Home equity loan with bad credit

November 8, 2022 By : Quick Insurance Guru Floral Separator

When one has a bad credit score, it can be difficult to qualify for a home equity loan.

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It isn't impossible either. Some steps could help you increase your chances of approval.

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Step 1: Review your credit report

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Step 2: Calculate your equity and loan-to-value ratio

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Step 3: Calculate your DTI (and reduce it if possible)

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Step 4: Find a lender that accepts lower credit scores

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Step 5: Use a co-signer

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A co-signer with a higher credit score can get better interest rates for many borrowers with poor credit.

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THANKS FOR READING!

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