Line Of Credit Loan Against Equity

We are planning on selling and moving out of state in 6 months. The money would be used to get caught up on some bills and also do some home improvemnts before we put the home for sale. Would this be a good ideal? P.S My credit sucks.

It all depends how much equity you currently have in your home. For example: if you currently owe $150,000 on your home & your planning to take out $50,000 & the value of your home is $275,000 then it's okay. But if you owe $150,000 & & you take out $50,000 & your home is worth $210,000 then i wouldn't suggest you do it. This market is very slow right now & a lot of buyers are not offering a full price on a home so if you pull all of the equity out you might have a problem when you're trying to sell it.

Regarding your credit you generally need atleast a 640 score to get a heloc (home equity line of credit) on your home & also it depends on your ltv (loan to value). I suggest you talk to both a Realtor (to have an idea what your home is selling for & the value) & talk to a Mortgage Broker before you make your decision. You don't want to do something that you'll regret & that will jeopardize you selling your home in the future.

Good Luck!

2007-07-08 05:22:01 by trsupermom1

While the credit crunch has made borrowing for... or against... your home more difficult, home equity loans and lines of credit remain popular for ...

We have two homes. We are selling one of them. We are thinking of taking out a HELOC (Home Equity Line of Credit) Loan (against the home we are NOT selling) to use as a down payment on a "3rd House." I'm just curious ... does the Seller (of the 3rd House) care that your down payment is in the form of a LOAN? Or, as long as you're qualified (in the eyes of the bank) it doesn't really matter to them? Thanks for your thoughts!

None of his business. The lender would be interested because a heloc or heloan will increase your debt-to-income ratio. As long as that's still acceptable, no one cares. This is a very common way to get a down payment. A pre-approval will eliminate all doubt.

2008-02-19 13:03:06 by tnb1984

Most people who own a house &, have equity in their house, can get a bank loan (home equity loan, line of credit, etc.) by using their combination of house & land as collateral.

My situation is that I own an island in the Chesapeake Bay, & it is just land, but no house. I would like to get a home equity loan for let's say $100,000... but, I can't do that because a home equity loan requires you to have a "home" (house).

So, my question is... "How do I get a loan against my property". The island may be worth a million dollars, or more, but if the banks and lending institutions have their way, I can't borrow even a single penny against it.

Short of building a house on the island, how can I find a way to borrow against it?

Really?! I know lots of people who own only land and use it for collateral against a loan all the time. Any bank should be able to accommodate you, I'm sure. Banks LOVE to loan money ... that's their bread and butter!

2006-11-21 22:21:52 by should i

I applied for a home equity loan and was flat out denied. I looked up my credit rating on the internet and I am right between 710 and 720. I get credit card offers a lot and I have no debt other than my car payment. I own my own home. It has no loans against it. It was given to me by my dad about 10 years ago. What is the problem with a home equity line of credit for me?
I have a checking account with this bank x 10 years. I keep most of my savings in a credit union account.
My brother is heavily invested in real estate. He has owned several houses at a time and makes a living off of them. This bank would not loan him money for another piece of property because he "did not have employment"
I make about $55-60,000. a year. I am a nurse. Single parent of 2 grown kids.
Taxes are about 1500.00 yearly.

You need to check with your bank. Dicrimation in any form is illegal in the banking industry.

2006-07-14 18:37:50 by happydawg

I was told by my real estate agent that if I did a short sale or foreclosure on my home in Arizona, that both the first mortgage and Home Equity Line of Credit (taken out 9 months after home purchase) would both be relinquished in a short sale or foreclosure. Because the house had dropped significantly in value and half the lots were vacant from owners doing the same thing, I decided to proceed with the short sale. It wasn't approved and went into foreclosure. Now the bank is pursuing judgment against me to garnish my wages. Unfortunately, I can't afford to retain an attorney. Is this a case I can win, even if I represent myself in a civil suit against this realtor? I also have email documentation asking him specifically how both loans would be treated. He responded with "Don't worry, I have it!" I also have a witness to him telling me this verbally. According to the anti-deficiency laws, the second loan is not forgiven because it's Non-Purchase Money, is this correct? Also, I'm wondering if I have a strong enough case to pursue this in civil court, representing myself.

The Arizona laws make a distinction between purchase-money loans and all others. The bank can go after you for the deficiency on the other loans.

Many AZ attorneys believe that the intention of the legislature was to protect a homeowner on his personal residence. That no court will uphold a deficiency on your personal residence. We don't yet know if this will be true or not.

So far, the banks have not been willing to pursue judgements because the borrowers (you) don't have any money. It is just a waste of time.

You have a case against the realty agent but not for all of your damages. You were responsible to protect yourself. The agent was responsible to get the house sold. You might win a small judgement.

2009-11-16 10:54:35 by Ryan