Question:

If I have real bad credit score can I still get a HELOC?

Answer:

Yes, there are bad credit score HELOC products widely advertised. You may like to use one of it if you are a homeowner in need of cash. The HELOC rates will be higher as the lender is taking a risk with you if they lend you money and you default. The HELOC lender comes second if they are not the primary lender who holds your first mortgage and the HELOC lender may never be repaid should you default. And if your credit score is bad, you will get even higher rates than you usually would with a HELOC.

However, if a HELOC is used smart, you could take a HELOC and keep it for 1 or 2 years and refinance. You should have improved your bad credit to qualify for a prime rate loan refinance.

Buying a House with HELOC and Bad Credit

If you have bad credit and consider buying a house with a combination of a first mortgage and a HELOC, you may like to consider using a second mortgage, too. Some calculations will be necessary to make, if you want to find out if a HELOC or a second mortgage will make a better 80/20 or 80/10/10 loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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