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Inherited a home and would like to finance renovations. We are young and do not have good credit. Can we get a home equity loan?

My husband and I are being given his grandparents' home. They are going to live in assisted living and we will be taking possession of their home. We want to take out a home equity loan of $100,000. The current appraisal of the home is around $500,000, their is no mortgage. My husband and I are in our mid-20's and really have no credit. Would a bank let us use the equity to finance the renovations with very low credit? by scarte_543_215 from Atlanta, Georgia. Jun 11th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

There are options available, but there's more to financing than just a credit score. Income, job, and previous credit are all considered when determining eligibility... to be sure, The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 11th 2012
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Yes they would. Are your grandparents quick deeding the property to you?

Jun 11th 2012
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Rob Storm (BinaNat)
#22 ranked lender in Georgia - 1 contribution

Another option would be a private lender. Please call to discuss.Rob StormBinaNat CapitalDirect Private Lender770-714-4554rob@binanat.com

Jun 12th 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

Home Equity loans (HELOC) can be more difficult to obtain if you don't have much credit, or low credit scores. The most flexible HELOC is probably available through a local credit union. There are other options such as "cash out" refinancing of the home on a conventional of FHA insured mortgage which is more expensive in fees but you would have a long term (30 year) fixed rate. It really depends on your situation and qualifications including credit. If you don't have sufficient credit right now I can recommend was to help you strengthen your situation over a few months or more. I'm in SC (Charleston) but can also lend in GA. Feel free to call or email me at 843-343-6383 or pdumouchel@primelending.com and we can see what options are available. Just be careful not to shop with multiple lenders and end up with more than a couple credit inquiries which can reduce your credit score and make it more difficult to qualify.

Jun 12th 2012
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Mark Simon (mark.simon)
#9 ranked lender in Delaware - 83 contributions

As the others shared there are more details to review for a final answer. We are often placing young individuals with credit challenges. Give me a call and we can review the details, give you a plan to secure an offer with the best rate and terms. Mark 800-485-1387 Extension 107

Jun 12th 2012
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