Is it true you can get a home equity loan after 30 days?

Question

How long do you have to live in a home that appraised higher than what you paid to get a home equity loan?

Our credit is now damaged, is it still possible?

Answer 1

You don't have to wait, but if it's less than 12 months, the lender is going to use the purchase price and not the appraised value. If you put money down for your purchase, you can take out a HELOC up to 100%. The rate will be higher, but you can pay it off with your HELOC in 12 months that's based off appraised value. Just make sure you ask what the termination fee and/or prepay penalty is.
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Answer 2

I can't speak for all jurisdictions, but in Canada one can get a home equity line of credit or home equity loan immediately if you have equity in a home. The conditions may vary, but in general you can get a loan up to 3/4 of the assessed value of the home minus any mortgage amount. The big advantage of an equity line of credut is the interest rate is generally close to prime and you can pay any money borrowed against it back whenever you like (unlike a mortgage where there are strict prepayment limits. You do have to pay at least the interest owed on the amount owed each month.

Depending on your circumstances this may not be helpful to you, but check with your bank (if you have a mortgage it is probably best to check with the institution holding it), you may be surprised what is available.

Answer 3

Bad Credit Rating in Home Equity Loans

Home equity loans is one of the quickest, fastest and easiest way in obtaining cash for debt payments, home improvements, education, emergencies and medical expenses. However, you might think that your loan will not get approved because of your bad credit rating in home equity loans. Think again.

Even if you have a bad credit rating in home equity loans you can still refinance your home mortgage loan. You can still get a home equity loan even if you have a bad credit rating in home equity loans. There are some lenders that offer loans to those who have bad credit ratings in home equity loans. Although, the interest rates and loan terms for those who have bad credit rating in home equity loans are less flexible than those who have good ratings. And finding an institution with low interest rates, good terms and no extra fees or charges that caters those who have bad credit rating in home equity loans is very difficult.

Most lenders that provide home equity loans to those who have bad credit ratings are likely to charge additional fees or offer higher down payment. On the other hand, some of these lenders have fixed interest and variable interest rates and some lenders features maximum repayment for borrowers, which usually is thirty years.

Some lenders tend to depend on the reports made by credit rating agencies. These agencies are the TransUnion, Equifax and Experian (collectively known as FICO, an acronym for Fair Isaac Corporation). These agencies evaluate the individual’s credit ratings by considering some factors. These factors include the past payment history, latest credit applications and remaining debts. The credit ratings range from 300 to 900. If an individual has a credit rating of below six hundred, it means that that individual belongs to the bad risk bracket. However, the rating of a certain individual may differ depending on the FICO agency. Some lenders offers home equity loans to individual who are in the middle of the score range.

Many individuals who have bad credit ratings tend to pay higher interest rates on a home equity loan, and these rates can accumulate up to thousands of dollars over the course of the home equity loan. Although, the credit rating can improve after a few years and the individual will be able expected to refinance the home equity loan and will get a better loan terms and deals with lower interest rates. This will depend on the individual’s current interest rates and whether or not the individual will get a fixed rate or variable rate in home equity loan.

It is important to always make sure that you review the home equity loan contract carefully before signing and do not hesitate to ask questions if there are some things that you don’t understand regarding the contract.

Answer 4

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Answer 5

Ask your loan officer you just used. There may be a prepayment penalty to refinance..