HELOC ?’s - Bad credit

[MM21]

I am looking to apply for a HELOC to do two things.

1. Renovate a paid off home that i recently was left by my father who passed.

2. Pay off all of my credit cards since i have so many with high balances currently.

Here's my current credit situation.

 Bad/low credit scores (2 60+ late payments, high utilization

Fico 8  558-636

Fico 5, 4, 2 553-608

Im not sure if i could get a HELOC on my own with my current credit scores or if it is possible to have another party (my girlfriend of two years) to either co-apply (her scores are phenomenal 780+)

Any help or info is appreciated!

[VAMortgageGuy]

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@MM21 wrote:

I am looking to apply for a HELOC to do two things.

1. Renovate a paid off home that i recently was left by my father who passed.

2. Pay off all of my credit cards since i have so many with high balances currently.

Here's my current credit situation.

 Bad/low credit scores (2 60+ late payments, high utilization

Fico 8  558-636

Fico 5, 4, 2 553-608

Im not sure if i could get a HELOC on my own with my current credit scores or if it is possible to have another party (my girlfriend of two years) to either co-apply (her scores are phenomenal 780+)

Any help or info is appreciated!

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With your scores, FHA is your only option.

[ShanetheMortgageMan]

Having good credit is usually a requirement for most HELOC programs, so you might be aced out yourself.  VAMortgageGuy is correct that FHA might be your best option if you wanted to be on the mortgage.  Another alternative would be a hard money loan, but those have worse terms than FHA.

Does your girlfriend live in the home and would you (and she) be OK with her being added to title of the home and taking debt out in her name?  If so, then if her income qualifies there should be HELOC lenders out there willing to lend.  

[rosco75]

I would caution you about putting such a investment into a girlfriends name. Unless you plan on getting married soon. 

[MM21]

Thank you for the replies, i did speak with a mortgage specialist and another loan specialist today at a local credit union.

What they brought to my attention was trying a Heloc or a personal loan to help consolidate my current credit card debt and at a lower rate and then reapplying down the road a little later when my scores have improved.

I was ideally dreaming of doing a one stop process but it sounds like i will need to do some work to improve my credit scores.

Yeah i think adding anyone to the title at this point would not be something i would do purely out of self preservation.