Home Equity Loan 2
A home equity loan is one that gives you the chance to borrow money against the equity of your home. The total equity of your home is determined by finding the difference between the amount that the house is worth in the market and your mortgage repayment dues. The amount that you can secure from the loan, therefore, increases as the value of your property. You can either use the money that you acquire from a home equity loan to make home improvements, pay for your child’s education, consolidate your high-interest debts, or any other need that you have.
Unlike most of the other loans that you can apply for at a bank, home equity loans have less strict rules. Your home serves as the security or collateral for your home, making you less of a financial risk to the eyes of the lender. You can acquire a loan of up to 80% of the equity that you have in your home, and having higher equity makes you a more attractive candidate for the loan. Just like conventional mortgages, home equity loans have repayment terms. After securing the loan, you are required to make fixed payments that cover both the interest and principal.
When deciding whether or not you qualify for a home equity loan, lenders look into a number of factors, including how poor your credit score is. Although it is not impossible to get a home equity loan with a bad credit score, it might be difficult if your records are very tarnished. Not all lenders have the same terms, but most of them look for a credit score that is above 620. Additionally, some of them may require that you have an equity of at least 20% in your home. They may also need that you have a stable source of income or employment and good payment history.
Keep in mind that even if you get approved for a loan with a credit score that is much lower than 620, you may be subjected to higher interest rates. It can make the overall cost of your loan much more elevated. The specific lender that you approach may also have some additional restrictions on the total amount of money that you can acquire from a home equity loan if you have bad credit. Fortunately, with our Skydan Equity Program, can secure funds from the equity of your home even if you are rejected from a home equity loan because of bad credit.
Skydan Equity Home Program
Through our equity home program, we offer homeowners a home equity loan alternative, especially if they cant secure one because of bad credit. We are a real estate investment company, and we do not follow the same procedures used by banks, mortgage companies, or other lenders. Our equity home program entails a sale and leaseback agreement. Homeowners can secure funds and lease their home back from our company, for a period not exceeding two years.
The homeowner isn’t expected to make any monthly payments until the agreed period expires. They are only required to select their preferred repayment method when the period elapses and they can either opt to;
- Sell the property at the value was agreed upon
- Purchase the property back from outr=r company at its original amount plus the total forgone rent during the agreed period.
Through our program, homeowners can secure funds from the ‘equity of their home, without having to face the approval restrictions that are typical to traditional loans.
Advantages of our home equity program