Bad Credit and home equity loans in Arizona

Qualifying for a mortgage loan with bad credit or a Arizona home equity loans is a lot harder than it used to be in Arizona. That doesn’t mean it’s impossible, but the minimum standards are higher and it is a lot more costly. If you have poor credit, it’s more important than ever to shop around and compare different lenders. You’ll likely not only find a difference in their willingness to lend, but also significant variety in the terms they’re willing to offer.

First make sure your credit reports are accurate and that you’re not being penalized for bad information.  Credit repair services might promise to boost your credit score in return for a fee but there’s nothing they can do to improve your score legally so rather avoid them.

The impact of most negative items on your credit report begins to diminish after about two years if you can maintain a good payment record on your other debts over that time. In Arizona foreclosure stays on your credit for seven years and a bankruptcy for 10, but even here, the negative impacts begin to diminish after a few years, and you may be able to qualify for a mortgage again within three years of such an event, particularly if you have some Arizona home equity loan.

You won’t be able to take advantage of the ultra-low rates currently available in Arizona but an improved score later might ensure a better rate than you qualify for today with a poor score. If waiting isn’t an option there are other possibilities. One is to get a co signatory. (Bearing in mind that he/she will be liable for the full value of the Arizona home mortgage in the event you default)  You only want to go this route if you are certain you will be able to meet your obligations.

The Arizona home mortgage loan options currently available in Arizona are:
Fixed-rate which have fixed interest rate, payment amount and maturity date.

Adjustable-rate - and
Second mortgages either fixed or variable rate...

Two points to remember while you're comparison shopping: 

· A lender's lowest advertised rate is reserved for borrowers with above-average credit. If you have bad credit, it might be helpful to review Arizona rates by credit quality and loan type here.

· Review loan structures carefully. You can avoid unpleasant surprises by developing a thorough understanding of all aspects of your prospective mortgage loans.

Your best source of credit may be closer than you realize. The Arizona home equity loans you've built in your home can help you at every stage of life - for major purchases, a new car, college tuition, debt consolidation, home remodelling or improvements, and more. And interest on home equity loans is usually tax-deductible. 


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