Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Mortgage
Profile Image

Question By
manhattman

2 Contributions
2 People Helped
Low score but house paid off... want an HOA
Because of the recent recession my credit score dropped dramatically. There were late payments when clients of mine went bankrupt owing me money causing a domino effect.

The good news is that I sold my San Francisco house after 22 years in a very hot market. Since my score is down to 630, I couldn't get a new mortgage but because of San Francisco's crazy market, I was able to purchase a home for all cash in Seattle. Ive been self employed for 28 years and have very little CC debt but want to get a home equity line of credit for some home improvements and pay off a $25K IRS debt.

My paid off home is work 460K and I want to get a line of $60K. I want to stay away from the big banks who let me know. Should I loo at a local one and would this be difficult to obtain?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
82 Contributions
304 People Helped
Most Helpful Response

Shouldn't be difficult

Helpful to 2 out of 2 people

You should be able to obtain a HELOC with little trouble considering that you have a lot of collateral.  I would shop around with local banks and credit unions if you want to avoid the big boys.  Schedule your time and do all of your shopping with them over the phone so you can get accurate information, but don't have to fill out an application.  Don't let them trick you into allowing them to pull your credit.  They should have no problem giving you a fairly accurate rate based upon  your known FICO score, income, and other factors.  If they refuse, move on to someone else.  Once you find your best deals, apply and see what they are offering.  Don't think that their first offer is their best offer.  I have used newspaper ads and flyers to negotiate closing fees and even rates.  It is a competitive market for mortgages like this.  There is really little or no risk to the lender as you're asking for a Loan-to-Value of under 20%.

Good luck and let us know how you came out!

2 Contributions
2 People Helped

Typo

Helpful to 2 out of 3 people

I meant a Home Equity Line of Credit and not an HOA. Typo.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.