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Full time teacher for 1 year. 7k salary, credit score 648. 65k in student loan in defferment until I get my masters in 2015 20k in car loan in good standing, no active tradelines. I own house outright, just bought it for 80 k, cash. Can I use it as collateral for a 15k loan? or would I.need better more established credit?
37k, whoops. lol.

So would are home equity loans, the same as a secured loan with the house as collateral? or could I maybe not get a home equity loan, but could still put up the house for a loan?

2 Thoughts on Iffy credit. Secured loan Vs home equity loan (same or different?)?
  1. Reply
    February 5, 2014 at 5:16 am

    Yes, you can use the house for collateral but you may not qualify for any kind of home equity loan. Your credit score may be enough, but if your salary is only $ 7K annually (God I hope a full time teacher makes more than that), your debt to income is too high to qualify.

  2. Reply
    February 5, 2014 at 5:47 am

    With the corrected info, I am 99% sure you can get a HELOC – because yes your house is the security. [I think “secured loan” vs HELOC is just a difference in banker talk.]

    A late word after the fact: At today’s mortgage interest rates you should have financed your house and had cash left over for the car, and whatever this new bill is.

    Now a game plan to consider: REFINANCE {instead of HELOC} your home [15 yr mortgage – or maybe even a 5 yr fixed ARM** to get the lowest rate] to get the money you need. And if the car loan rate is higher than the mortgage rate, pay off the car, too. AND this will give you some money in the bank as an emergency reserve, and the extra funds can be cannibalized to make your mortgage payments for awhile until your cash flow stabilizes.

    ** BE VERY CAREFUL if you are considering these options!! You must know what you are doing! {In fact, put your game plan in writing, so you remember why you did it, and stay on track.}

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