I have less than 15% equity in my home and need to consolidate some bills. My FICO is right at 530 and I have one late mortgage payment about 3 months ago. The amount I need is about 10% equity in my home, but can't find a lender willing to let me have the money with such a low score. At this point in time, the interest rate is not as important as getting some things paid before they begin to affect my credit even more. Anyone know of any companies out there that will go with a 100% equity loan with my bad credit score?
2006-07-06 19:01:04 · 4 answers · asked by Kennyb 1 in Business & Finance ➔ Credit
There are some subprime lenders that will go up to 125% of the value of your home. I am not 100% sure your 530 will let you do it though. Try a lender that uses Delta funding they do some funky stuff. If yo uare married try to do a stated on your wifes credit and they will leave you off.
2006-07-07 08:53:09 · answer #1 · answered by unclejesse1 3 · 1⤊ 0⤋
I have been a mortgage broker since 1997. What you want is not possible, nor available. Your Fair Isaac Credit is too low to access a 100% LTV mortgage to consolidate debts...especially with a recent mortgage late. Your only realistic options are a private hard money loan from someone who knows you, or a loan through a credit union. Neither seem especially likely...Best bet is to suck it up and contact the creditors to try to negotiate with them directly. Your score is already so low, it will not make any difference. If you refinanced right now (if you even could!) your rate on the mortgage would only go up - putting you in a worse position than before. Pay your Mortgage first of all... then your other debts in priority of highest interest rate/ highest balance. Hold on to your home - other things can be replaced, credit can be rebuilt over time - but keeping your home out of foreclosure is key to all of that!
2006-07-06 19:16:44 · answer #2 · answered by Andrew L 1 · 0⤊ 0⤋
I agree with the previous poster about having an appraisal done if it has been awhile.
I seriously doubt you will find a lender to fund a 100% loan. But, if all that you need is 10% of the equity in your home, why not try Citifinancial for a second mortgage.
They generally do work with people that have low credit scores, but their interest is very high.
2006-07-06 20:07:27 · answer #3 · answered by echo 7 · 0⤊ 0⤋
You need to find a sub-prime broker to re-fi the whole thing... that's ur only option.... but if u only have 15k... it will eat most of that in fees. Most lenders will only do stand alone seconds with a FICO of 620 or higher. And even if you went to a hard money lender... they "usually only work with 70% ltv's or lower... and their interest rates would probably be higher than those of you credit cards. When is that last time you had your property appraised? if it has been more than 6 months.. you may have more equity than you know about... but go with a broker.... they have more flexibility than us bankers.
2006-07-06 19:18:48 · answer #4 · answered by Brooklyn 3 · 0⤊ 0⤋