Until 1998, home equity loans were illegal in the state of Texas. Fortunately, the law prohibiting homeowners from borrowing from their equity in Texas has been amended. Anyone who owns their home can now take out the excess equity they have created - this includes the owner of a house with bad credit.
Getting Approved for a Bad Credit Home Equity Loan
Bad credit home equity loan is one of the easiest loans that are approved. These types of loans are secured by your home, which means that you are the one to accept the most risk. If you miss payments, you lose your home. No matter how bad your credit is you should be able to get approved for a Texas home equity loan. You only have to prove to the lender that you can pay back the loan monthly.
How Bad Credit Affects Home Equity Loan Rates
Even though it is easy to get a home equity loan with bad credit in Texas, there will be a price to pay. This price is mainly in the form of interest. Having bad credit means that you will pay a higher rate than the average borrower. For example, the current rate on home equity loans in Texas is 8.16 percent on average. If you have recently filed bankruptcy or if you have more than a few bmmas on your credit, you can expect to pay a double-digit rate.
Comparing Home Equity Loan Lenders
A home equity loan can be one of the best ways to obtain money for debt consolidation, college tuition, medical bills, home improvements, and other big-ticket expenses. At the same time, you do not want to waste the equity built into your home. When getting a bad credit home equity loan in Texas, it is imperative that you take the time to compare and contrast lenders. Rates, conditions and lending fees can vary greatly. Be a smart shopper and make sure you get the best deal possible.
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