Question:

Are there home equity loans for people with bad credit?

Answer:

As every product, home equity loans for people with bad credit have their niche. Even though many lenders will feel hesitant to give credit to people with bad credit, there are subprime lenders who will be happy to do it.

Have in mind when applying for a home equity loan that your house will be at stake and you may get too high rates. Despite tax deduction available for home equity loans, you may not be able to make your loan payments if interest is too high.

Sometimes a borrower will rather have the loan, even if at 12.5%, and will not make attempts to resolve credit issues first.

Home equity loans for people with bad credit can be dangerous.

Before accepting a high cost loan, you may like to see if there are other options for you. For example, a credit counselor may recommend another lender, or could help you improve your credit so that you don't necessarily need a bad credit home equity loan; or they could find out that you don't really need a bad credit loan, if your score is right on the edge between prime and subprime financing.

It is recommended you try something else before you try bad credit loans. Home equity loans, as any other loan types, surely can be funded by subprime lenders. Is this really what you want for yourself?

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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