Home equity loan with bad credit option in Logan Square
Home equity loans are a fantastic way for homeowners to get the money they need for a variety of reasons, such as debt consolidation, home repairs, college tuition, or even taking a dream vacation. However, some homeowners with bad credit need a loan for more significant reasons, such as preventing foreclosure and paying off your debts. They seldom believe there is any other alternative for accessing the money other than a home equity loan. That is a fallacy.
Lenders That Offer Home Equity Loan for Bad Credit in Logan Square
When a homeowner has bad credit, simply giving a reason for requiring a loan is rarely enough for a lender to give their approve the applicant, even for something as serious as avoiding bankruptcy or foreclosure. While it may seem unreasonable, they must ensure there are sufficient measures taken to reduce risks and also comply with lending regulations. After all, they have the federal government and stakeholders to answer to. Still, even with lenders only loaning up to 80 percent of the value of equity in the home, those who seek a home equity loan bad credit Logan Square are often too high of a risk.
Application Process and Preparation with Bad Credit
A borrower with an acceptable debt-to-income ratio and a substantial amount of assets can still have difficulty qualifying for a traditional home equity loan if they have bad credit. However, a subprime lender may consider them. Whatever the case may be, the best way to apply for a home equity loan with bad credit is to be fully prepared. The homeowner should check their credit report before applying and correct any errors that appear, even if it means delaying the application. All requested documents, such as bank statements and pay stubs must be up-to-date.
It might be tempting to ask for the full amount of the available equity, but it is more advantageous to request a smaller amount. Of course, that limits the amount of money that’s borrowed and usually defeats the intended purpose. It’s also very important to compare interest rates with other lenders. The amount of interest that is paid throughout an equity loan can be shocking, especially with a subprime lender. Be mindful of the fees associated with a loan for bad credit, which can also be very costly. Lastly, consider a home equity loan alternative.
Home Equity Loan Alternative for Bad Credit, Poor Credit or No Credit
SKYDAN Equity Partners believes in giving homeowners a second chance and does not use a credit score to qualify them for our home equity loan alternative program. We don’t use a credit report at all. A homeowner’s equity is all that’s needed with our sell your house and rent it back option.
SKYDAN Equity Partners is committed to helping homeowners who choose the sell your house and rent it back option by:
- Purchasing a homeowner’s primary or secondary home as long as equity is available
- Approving a lease agreement for a mutually acceptable timeframe for the homeowner to remain in the home with no payments and zero interest
- Providing a written agreement that allows the homeowner to buy back the home for a specified amount
- Giving homeowner full rights to sell the home above the agreed sales price and keep the additional proceeds
Our sell your house and rent back option is used to pay off high-interest credit cards, bankruptcy relief, preventing foreclosure, paying delinquent taxes and a wide array of other reasons. We partner with homeowners to assist them in gaining access to up to $250,000 in home equity, and they typically receive the money within 30 days or even less.
Interested in getting started and unlocking up to $250,000 in home equity? Apply now!