Questions about Home Equity Loan (not HELOC)

[Anonymous]

I'm wondering about the answer to this too. I have 100% equity and would like a HE loan or HELOC to buy a rental property. I have been told to try with my CU. To embarrassed to ask though with my horrible credit report.

Anyone in this podition?

OP,

I started a new thread for better exposure. 

lexie

[fishbjc]

OP, I've been doing research on this as well.  I was told that the middle score needs to be a 620 minimum.  You may be able to find someone who can help you.

[Anonymous]

I have been going through this very thing over the past month.  I have a 695.

I was denied by one bank because they wanted a 700.  But I think those are strict standards.

I tried again with another bank.  They wanted a 680 but was denied because I was self employed for 6 months in my 2 year history.  I have been on my current job for 1.5 years.

Ugh! 

So I am paying down one of my cards to 0 to hopefully get to 700 and try again with the first bank in a month.

Is there anything you can do to raise your score drastically?  Like pay down high utilization?

[coterotie]

CU is going to be your best bet here.  Mine has a stated policy of 640, but in talking with the loan officer, she recently got one through with a 575.

Commercial banks are going to be tough.  How quickly could you clean up your credit?  Do you know why it is so bad?

[Anonymous]

Thanks for the thread start Lexie but the title is slightly off. I'm undecided about HELOC or HEL.

I bit the bullet and I emailed my CU. They said they have a minimum FICO requirement of 680! When I asked if there was any flexibility with 100% equity they stopped answering me. LOL! Oh well, I knew I had a ways to go yet.

[coterotie]

Email isn't the way to go.  You need to sit down with a loan officer and explain things.  An email is too easy to give the canned response to.  It is also admissible as evidence....

---

@Anonymous wrote:

Thanks for the thread start Lexie but the title is slightly off. I'm undecided about HELOC or HEL.

I bit the bullet and I emailed my CU. They said they have a minimum FICO requirement of 680! When I asked if there was any flexibility with 100% equity they stopped answering me. LOL! Oh well, I knew I had a ways to go yet.

---

[Anonymous]

---

@coterotie wrote:

Email isn't the way to go.  You need to sit down with a loan officer and explain things.  An email is too easy to give the canned response to.  It is also admissible as evidence....

---

@Anonymous wrote:

Thanks for the thread start Lexie but the title is slightly off. I'm undecided about HELOC or HEL.

I bit the bullet and I emailed my CU. They said they have a minimum FICO requirement of 680! When I asked if there was any flexibility with 100% equity they stopped answering me. LOL! Oh well, I knew I had a ways to go yet.

---

Evidence? That sounds scary!

I'm pretty much resigned to waiting a while though before i take the next step. Cleaning up my credit is hard work but it took me a while to get in this mess I'm just so thankful it's not taking the same amount of time to get out! 

On the plus side I have found a mortgage broker who is willing to talk to me. He's said he can work with scores of 620+. I'm not there yet but it's a goal.

---

[StartingOver10]

Primrose, consider going to a portfolio lender in your area. They hold and service their own loans so they can be flexible on the criteria. Your situation as described (100% equity) is something they work with regularly (at least the one's here).

It doesn't hurt to check a couple of local or regional lenders in your area to see which ones have portfolio loans. (A portfolio loan is not sold after it is originated).