Profile picture for PPrea

cash-flow challenge / strong equity situation

All

Looking for some counsel. 

Own a house that currently has $850K in positive equity....loan $950K / value $1.8m. Going through a tight cash-flow scenario. Credit score has been plummeting due to ongoing late payment scenario / starting new business.

Our current mortgage broker has declined a house equity situation on my income ($170K per annum) / credit background. Wife not working / home mother. We do not want to change her situation. I'd say my credit score is below 500 now.

Seeking a $50K loan scenario taking into account strong house equity situation to pay outstanding bills. Do not want to sell the house

Would appreciate ideas and avenues to pursue ....websites, types of loan, government help, good people to talk with

Thanks
 
  • January 06 - Oakland
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Answers (5)

Profile picture for gator70
With a FICO that low, I suggest a Hard Money Lender. However you could lose the house without a exit strategy you could comfortably execute. You may need the hard money lender and a home sale. A bad decision at this point could make a bad situation much worse. 

There are signature loans available up to 15K. But with your FICO would make the rates in excess of 30%.

Consider anything that may get your payments current with putting the house at risk.
  • January 06
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You are in a hard situation, you have a home with a large amount of equity in it however because you started a business you are having trouble with the remaining mortgage.... what type of business do you have?  Is it one that is producing any revenue yet?  Can it be analyzed and given a worth?  I ask because the last thing you want to do if you can help it is tie your business expenses to your personal ones.  If at all possible try to take a loan on your business, because God forbid you can't make the business work you would still be protected.  Also if your business entity has a Tax ID number then it also can have a credit profile. 

Lastly try local institutions.. credit unions and savings banks often they underwrite loans based on you not your credit score

Food for thought... Good Luck!
  • January 06
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Profile picture for Jarvis Team
Most of the government programs are set up to help out with loans that are more "conforming."  You have a lot of equity.  Unfortunately, your best bet may be to sell the home and take the cash and buy something outright, this would also give you startup capital for your business.  Credit will be an issue here as well. 
  • January 06
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Profile picture for CA Direct Lending
I would recommend the hard money loan as well. Besides selling your hem, I see no other options for you to get $50k cash out of it based on what you've told us.
  • January 06
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Profile picture for wetdawgs
You may wish to consider a hard money lender.

What you are telling us is that you have a mortgage of  $950k  (5.6x your annual income - a stretch) and a recent history of late payments.    Perhaps it is time to consider selling your current home and down sizing.

  • January 06
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