If you want to get a second mortgage so you can make renovations to your home, it can be difficult if you have poor credit.
A second mortgage can use a home’s equity as collateral for a second home loan, allowing up to 80 percent of a home’s value to be borrowed. However, getting a second mortgage through a home equity loan or line of credit can be difficult if you don’t have a credit score of 680 or better.
While high home equity will make a second mortgage less risky and may compensate for poor credit, there are other options:
Instead of getting an additional loan on your home, the cash you need is refinanced into one loan with one payment.
Even if you have bad credit, a cash-out refi is less risky for the lender…