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Home Equity Loans with Bad Credit


Accessing cash today is nearly impossible.  Banks are no longer lending, which makes it incredibly difficult to dig yourself out of the proverbial hole.  Finding a lender that will offer up home equity loans with bad credit can be difficult, but thanks to growth in the lending field, it is no longer impossible.  Private lending groups have become incredibly popular for multiple reasons, taking some of the strain off of homeowners across the country.  The emergence of these groups isn’t surprising, given that certain economic factors have given rise to the need for higher-yield investment opportunities, and when we consider that lending is at an all-time low, the demand for mortgages for people with bad credit is at an all-time high.

Economic Woes

The real estate market is always one of the first places we can recognize the state of the national economy.  When properties are being bought and sold quickly, we know that things are turning upward.  When properties are being listed for months without a single interested buyer, we know that lending has slowed to a near stand-still yet again.  The lending practices of banks, the sagging credit scores of millions of Americans, and of course, the rock-bottom pricing seen on properties today all point to a shift in the borrowing practices of potential or existing homeowners.

The Lenders

The capital necessary to fund mortgages for individuals interested in getting home equity loans with bad credit doesn’t come from the banking sector.  With standard banking practices, money is acquiring for lending by offering guaranteed returns on deposit investments.  But, because banks have little to no interest in lending currently, the returns that they are offering are minimal.  This has led to an increase in interest on the part of those with capital, meaning that they are now offering it up to help potential homeowners get a home loan for bad credit situations!  They receive a higher return on their investment, and because these loans are often secured by the deed to the property, they are often as safe as loaning your capital to a bank for a guaranteed return.

The Borrowers

Anyone seeking to make the “first home purchase” or attempting to get back into the swing of things by purchasing another home after a bankruptcy can utilize these private lending firms.  By being much more lenient and granting mortgages for people with bad credit, these organizations can give you the assistance necessary to take advantage of some of the incredible pricing currently seen in the real estate market.  While some of the interest rates may be higher, it can make sense to take advantage of these loan opportunities to reduce credit card debt or refinance your home that is currently on a variable mortgage rate.

Getting home equity loans with bad credit isn’t as difficult as it once was.  The lending dynamic has shifted, eliminating the “middle-man” and putting capital investors directly in contact with interested borrowers – the results speak for themselves.

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