House paid for need equity loan with bad credit?
I currently own three properties in Illinois and one of them is paid in full. The house is worth $75,000. I ran into some problems a few months back and I got behind on a few bills. My credit score right now is horrible. I wanted to take out a loan against the home that is paid off but I am having a hard time finding someone who will lend me $20,000. I willing to use my house title as collateral. I don't want to have too many credit inquiries because that hurts your credit even more. Do anyone know of any banks or institutions that can help me. I am currently employed and i have rental income coming in. I fell behind, just having a hard time catching up.
- loanmasteroneLv 77 years agoBest Answer
Credit inquires made during a certain period of time would not count all that great against your credit report or credit score.
A difficulty you might be having is the amount of money you would like to borrower. In some instances some mortgage institutions would not lend that low amount in a mortgage refinance.
It might be that you might request an equity mortgage loan of approximately 50% of the value of the property,but never exceed the $20,000 you would actually need.
You indicated you fell behind in paying your debts, did this also include paying your monthly mortgage payment on the other 2 properties? If this is so you would be hard pressed to over come this negative credit for several months.
You might consider a hard money lender as a source of obtaining your mortgage loan. The interest rate would be in the neighborhood of 8%-12% depending on the requirements of your potential hard money lender.
You might google hard money mortgage lenders and make your decision as to which to use after several inquiries on your part to a few of the lenders you found on the internet.
Most legitimate lenders would not ask for up front fees, be weary of these lenders that do. You might consider using a different lender no matter the salesmanship of the mortgage loan officer.
I hope this has been of some benefit to you, good luck.
- Go with the flowLv 77 years ago
Any bank may be willing to finance a $75,000 home to give you only 20 grand.
Try a local credit union and make an appointment.
Remember you will have to pay closing costs, since there is no mortgage on the home.
An inquiry only affects your credit a couple of points.
Nothing compared to all those items in collections you might have.
Why not just SELL the darn thing?
- 7 years ago
You can't get a home loan with bad credit.
- Anonymous7 years ago
Yes, that is definitely a good way to go. I am a loan officer and we do this all the time.