Equity loans with bad credit?

[Snowdrift]

Does anyone know if it is possible/not usuriously expensive to get a home equity loan when:

a) the house is completely paid off--this would be the only loan/mortgage on the house, and the loan would be for only about half the house's value

and

b) the borrower is a creditor's nightmare: student loans, little real income (other than student loans), history of bankruptcy (but no problem paying bills since bankruptcy)...all sorts of issues.

My dad insists that with the house owned free and clear we will be able to borrow money against it fairly cheaply despite our horrific credit (please don't judge me on the basis of my credit. BK was due to medical issues. It's tough to be 22, jobless, homeless, having lost all family support literally overnight, and chronically ill. But I digress.) I'm a bit skeptical. But I can see how a house worth twice the amount of the loan that is completely lien-free would be great security for a lender.

Experience/knowledge with this sort of thing?

[caeden&connersmom]

I doubt you would be able to.

Our credit is really bad right now (We are carrying 2 houses cause our old one hasnt sold yet and we got behind on those payments)

Anyway, we have over $100,00 in equity in our new house and we can get ANY of it out (Tried to take out enough to cover a loss just to unload our old house, mind you we are employed and have more than enough income coming in for an additional loan minus the other house) We were told again and again and again that sorry, we cant do anything for you, your credit is too bad. Several tried to refinance our mortgage and taking out extra cash at about 15.95% (Our current rate is 7.46%), Ah NO!

Anyway, credit plays a HUGE role in it, equity doesnt mean much if you dont have the credit or income.

If you do find someone let me know! ;P

You *may* be able to do a mortgage if you own your home outright though, not really sure. I dont think yould be able to get a straight home equity loan thugh.

[Herausgeber]

It's not just your credit that's going to give you trouble. It's the lack of real, steady income (student loans don't count) to pay it back.