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A_Guide_To_Bad_Credit_Home_Equity_Loans

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					Title:
A Guide To Bad Credit Home Equity Loans


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283


Summary:
You can obtain a home equity loan even if you have faced bankruptcy or have a bad credit rating. There are
institutions that cater to this segment, however, interest rates and terms are likely to be stiffer. Additional
fees also could be charged. The lender may offer high down payment and lower interest burden or vice
versa. Loans with both fixed interest and variable interest are available. The maximum repayment time may
be up to thirty years.



Keywords:
home equity loans, bad credit home equity loans, fixed rate home equity loans, home equity loan calculators



Article Body:
You can obtain a home equity loan even if you have faced bankruptcy or have a bad credit rating. There are
institutions that cater to this segment, however, interest rates and terms are likely to be stiffer. Additional
fees also could be charged. The lender may offer high down payment and lower interest burden or vice
versa. Loans with both fixed interest and variable interest are available. The maximum repayment time may
be up to thirty years.


Usually lenders depend on reports by credit rating agencies like TransUnion, Equifax, and Experian,
together known as FICO, to evaluate an individual's credit rating on a scale of 300 to 900. The factors
considered by these agencies include, past payment history, recent credit applications, and outstanding debt.
A score below 600 indicates that you are in the bad risk group. It is possible that the rating of the same
person given by each FICO agency differ. Some lenders score in the middle range.


There are ways and means of improving the FICO rating. Certain banks also offer credit counseling.
Agencies approved by the U.S. Department of Housing &Urban Development (HUD) too give free
counseling, including review of your financial situation. Some lenders may not even bother with FICO
ratings. In such cases the maximum loan would be only 70 percent of the net value. They may insist on the
borrower paying off some of the outstanding debt with the money loaned.


Do some research and see what different lenders have to offer. Don't blindly believe everything that is said.
Study them, ask questions; there is no need to feel timid about your present financial situation. And be
careful. There would be people waiting to exploit your seemingly desperate situation.
Credit Dispute Letter

				
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posted:1/7/2012
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