Posted: Thu Jun 18, 2009 9:03 pm Post subject: we need a loan
tim owns this out right and dosent have the best credit. He was recently laid off and recieves state aid and has two teenage children living here with him. Why cant he use his home as colatarol and get a personal loan?
He can definitely use the home as a collateral and get a mortgage. But the fact that he has a not-so-good credit and has recently been laid off, will not work in his favor when he applies for a loan. How badis is credit? is it below 600 points?
As Jerry states, since he lost his job and also do nto have a good credit score, it may be difficult to get the loan. The bank would like to know, how is he plannign to make payments
Also old is this person. Is he close to retirement by any chance?
If yes, he cna always look at the option of reverse mortgage
Reverse mortgage is a nice option as realgeni told but it is available for only senior citizens and as the OP has said he does have two small children it can be deferred from that he is not too old where he can apply for reverse mortgage.
If person is taking a loan as against property in order to start a small business then bank will not have any reason to deny the loan because the repayment of the loan can be justified by business purpose.
if loan is taken other than business purpose then it will be really difficult to convince bank officials that HE WILL REPAY THE LOAN.
btracybee
