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Alternative to home equity loan for bad credit in Aurora, IL

In theory, having equity in your house should be like having money in the bank. After all, it’s over and above what you owe the lender. If you want to tap into it, you should be able to do that. Right? Unfortunately it doesn’t work that way.

 

You might be able to borrow against the equity with a home equity loan, but only if you can prove to a lender you’ll pay all the money back on time – with interest. The lender will also expect you to pay hefty upfront fees and closing costs for the privilege of borrowing the money.

 

Home equity loan for bad credit in Aurora, IL

 

A home equity loan is a second mortgage. Just like your first mortgage, you make payments every month for up to 30 years. You pay interest at a higher rate than your first mortgage. You could lose your house if you get behind on the payments.

 

You have to qualify for the loan just like you had to qualify for your first mortgage. While it is possible to get approved for a home equity loan with less than sterling credit, it will come with strings attached. For a home equity loan for bad credit Aurora residents will pay a higher interest rate, and the amount they are allowed to borrow may be reduced.

 

Who qualifies for a home equity loan?

 

Before you can get a home equity loan in Chicagoland, you must have about 20% equity in your home. In order to be approved for a loan, your credit score will have to be 620 or higher. You will get the best interest rate if the score is over 680. A credit score of 580 or lower on a credit scale of 300 to 850 is considered bad.

 

Your debt-to-income ratio (that’s your gross monthly income minus all the debt payments you make every month) can’t be higher than 43% for most lenders to approve you.

 

You have to prove that you pay your bills on time and that you don’t owe the IRS any back taxes. If you’ve gone through bankruptcy, you may have to wait five to six years before you’ll be considered for a loan.

 

If you need fast cash but know you can’t meet the minimum requirements to get a home equity loan, what are your options? Home equity lines of credit or HELOC requirements are about the same as home equity loans.

 

Skydan Equity Partners has the Answers When the Lenders Turn You Down!

 

Our sale and leaseback option gives you the cash you need without the hassle of proving you’re worth the risk. Turned down for a home equity loan bad credit Aurora residents? Skydan is the home equity loan alternative.

 

We don’t care what your credit score is, how much debt you have, or whether you’re behind on your taxes. With Skydan Equity Program you:

 

 

If you’re a homeowner in need of financial help, but can’t get it from traditional lenders, give us a call today. We want to work with you.