Financing in 65020>Question Details

Sandidee, Home Owner in Camdenton, MO

I own my home outright in Missouri, but I have bad credit I am wanting to get a home equity line of credit is this possible?

Asked by Sandidee, Camdenton, MO Mon Jul 25, 2011

I am wanting to remodel my kitchen and pay off my bills, my husband passed away 2 years ago and thats why my credit is bad, but I did pay off my house which I thought was most important since my income was so much lower than my husbands was. Any help on this matter would be greatly appreciated..

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I know this answer is late, but check with your Housing Department, HUD, Fannie Mae, even Veteran Affairs if it applies. Alot of times there are funds available for home renovations if you are in a target area, elderly, or disabled.
0 votes Thank Flag Link Wed Nov 16, 2011
A home equity line of credit typically is in 2nd position on title of a home, meaning if the home goes into foreclosure they are the 2nd to be paid off, and so loans in 2nd position tend to have tougher qualifying requirements - higher credit scores, etc. A traditional cash out 1st mortgage may be the easier loan to qualify for. The attraction of a HELOC (Home Equity Line of Credit) is that it typically has lower fees (sometimes none), which a traditional 1st mortgage cannot forego, however in certain situations a lender can pay for the closing costs on a traditional 1st mortgage.

You are likely only to find HELOC's directly from banks at this point in time, some banks still allow mortgage brokers to sell their HELOC's, but I'd still recommend you deal with banks as the fees will be less than if you go through a broker (they are more of a "complimentary" loan program for brokers to offer their clients when the situation warrants them, rather than something that brokers concentrate on marketing).

Like I tell everyone, if you have bad credit and are applying for a mortgage you first need to know exactly what is on your credit bringing your scores down, when it happened, if it's owing, paid, etc. as well as what your credit scores are. If you don't know that information then you'll be operating in the dark. You can get your credit reports from and you can get your credit scores from - once you know that information you should be able to approach any lender and say "This is my credit situation, these are my credit scores, do you think you could work with me?
0 votes Thank Flag Link Wed Jul 27, 2011
Hi Sandidee,

I just saw this post after answering your new question...

When you say you have bad credit, sometimes your meaning & the bank's meaning of bad credit are different. Your credit may be good enough to secure a second mortgage. You may want to start by asking your bank about a second mortgage. They should be able to give you an answer in a couple of minutes.

Good luck,
0 votes Thank Flag Link Tue Jul 26, 2011
Does anyone have any other suggestions?? Thank you.
0 votes Thank Flag Link Tue Jul 26, 2011
Reverse mortgage is foolish, plus then you would not need the loan as it would be stupid to remodel a home that is no longer yours
0 votes Thank Flag Link Tue Jul 26, 2011
No offense to Michelle, but I would be VERY careful before going the reverse mortgage. i have heard horror stories. you may want to check with your banker (if you have had a long standing relationship with them) and ask them for advice. Alot of times because of this situation you are in there are things that they may be able to do.

By the way, I am so sorry to hear about the passing of your husband. I know it must be hard.

I would love to hear about the outcome. you can contact me at
0 votes Thank Flag Link Tue Jul 26, 2011
No I am not 62 or older, so I can not do this, thanks though....
0 votes Thank Flag Link Tue Jul 26, 2011
No I am not 62 or older, so I can not do this, thanks though....
0 votes Thank Flag Link Tue Jul 26, 2011
If you are 62 or older you may want to check into a reverse mortgage. Here's a link to some information on that type of loan.…
0 votes Thank Flag Link Mon Jul 25, 2011
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