Our home is in my husband's name and in my name. I want to take out a personal loan or line of credit with our home as collateral. The home is worth about $90,000 and we owe $23,000, which will be paid off in 2013. The problem is, I want the loan in my name only. I am self-employed and not considered employed. Is it possible for me to get a loan or line of credit anywhere? I'm looking for about $50,000.
Your application to a bank for a loan will be evaluated on your ability to repay it and on your creditworthiness as an individual, if you apply on your own. Most banks will not consider the value of your equity in your home as a primary source of repayment. You'd need to have confirmed income sufficient to repay the loan.
The bank can require your husband to sign the mortgage or deed of trust with you to give the bank a lien on your home as collateral. If the bank decides that your income can't support the requested loan, it may require you to have a co-signer.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Your application to a bank for a loan will be evaluated on your ability to repay it and on your creditworthiness as an individual, if you apply on your own. Most banks will not consider the value of your equity in your home as a primary source of repayment. You'd need to have confirmed income sufficient to repay the loan.