Bad Credit Equity Loans
For those having problems with bad credit, there are alternatives in making use of the equity in your residential or commercial property and accessing the funds you require through bad credit equity loans using Arizona, Texas, Florida and California hard money lenders.
The Benefits of Hard Money and Private Money Lenders
Private home equity lenders and hard money equity lenders usually can offer and approve home equity loans for bad credit. The lender will request a Letter of Explanation to describe why your credit is low, what caused this to happen and why your in a better position now. Typically, as long as the subject real estate is in a good location, condition and loan to value is less than 60 – 65 percent of the house worth the private money lender will approve the application. Instead of being kept back by bad credit or other credit concerns, you can proceed without the guideline requirements of the more traditional kinds of loans.
These bad credit home equity loans can also allow you to borrower against the property in a 1st, 2nd or 3rd lien position so that you do not have to sacrifice your current low interest rate 1st mortgage. Liens positions are state specific and some state only allow for a first mortgage, while other states (such as hard money lenders in California and Arizona hard money lenders) allow for second and third lien positions.
What can I use a Bad Credit Home Equity Loan for?
An added plus of Bad Credit Home Equity loans is the capability to state your earnings. There is typically no verification of income or assets that you state on your application. This significantly decreases the amount of paperwork needed during the loan process and enables you to have access to the funds you require more quickly.
When using hard money equity loans, you can not only help your personal financial circumstance, you can even utilize the cash out refinance program to begin the business you dreamed about, inject capital into a current business or buy an investment property for positive cash flow.
Moving Forward with a Bad Credit Home Equity Loan
Typically only current mortgage statements, homeowners insurance declaration pages and photo ID’s are all that’s required to begin the process for new bad credit mortgage loans. On the back end, the hard money loan officer will order an appraisal or BPO and new title report. An appraisal is ordered to validate the home’s worth and the preliminary title report is to make sure no other liens exist which may hinder the procedure. If new liens appears on title, we might be able to pay them off thru the new bad credit home equity loan on a case-by-case basis.
Give us a call at 1-800-315-0043 or click the Apply Now button at the top of this page so that we can suggest the very best choice for your personal financial circumstance. If a Bad Credit Home Equity Loan is something that would work for you, please Contact Us so that we can establish a strategy to get you back on track.
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