Hi everyone. I'm currently rebuilding my credit, but I need about $25000 to pay off all my charge offs and get my credit entirely cleaned up. I have the income to support a home equity loan and I have about $175,000 in equity in my home. My current DTI is about 35% and my FICO 8 scores are EX 595 EQ 628 TU 615
I'm military but NFCU is out of the question as they are two of the charge offs. I am a USAA member but they wouldn't even give me vehicle loan back in March so I used Cap one. I'm hesitant to do any hard inquiries for this right now so figured I'd ask you experts if you knew of any way I could make this work. I have a lot of equity and decent income on my side, but my credit is not the best obviously.
I also have a paid off vehicle worth about $10,000 and a paid off boat worth about $11000 I could toss in a collateral if that makes any difference.
Thanks for any advice and help.
Talk to a mortgage broker. They may be able to do a cash out FHA refi.
Thank you for that suggestion! I called a local broker yesterday that had high ratings. We ran all the numbers and they pulled my scores and looks like I'll be able to do a cash out refi of $320k which will put about 60K in my pocket which is more than enought to pay off all my past due debts and still have a lot of cash left over. Never dreamed I'd even qualify.
Did you shop and compare? It's an extremely competitive market right now. Most lenders will match offers.
I was able to lock in @ 3.375 with $50k cash out on 9/4. I had 8 Loan Estimates. My Credit union, along with 2 other best lenders, provided rate, lender credit and closing costs matching. I pitted the 2 against each other, then took the best LE to Canvas Credit Union here in Denver.
$250K loan amount, including $50k cash out, against a home value of $400k - LTV 62.5%
30 Yr Fixed Conventional
3.375 - no origination with $934 Lender Credit
$875 (Appraisal, credit report, fllod cert, tax service and income verification)
$995 Title services (I shopped these, down from $2600, $2300 and $1250)
So bottom line - $1027 Closing Costs or ~0.4% of loan value. I did not include taxes, prepaids and escrows for obvious reasons.
Last minute, I shopped the final LE, just to be told by multiple lenders, "lock that in and take it to the bank!" and "Hell of a deal!" Boom!