If you own a house completely and have bad credit can you get a loan?
I own a house and have no mortgage. I want to take a loan out to do some repairs on home. House is worth about 30,000 I would like to take out a loan for 30% of house value about 8000-12000
I want to know if the bank will approve me for a loan even though I have very bad credit. I can not file bankruptcy or pay off my credit any time soon. What are my chances of getting loan? Do I have any alternative options? Also my monthly income is less then 1000 a month.
- Go with the flowLv 79 years agoFavorite Answer
To take money out of a paid off home, you cannot take out a HELOC.
You will have to completely re-fi the home.
Closing costs alone can be up to 6% of the amount borrowed.
Also, banks do not make home loans (mortgages) on values less than 40,000 or 50,000.
You'll have to see if you qualify for a personal loan for the $9,000.
Which may be unlikely if your income cannot support the payments and your credit is not great.
Have you considered selling the home and moving into a cheap apartment?
The reverse mortgage idea is also a waste of time.
No company will consider a 30K home, plus, you have to be 62 and older.
Plus, reverse mortgages are a horrendous idea.
You are always better financially selling the home, and moving somewhere cheaper and paying rent..
- MiltonLv 79 years ago
The answer is yes. A secured loan against the house is a possibility. Here is the catch. If you have bad credit, it means you don't pay back what you owe. Do this when the house is the collateral for the loan and they will take your house and sell it quicker than you can say Howdy Doody!
- smahadevan39Lv 79 years ago
Poor credit rating and low in income to meet the repayment, if loan is considered. Difficult to get loan.
- 9 years ago
im in the same situation as you but don't have bad credit, i just don't have proff of income income because ive been in construction for over 7 years and haven't file taxes. but the reason i left you a reply is to let you know don't give up keep looking, no mater what these people say.
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- city-girlLv 69 years ago
Yes, this is possible, but very risky. If you default even by one day, you will lose your house.
A reverse mortgage might be better for you, speak with a banking specialist.
- wizjpLv 79 years ago
Never happen. No credit and poverty level income.
- MabeLv 79 years ago
they might at a higher interest rate, if you have worked somewhere longer than 6 mos..a bank would be the first place to check.
- Anonymous9 years ago
To answer your question i would say just concern some one who can guaranty you loan for your specific property need.