The number of bad credit equity loans providers is increasing nowadays. They may be called different names and may have slight differences when it comes to specific rules but the opportunity to be approved of loan despite having less equity or none at all to offer is great.
Some loan providers which allow bad credits for home equity can permit as low as 500 in credit scores but with appraisal of over 80% loan to value. Some may even provide up to 125% loan to value ratio such as the case with 125 equity loans. Loan to value refers to the actual amount received for loans in relation to the value of the real estate property used to secure the loan.
Traditional loans especially those from major financial institutions require extensive background checks. Aside from credit standings, other factors are also speculated. Those who have a history of credit counseling such as debt consolidation, debt settlement, and other forms within 2 to 5 years are less likely to be approved of loan. Those with bankruptcy declarations on the other hand cannot receive any for 2 up to 7 years long.