Home loan??

my house is worth about $550k… My credit score is 559 right now, due to my excessive credit card and student loan debt… nothing has ever been late, it’s just that i have excessive amounts of these debts… i make about $2,600 dollars a month, and i’m wondering if i will be able to get a home loan for about $100k so that i can pay everything off… (my house is 100% paid off)… will i have a problem getting this home equity loan?? should i even both applying or should i just wait until i pay down my credit cards more?? advice anyone?


I have no idea where you live, however I am kind of thinking you will need to get a private money loan first, pay off all the debt and wait upwards of 12 months to refinance the private money with a conventional finance loan!

I think right now you have to have a 620 plus mid fico score just to qualify for conventional financing and we used to do some loans projecting change to future credit score when debts were paid, I think with the financial melt down everyone is required to meet the minimum conventional score!


I think you should wait to pay down your credit card and then apply.

one problem you might have is your Debt to Income ration may be way off, and as I understand it, you can’t count the money you will get from the loan to reduce your DTI (which makes absolutely no sense to me),I understand they changed the rule to that a cople of months ago, but talk to a broker, when you pay off the debts your FICO will jump up 100 points or so

Consider whether your credit card debt skews your debt-to-income ratio to the point where it will be difficult or impossible for you to be approved for a loan