Can I Get a HELOC With Bad Credit?

This article will explore how Tennant Lending can assist individuals in securing a Home Equity Line of Credit (HELOC) even with bad credit.

Michael Tennant

Mar 28, 2024 - 1 min read

Can I Get a HELOC with Bad Credit?

Securing a HELOC with bad credit is challenging but not impossible. Lenders, including Tennant Lending, evaluate your credit score, home equity, and debt-to-income ratio to determine eligibility.

What is Considered Bad Credit?

Bad credit typically refers to a FICO score below 580. Tennant Lending advises that while this may limit options, various programs are designed to help those with lower credit scores.

How Does Home Equity Affect My Application?

Your home equity plays a crucial role in obtaining a HELOC. Tennant Lending suggests that substantial equity in your home can sometimes offset the impact of a lower credit score.

What Other Factors Do Lenders Consider?

Lenders also assess your debt-to-income ratio and payment history. Tennant Lending emphasizes the importance of demonstrating financial stability and a strong repayment history, even with a lower credit score.

Can Improving My Credit Score Help?

Improving your credit score before applying for a HELOC can significantly increase your chances of approval. Tennant Lending offers guidance on strategies to enhance your credit, potentially leading to more favorable loan terms. Please reach out with specific questions.

Tennant Lending is a licensed, premier mortgage lender based in Northern California. Access exclusive real estate insights by clicking "Join Tennant Lending" below.