Confused about Home Equity Loan (not HELOC)

[lmg]

Okay - so I have a home that I have rented to own for nearly 20 years from my dad.  Last year, it was paid off and the title was moved to my name.  I have had PNC and my credit union tell us that they can easily get us approved for a home equity loan (for debt consolidation and home improvements).

The question - what are my options?  I am assuming that this is a home equity loan because we are using that as our collateral.  But I am reading about cash-out mortgages too.  Since my DH and I are both 1st time home owners, we have no experience with the mortgage world.  I keep seeing here that 620+ is that magic number for mortgage - does that include home equity loans too?

I am the primary bread-winner in the family.  We have been told by both companies that they will use my credit/income to figure the interest rate and his won't even come into play since he makes less, but will be included for income purposes.

So I am working my tincan off to get above a 620 and wondering if I even need to because we have 100% equity in the home?  Any thoughts anyone???

[lmg]

Oh yeah - for anyone interested, the CU only checks EQ and PNC said they will check all three and take my middle score to figure the interest rates.  I have a BK CH 7 discharged in 7/2005, all CAs eliminated except on TU (which 2 remain that will be off in the next week or so).  If TU is my low, I should be good with EQ and EX being my mid and high.  My DTI with DH is easily under 30%.  Home value is assessed at $123k and borrowing around 70%.  The home improvements we are going to do will add additional land and a freestanding garage to the property, so the value should go up after. 

Few late pays trying to GW without much luck so far, but credit now (without my cc pmts posted yet this month) are EQ 603 and TU 633.  My DH doesn't understand credit and decided to almost max out his cc last month (which I am AU) and waiting for those payments to post to hopefully bring my EQ up over 620 to be safe.  Scorewatch simulator says that payment should bring me up 646+ (crossing fingers!!!).

So do I need to worry about the score so much with a home equity loan?