|
 |
Home >> Manage Your Money >> Personal Finance
Why can't I get a loan on my equity?
I own my home, it is worth 194,000, and is paid for in full. I owe $40,000, and nobody will give me a loan to pay off my debts because my credit is bad, why?
|
Untitled
|
 Residential mortgage lenders look at the likelihood of repayment from income or other sources, not from sale of the real estate. Your poor credit rating is one indicator of the likelihood of repayment, and it is one that most lenders won't ignore, particularly after the financial bloodbath that real estate lenders have taken for past practices that ignored sound lending principles.
Although there may be a lender that will lend on the equity in your home in spite of your poor credit rating, you can expect that the interest rate will be high and the terms will be onerous. You may want to consider discussing your situation with a nearby non-profit credit counseling service, where you can get help with techniques for getting your credit standing back on the right track.
Published on BankingQuestions.com 6/18/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
