Get a Home Equity Loan with Poor Credit

Is it possible to get a home equity loan with poor credit? Before we explore this matter further, it's good to note that poor credit is a significant hindrance to getting a home equity loan.

But, it is possible to get a home equity loan despite the many challenges one may encounter as a result of poor credit.

In this piece, we consider the various ways in which an individual can acquire a home equity loan with poor credit.

Simple Ways to Get a Home Equity Loan with Poor Credit

  1. Calculate your debt to income ratio. With a score of 40 or less will put you in a better position of acquiring a home equity loan.
  2. Take time to learn how to calculate and know your home's current market value against what you owe. By using a home estimate calculator, you will be able to understand the present value of your home.
  3. Find out what your credit score is. Lenders are more likely to grant your loan request if your credit score is at 620 and above.Also, remember that your credit score is the determinant of the interest rate you are going to pay on loan.
  1. If the above three ways don't help, why not consider cash-out refinance.
  2. If all the methods above fail to work, you can look for a lender who will agree to a shared appreciation agreement so you can be able to acquire the home equity loan.

Final Thoughts on How to Get a Home Equity Loan with Poor Credit

Always remember that with the bad credit score, you are at a disadvantage. Why/ you get to pay a higher interest rate on your loan, not all lenders will be willing to grant you a credit, and the process of acquiring one is tedious.

However, all hope is not lost. With the above hacks, you will be able to get a home equity loan at competitive rates.

Offers 2 programs to help homeowners

The Sell and Stay program you can leverage the value of your home while staying put in the home you love! EasyKnock will buy your home, give you cash for some of your equity and rent the home back to you. 

With their MoveAbility program you access your home's value before it hits the market. That way you'll have money and time to find your perfect next home or adventure.

Point is your home equity partner

Get up to $300k with no monthly payments, ever. Point is the first home finance product aligned with homeowners.
We do well when you do well.

Point will  pay you today for a share of your home’s future appreciation. There are no monthly payments; there is no interest rate; you can buy Point out or sell the home at any time; they can lose money if the home depreciates. They do well when you do well. Now, that’s quite revolutionary.