http://texas-home-equity-loan.com/are-home-equity-lines-of-credit-or-loans-easierharder-to-get-approved-of-than-personal-loans/ Best Home Equity Loan Information, Tips, Guide And So Much More. Fri, 12 Mar 2010 09:30:22 -0700 http://wordpress.org/?v=2.8 hourly 1 http://texas-home-equity-loan.com/are-home-equity-lines-of-credit-or-loans-easierharder-to-get-approved-of-than-personal-loans/comment-page-1/#comment-6785 hamsterbabies Sat, 14 Nov 2009 10:55:27 +0000 #comment-6785 Equity lines are easier because you have collateral - the house. A personal loan is of course possible, but more difficult because you have no collateral. Equity lines also will have a lower interest rate. If he was rejected on the home equity, then he will most likely be rejected on the personal loan. The new debt would increase his debt to income ratio and Frannie and Freddie's guidelines are more strict due to the subprime bubble burst. Eliminating that debt will lower the debt to income ratio (they generally want less than 45%) and allow a home equity line to be approved if that was the reason for denial. Equity lines are easier because you have collateral – the house. A personal loan is of course possible, but more difficult because you have no collateral.
Equity lines also will have a lower interest rate. If he was rejected on the home equity, then he will most likely be rejected on the personal loan. The new debt would increase his debt to income ratio and Frannie and Freddie’s guidelines are more strict due to the subprime bubble burst. Eliminating that debt will lower the debt to income ratio (they generally want less than 45%) and allow a home equity line to be approved if that was the reason for denial.

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