Need a personal loan for bad credit

Guest 0.10 Dollars($)

Hi,

I recently bought land (5 acres) in Henry County, Georgia. I own the land, and am currently building a home on it.

I need a personal loan, and would like to use my land as collateral (since I have a credit score of only 630). I would like a loan of at least $20,000.

Any advice of help would be greatly appreciated.

Thanks.

marshak

chrisburns · Posted: Sun Dec 09, 2007 6:32 pm Post subject:

How much is the land worth?

YOu can expect to get up to 50% of what the land is worth as the maximum loan amount.

0.10 Dollars($)

Hi Marshak,

Like Chris sais, unless you bought the property outright, or put at least 60% down when you bought it (depending on the total value), then this is probably not a viable option. Once the home is built, a home equity line might be an option, but in today's financial climate, the guidelines for seconds and heloc's is tightening up, dramatically ,or disappearing alltogether with some lenders.

If you have a longstanding relationship with your bank, I would start their and request a personal line of credit...which is like a credit card, in that there is no collateral.

You could look at an advance on one of your credit cards...none of these are great options, b/c the interest rate will be high. If you plan to pay it off when you roll your contruction loan so that it will be a short term debt, then these are not horrible options.

Last, but not least, be sure that taking on this new debt will not affect your qualifying ability on your new home. Everytime you increase your debt , it could tip the scale to a point that might make you difficult to be approved. In today's climate of tightening guidelines, it is wise to plan your moves carefully.

Kim

kpatrick · Posted: Mon Dec 10, 2007 6:19 am Post subject:

Oops! Wasn't logged in, that was me above...
Kim

0.10 Dollars($)

Hi all,

Thanks for replying.

I bought the land outright for $70,000. I have the title.

I only need a loan of $20,000. Would you happen to know of lenders that could help?

Thanks!

marshak

Caron · Posted: Tue Dec 11, 2007 5:15 am Post subject: RE: loan with land as collateral

Hi Marshak,

Welcome to our forums.

It's good to know that you're building a home of your own. But if a personal loan is what you require, there's no way you can use the land as the collateral. If at all, you use the land as the collateral, then it has to be a land loan. Or else, you can go for a construction loan keeping the land and the improvements as the collateral. After the construction period, the loan is often converted into a permanent mortgage.

If you are looking for a lender to help you out with a construction or land loan, you may have a talk with some of our community lenders. The lenders in our community offer different types of loan program that suit borrowers having different financial situation and credit profiles. In case, you are interested, you may send us your request for mortgage quotes along with the minimum details.

As soon as we receive the request, we shall pass it on to our community lenders and they shall try to match their profiles with your loan requirement. And, if they can do so, they'll be able to provide you with the mortgage quotes. Thus, you can come to know how much you can qualify for and what are the possible loan programs you can go for.

Good luck

scherzeroni · Joined: 05 Jan 2008 Posts: 51 18.77 Dollars($)

Caron gives excellent advice. Be sure when contacting lenders you specifically speak with construction loan lenders who can go into more detail on how to use your land and "down payment". They can give you all the information you need.

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