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Jefferson Park in Chicago is a prime real estate spot for buyers looking for single detached homes, apartments, and other residential buildings. In 2019, the median price was $180,000. It is a balanced market with months of inventory ranging between three to six months. Indeed, any homeowner can use their debt-free collateral to access more financing for further investments. Then, are you struggling with a home equity loan for bad credit in Jefferson Park? That is, is your bad credit score limiting your loan options? Consider a home equity loan alternative. Let’s explore your options below.

 

Home Equity Loan for Bad Credit in Jefferson Park

 

A home equity loan is a financing option available to homeowners, which uses their homes as collateral. Here, the lenders grant loans of up to 80% equivalent of the property value. Still, these second mortgage loans take into account your mortgage balance on your first loan when you were buying the property.

 

For example, if your home value is $450,000 and you have $150,000 outstanding on your initial mortgage, then you can only get a home equity loan of up to $300,000. Other considerations include: –

 

  • Having a minimum credit score of 620.
  • Your current debt to income ratio should not exceed 43%
  • Timely repayments of your current loans and financial obligations
  • A stable source of income or proof of active employment

What If You Have a Bad Credit Score?

 

Now, if you are late on your mortgage payments, are unemployed, or are servicing huge debts, you could end up with a bad credit score. Still, unlike traditional loans, homeowners have a better chance of getting a home equity loan even when they have a bad credit rating.

 

Suppose you have more debt-free property in your name in Jefferson. Then, a home equity partnership will give you access to more credit regardless of your credit score. But, there is a price to pay. The lenders will charge high-interest rates and demand more collateral for your loan. And, when you already have other financial obligations, this expensive financing may lead to you losing your home when you default.

 

Then, is there a home equity alternative that is favorable for you? Yes, if you require a home equity loan, yet you have bad credit to your name, consider taking the following steps: –

 

  1. Review your current credit report. To do so, go to the AnnualCreditReport.com. Here, you will see your credit rating for free each year. That way, you avoid surprises when lenders claim that your credit score is not favorable.
  2. Check your debt to income ratio. This way, you will get an estimate of how much more funding you can access via a home equity loan.
  3. Confirm the value of your collaterals. Do you have sufficient equity to support your loan application?
  4. Determine the loan amount that you need. Avoid taking more than you need and ending up paying unnecessary interest charges. Again, taking insufficient capital may lead to future cash flow problems that can be even harder to resolve.
  5. Gauge the interest rates on home equity loans from different lenders.

The Skydan Equity Program

 

The Skydan Equity Program is a hassle-free home financing alternative to homeowners in Jefferson Park. Here, your credit score rating is irrelevant. Instead, the Skydan Equity Partners look at the level of equity that you place as collateral.

 

Then, do you know of homeowners who say – I’m losing my house? The Skydan Equity Program is a welcome solution that ensures you never have to give up your hard-earned investment. With no prior credit checks or mortgage payments, all you have to do is call and secure the financial freedom you need.

 

Conclusion

 

Accessing a home equity loan bad credit in Jefferson Park can be challenging, but possible. More so, when most lenders check on the level of the bad credit score, the Skydan Equity Program can help you avoid foreclosure regardless of your credit rating. Then, take advantage of this program to get through tough financial times.