rate is less than you're already paying. However, if you're already in debt, I can't imagine that an equity loan would help your situation. Worse, if you're not able to pay that loan, you can lose the house, and since you bought it in 1998, you should have a lot of equity in it. Have you considered selling it? I know that the market is not great, but in my area, I've noticed houses selling in about a month. And not owning a house has been a tremendous relief for me. If the roof leaks, I don't have to worry about paying for it! Also, it's better to be in control than have the bank in control. Home ownership is WAY overrated. The mortgage interest these days alone is more than rent, and then there's insurance and taxes on top of that. It's a really bad deal.

2008-09-16 11:07:36 by inabind

household income is around 130k. we have a mortgage loan of 280,000. our HELOC interest rates is the PRIME RATE plus 3/8ths.
we got this home equity line of credit with Countrywide Financial. Our mortgage is with JP Morgan Chase. I'm wondering if I could have done better on the HELOC by going straight to JP Morgan Chase for the HELOC and possibly might have avoided the $500 closing fee? Is this a bad deal I have with Countrywide? Do others know if Countrywide is competitive. I should have compared more before I got the loan. Does Countrywide loan to risky customers and therefore expect a higher interest rate from all its customers?

you definitely should have done research before going into any loan with any bank. Most banks are prime- 0.50% and you probably should have looked around for one that didn't charge closing fees.....the good news is, do your research now, wait a few months and pay off this one with a more competitive offer.

2006-11-02 10:04:58 by Mark