Low FICO score equity loan

[Christine Edwards]

Hi,

I ended up having to finish a rehab of my home with my credit cards and they are now maxed out.   I didn't realize that maxing out my credit like I did would drop my credit score so much.   It went from a 746 to a 629 over the summer.

I am looking for an equity loan to consolidate the majority of my debt.  

Home value $300,000

First Mortgage $116,000

Looking for $100,000

DTI before the new $100,000 loan is .30

I don't have any late payments or anything on my credit

I make more than enough money to qualify.  

If this is something you can do, or if you have an idea how I can get myself out of this predicament, please reach out.  

Thank you in advance for any help/solution you can provide

Christine

[Jay Hurst]

Quote from @Christine Edwards:

Quote from @Jay Hurst:

Quote from @Christine Edwards:

Hi Brittany,

Thank you for responding.
It is my primary residence.

I was looking at refinancing, and with the score am only finding FHA loans. So $4700.00 upfront with monthly MIP. I understand it may be my only option with the situation I have ended up in. Just finding it hard to swallow spending/throwing that away another $5000.00 on the house. It has been a major CLUSTER once the contractor came in, demo'd everything and then quit. Paid hell getting a decent contractor in here that wasn't already booked for the summer.

Anyways...I just thought I would ask here to see if there was any other way.   Per my credit score, I am a terrible risk, but I am really not.  Just frustrating, ya know.

Thanks again

Christine

Is the property located in Texas? if so, FHA does not offer cash out loans in Texas. The reason is the Texas fee cap that the upfront MIP you mention above violates.

I have found that 60% loan to value will often get Fannie and/or Freddie approval as long as your score is over 620.   Using your numbers that would get you 75k~ in cash which is not a 100k, but not that far off.  

Well good news for me. An appraisal just came back at $345,000. Nobody I have talked with have mentioned the 60% LTV. Can you suggest someone to call.

No, the property is in MIchigan

 Start with the lender who ordered the appraisal.