equity loan
Can I get a home equity loan with no seasoning requirements with bad credit?
We just purchased a home and want to consolidate some bills to create a better cash flow. The problem is we’ve only been in the house for two months. I’m being told that most companies require 6 months to 12 months seasoning to get a home equity loan. Any suggestions?
That is correct, most seasoning times are 12 months were you can get a home equity home but they will use the purchase price or appraised value whichever is less. The bigger problem would be the credit issue, home equity loans and other types of subordinate financing is a higher risk for lenders and therefore unless the loan to value is very, very low they may not approve it. Lenders always look at what financial position they might be in if the property is foreclosed on and poor credit has been an indicator of future payment patterns, if you had put a large down payment at the purchase then they may consider this has a compensating factor with a low loan to value. I provided you a website for FannieMae, whose guidelines for lending approval are used nationwide (but not subprime) hopefully this helps.
What would be better, a home equity loan or refinance at lower rate to add on to my home?
I’m wanting to add on to my home but I’ve never used a home equity loan. I have used the refinance method where you borrow a little extra to add on. What would be the best now, with the way the economy is and the interest rates unstable?
Forget the economy and interest rates in general. The question is, what’s best for you? Compare the two scenarios, overall costs of a refi verses the home improvement loan. If you are lowering your first mortgage rate at the same time you take cash out, usually that’s the winner. I’d have to have details to make a call but it’s your details I need, not the economy or who won the super bowl. If you need more info, send me an email.
