Posted on: 17th Dec, 2008 12:33 pm
I desperately need to borrow $25,000 till my house sells. My house was appraised at 254K and I owe 105K on it. I have bad credit but I have more than I want to borrow in the bank. Do you think anyone will loan me this money for debt consolidation and home improvement? Any FHA programs or government help? My mortgage payment are not behind. Bank of America turned me down.
hi jeyre,
did bank of america give you any reasons for denying the loan? as far as i can understand your situation, you can look for a home improvement loan. depending on your credit credit score (you haven't mentioned it), if the lender agrees to give you a home improvement, you can use some of the funds for home improvement while a certain portion of it for consolidating your debts.
however you should inform the lender that you will not be using the home improvement loan for the improving the property but also for consolidating your debts. this is only because some of the lenders may have objections to it.
you can either take a home equity loan or a heloc for home improvements. a home equity loan is a type of loan in which the borrower uses the equity in his home as collateral. it can be used for home repairs, paying off medical bills or college education. it will create a lien against the borrower's house, and reduce the actual home equity. a home equity line of credit is a loan where the lender agrees to lend a maximum amount within an agreed period and the collateral is the borrower's equity in the house.
you can also check out the given calculator to calculate the payments if you consolidate debt into a home equity loan:
http://www.mortgagefit.com/calculators/consolidatedebt-equityloan.html
thanks
did bank of america give you any reasons for denying the loan? as far as i can understand your situation, you can look for a home improvement loan. depending on your credit credit score (you haven't mentioned it), if the lender agrees to give you a home improvement, you can use some of the funds for home improvement while a certain portion of it for consolidating your debts.
however you should inform the lender that you will not be using the home improvement loan for the improving the property but also for consolidating your debts. this is only because some of the lenders may have objections to it.
you can either take a home equity loan or a heloc for home improvements. a home equity loan is a type of loan in which the borrower uses the equity in his home as collateral. it can be used for home repairs, paying off medical bills or college education. it will create a lien against the borrower's house, and reduce the actual home equity. a home equity line of credit is a loan where the lender agrees to lend a maximum amount within an agreed period and the collateral is the borrower's equity in the house.
you can also check out the given calculator to calculate the payments if you consolidate debt into a home equity loan:
http://www.mortgagefit.com/calculators/consolidatedebt-equityloan.html
thanks