How to Get a Bad Credit Home Equity Loan

Home equity loans are second mortgages that allow homeowners to borrow money from their equity. Borrowers can use the money to consolidate debts, make home improvements, etc. Many people are attracted to home equity loans because the loan requirements are minimum. In fact, it's very possible to acquire a home equity loan with bad credit.

Difficulty: Moderately Easy

Instructions

1. Know your options. There are different types of bad credit home equity loans. You can apply for a home equity loan and receive a lump sum of cash, or you can obtain a revolving line of credit with a ten-year draw period. Additionally, bad credit home equity loans feature fixed and adjustable rates.

2. Consider different sources. Most borrowers apply for a bad credit home equity loans with a mortgage lender. However, other financial institutions such as banks and credit unions offer second mortgages. And in some instances, they offer lower rates than mortgage lenders

3. Contact your present mortgage lender. If you have a good payment history with your mortgage lender, they may offer you a low-rate home equity loan. Request a no-obligation quote.

4. Shop around. The goal is to obtain the best rate on your bad credit home equity loan. To do so, you need to make rate comparisons. Once you have your present lender's quote in-hand, request quotes from two or three additional lenders. To speed the process, contact a mortgage broker.

[tjzerrer]

on 7/9/2009 Thanks for the information. I see there is so much to this loan stuff that one should read the fine print before signing for the loan.