Home Loan Lending Today

Home Equity Loans When You Have Bad Credit

2007-08-30T10:07:00.000-07:00

If you are considering refinancing your property or wondering if you should get a home equity loan but are concerned about your credit history, don't give up. You could avail of several other options. Even if you have a bad credit history, it is possible to refinance your home or to get a home equity loan or line of credit.

The lending industry has established new guidelines that make it much easier to refinance your existing mortgage or to get a home equity loan. Don't worry that your credit is bad as there are several lenders ready to provide you a loan package that will meet your needs at an interest rate that is affordable.

Several people choose the refinance method to make home improvements or to consolidate a current debt load such as credit card debt. Many lenders will offer you as much as 125% of what your home is worth, even if your credit history is less than perfect.

The factors that will determine approval of your application include your current mortgage package, interest rate and what terms you are on, how long you intend to stay in the home, and the amount of overall debt you have. When you have equity in your home, you might getter a lower rate than if you have no equity or only a little.

A home equity line of credit is something that works like a revolving account and your home is used as security against the loan. When you get a home equity line of credit, you will be approved for a set amount of credit. The maximum amount that you can withdraw at a given time will be determined by your credit limit.

Home equity lines of credit typically come with a variable rate of interest, though you may be fortunate enough to find a fixed rate. How they work is that you will have a set amount that you will be able to borrow at any given time, with you not being able to borrow more until repayment of the earlier amount. Sometimes, you will be given a specific schedule as to when you can borrow the money from your current available credit.

Receiving a home equity line of credit is often the ideal solution for those that want to remodel, put kids through college, or if extra cash is needed in the event of emergency financial situations. It puts your money to good use, and you will have the peace of mind knowing that you have enough to help you through a rainy day.

Refinancing your existing mortgage, or obtaining a home equity loan has been a great solution to many Americans looking to meet their financial plans. Even a person with poor credit can find a lender to cater to his needs.

The author - Ajeet Khurana - writes on finance topics, among others. He recommends: Mortgage Refinance and Home Equity Loans and Real Estate.

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Technorati: home loan, home lending, home equity load

No Income Verification Home Equity Loan

2007-08-22T11:45:00.001-07:00

By Levetta Rivera

A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.

The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.

In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.

For more information on no income verification home equity loans, or to compare rates and programs of home equity loan lenders visit http://www.equityloansource.com

Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com

Article Source: http://EzineArticles.com/?expert=Levetta_Rivera

Technorati: home loan, equity home loan, second mortgage, equity loan

Home Loans - What To Look For When Applying For A Home Loan

2007-08-20T21:33:00.000-07:00

By Joe Stevens

When considering home loans, there are many things to think about. Before you begin shopping for your dream house, take into consideration the various lending options that you have. Although you have many lenders out there to work with, you want to find the right loan for your needs. This takes into consideration your credit rating, your employment history and your income. It also means taking into consideration the various types of funding on the market.

For those looking for a mortgage, there are many things to think about. Home loans can be fixed or variable in terms of interest. This means that the interest rate would change, or not, depending on the prime index rates. You may be able to qualify for loan solutions such as FHA or VA lending. This provides you with some government backing which helps you to qualify for a lower interest rate. Still, the bottom line is that the loan should be affordable which means a low interest rate as well as the shortest term possible.

Finding the right mortgage does not have to be overwhelming, though. Many lenders will walk you through your options and help you to see on paper the benefits of going with one type of loan or the next. Most importantly, you want to secure the type of loan that is right for your financial situation. How much value the house you purchase can have is dependant on the type of loan that you can qualify for. Shopping not only for your new house but also for the right home loans will help you to find the solution that is right for your life.

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Technorati: home loan lending, loan, borrow, bank loan, equity loan