Get a Bad Credit Home Equity Line

Getting a bad credit home equity line is not easy. Do you worry about your credit rating affecting your chance of getting a home equity line when you refinance your home? It is possible, even with bad credit, to still refinance your current mortgage or to receive a home equity line of credit. There are many new programs out there that make it very easy to refinance your home. There are specialized lenders out there that will help make the loan perfect for you and your budget.

Many websites list lenders that are best for people with bad credit or "less than perfect credit". With a very trustworthy reputation, they offer very competitive interest rates and have over 200 various lenders to choose from. Most have been in business since 1996 and have excellent reputations.

Not only can you consolidate your bills, but also you can make improvements to your home when refinancing. Even if you do not have the best credit, some loan managers will offer up to 125% of the value of your home. There are many factors that are taken into consideration when refinancing. Some examples are your current mortgage terms, balance, interest rate, the length of time you plan on living in your home, and your debt to income ratio. Having existing equity in your home will often help in receiving a lower interest rate. Even if you do not have equity, you can still receive the loan, it just may be at a higher rate.

Bad Credit? Poor Credit? You Can Still Get A Home Equity Line Of Credit

With your home acting as your collateral, a home equity line of credit is a secured, revolving loan you can get. You are approved for a certain amount for the home equity line of credit. Your credit limit will be a factor in how much you can borrow at any given time. Most of the time this type of loan has a variable interest rate, there are a few lenders, however, that will offer a fixed rate. Because this is a revolving account, you can borrow that specific amount any time but only as long as the previous loan has been repaid. There may also be specific times that may be allowed to borrow on your line of credit.

Because your house is your collateral, it gives you the peace of mind knowing that a home equity line of credit is a possibility. You can use this money for whatever and whenever you might need it for. People use lines of credit for remodeling of their homes, saving college money for their children, having emergency cash, to pay some bills off, or even if the unexpected comes up.

For many years, lots of people have been either refinancing or achieving a home equity line of credit to help with financial needs. Like mentioned above, there are many lenders that specialize in programs made specifically for people with bad credit. They will work with you and help you get the best program and get rid of that bad debt forever.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk

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Houston FHA Mortgage Information - Questions and Answers

What is a Houston FHA loan?

This is a mortgage made by a private lender where the lender is insured against default by the Federal Housing Administration.

What is the limit for a FHA mortgage?

In Harris County the maximum loan amount for a single family home is $200,160 as on September 2006.

What are the income requirements?

You should earn enough so that the total mortgage payment is less than 30% of your total gross income. Total finance payments including the mortgage plus things like car payments, credit cards and other monthly obligations should be 41% or less.

What if I have had a bankruptcy or foreclosure?

A bankruptcy needs to be 2 years old and a foreclosure 3 or more years ago? Your most recent credit should be mostly good.

How much is required down?

FHA loans often require only 3% down and the money can come from a family member, or charitable organization as a gift. Most other types of loans don’t allow this.

Do I have to pay closing costs in addition to my down payment?

It is often possible to finance closing costs.

Are the rates good?

Yes, FHA loans have very competitive rates.

Can a FHA loan be used to refinance a home?

Yes, if you qualify.

Is a FHA loan always the best program?

No, At one time the FHA loan was one of the few ways to get a mortgage with a small down payment and a good rate. Now there are other loans that in some cases offer better terms. A good lender can give you options and help you select the program that is best for your needs.

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Texas residents can get more information at my Houston FHA mortgage site or call our office at 281-537-7800.

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