Is it possible to get a equity loan with bad credit? I have a home valued at $236,000 and a mortgage of $155,000.
The general answer is, maybe you could. It may not be at your lender of first choice and it may not be as low an interest rate as you would hope for. It depends on what your credit report looks like and your other qualifications. Remember, your home would secure the loan, but that doesn't mean the second lender wants to repossess it, pay off the first lien and then sell the property to reduce their loss.
You have equity in your home and different lenders have different approval polices as well as different maximum loan ratios. If a lender would loan 100% of your value you would have $81,000 in equity. If they reduced that because of your qualifications or any housing slump in your area to 80%, you would have $33,800 available.
All home borrowers should be cautious of lenders ready to charge a lot in fees. These lenders are often categorized as "predatory lenders" and many make money by making the loan and charging fees, and then doing it all again in a few months. Some charge excessive fees compared to the market place and eventually foreclose because the owner simply can't keep up. Banks are generally not in this category of lenders. Take your loan request to several lenders and compare the fees they charge, even if you don't think you'll qualify for the loan with them. WHat you are interested in here is the fee schedules and they'll generally tell you this even without you submitting an application. This allows you to see if a lender who does approve you is charging two or three times what other lenders would. That is why you should start with your bank. Ask if they make equity loans and what you may qualify for under their policy. They may be able to assist your need is some other way if a home equity loan isn't right for you and rebuilding your credit is in order.
Do what you can to clear up the negative credit and try to reestablish yourself. Rebuilding your credit can take a long time, but there is no better time to start.
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The general answer is, maybe you could. It may not be at your lender of first choice and it may not be as low an interest rate as you would hope for. It depends on what your 