owner occupied owned free and clear and can't get financed

I am having trouble finding a bank that will work with me. I have a credit score in the high 500 to low 600 range due solely to the amount of money on my credit cards. I am trying to get a home equity installment loan to pay off the cards and get a little cash in my pocket. I own five other investment properties and have found that more than a few banks have kept their guidelines to a four loan limit, even though Fannie and Freddie has since changed their guideleines back to ten. I have also ran into a credit score issue, as all the banks I have spoken with won’t touch anything under 620, even given the fact that the low score is driven only by the credit cards that are going to paid off at closing. I’m curious if there are any banks out there that can have some flexibility in underwriting regarding the credit score under the given circumstances as well as meeting the guidelines for the ten loan limit? Please let me know any thoughts or suggestions!

How high (LTV) are you trying to go with the LOC?

Is this on your primary residence?

you can look for hard money but i can tell you right off the top that HML will not lend on owner occupied homes…If you are flexible make sure to tell the HML that you will sign off on the property being an investment property and NOT your primary…They may reconsider but doubtful incase of a default and homestead laws in your state…Tough situation…If you have enough equity in your investment props you can suggest to the HML that you are willing to cross collateralize your props to get a loan done…

This is my primary residence and I am trying to get 70-75% LTV, but told the bank I would take a lower amount if that’s what it would take to get it done. They seem to not care about that since they are stuck at the credit score and property limit issues. As to HML, I am seeking them as a last resort as I want to avoid all the excessive fees that come along with borrowing that way. I still can’t believe that so many banks have kept their guidelines at a 4 property/loan limit, even though Fannie and Freddie changed their guidelines back to ten ( I have been told by National City/PNC, Chase, and Bank of America).

Have you tried asking for a bill consolidation loan instead of a mortgage?

Yes, I have been very upfront with them letting them know that they can cut checks directly to the credit card companies to pay off the cards. I am guessing that by saying a “bill consolidation loan” you are referring to a home equity loan or cash out refinance. I am trying to get a home equity installment loan as a HELOC would only move my money from one revolving account to another; which would not help me improve my credit score. I could seek traditional financing, but would like to avoid the increased closing costs in comparison to an equity product. I also don’t have the option of doing an FHA loan as I currently have one on the property I recently moved from (and I don’t qualify for one of the several exceptions to have two FHA loans). Any other suggestions are appreciated, especially any regional/local banks in the northeast ohio area or larger banks that loan in OH that has at least a 10 property/loan limit and can work with my credit situation. Thanks!