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Profile picture for user2661380

A LOT OF EQUITY BUT CAN'T GET A LOAN!

Obviously, my credit needs repaired which is one of the reasons I'm looking for a loan. My house is valued at $200,000...I'm interested in borrowing $75,000. There are no mortgages or other loans on the property. We didn't originally finance the house it was a cash deal so I can't even go back to the bank and ask to refinance the house when there is no payment history and now that my credit stinks they'll never okay a loan anyway. Can anyone offer any suggestions? Does anyone know of a company that lends when your credit is bad?
  • December 09 2012 - US
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Answers (5)

Profile picture for user2661380
I never heard of a manual underwrite. Could you please explain it?

As far as selling the home I realize I could do that but I don't want to sell it...there is enough equity in the house  that I should be able to get a loan...I just need to find the right lender.

I had tried one "hard money lender" but the cash was never going to touch my hands! I needed to ask their permission for any expenses and they would decide if I could have the money or not. Example: I told them I wanted to do some updates...like finishing the bathroom in the basement. I was told we already had 2 1/2 baths so that wouldn't be approved! I thought the whole thing was ludicrous...it would increase the value of the home therefore if I defaulted it would have been to their advantage. They also said if I wanted to pay any bills I would have to call them and they would make the payments. Call me crazy but if I'm going to pay huge amounts of interest and fees with my house on the line...I want the money in my hand to do with as I feel needed.

Thank you to everyone that has offered a suggestion! I really appreciate the time you have taken to help me.
  • December 11 2012
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Profile picture for doralgate
How about finding as lender that will do a manual underwrite? Yes you won't  go though the automated system but if your house is worth that much you'll likely find someone taking on that risk.
  • December 11 2012
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Profile picture for JAKEBAXTER
You could always sell your home if you really need the money. 
  • December 11 2012
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Depending on how bad the credit is, you may be able to find a lender that will do a home equity loan for you, but again, at much higher rates than a traditional mortgage. I would talk with a credit counselor to see how you can improve your credit in other ways.
  • December 10 2012
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Profile picture for wetdawgs
There are hard money lenders who will lend with bad credit and lots of equity, but plan on interest rates 3 to 4x higher than market rate interest rates.
  • December 09 2012
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