I live in NC. I own my home, with no mortgage. I'm considering a home equity loan to make home improvements. My familys' only source of income is social security disability. How would this affect my chances at a loan?

This is not the best of scenerios if you ask me. You are just setting yourself up for a foreclosure down the road. Why jeapordise your home for the sake of improvements?

Hello nut:

If you're an older person, have you considered a reverse mortgage?

excon

From my experience, the only concern would be the disability. Many lenders wish to see that the SSI will continue for at least the next three years. SSI will not furnish any documentation to support that. However, a letter from your doctor stating that it is in his/her medical opinion that you will be disabled for at least the next three years will typically satisfy underwriting. Furthermore, as your home is free and clear, you are a very low risk borrower, and depending on your credit, may be able to utilize one a variety of niche options, such as a no income/no assets loan (NINA) if that doesn't work out. Lastly, a line of credit may not be your best option. As the home is free and clear, and I assume your not breaking the bank with home improvements, I would explore a low rate first mortgage at short term, maybe 10yrs. Have your lender run a short term first against a HELOC, see which one makes the most sense for you. You should be fine, good luck.

How much can you afford to pay on a loan each month? Start saving that amount each month in a credit union until you have what you need. Just feel and enjoy your financial strength and sleep well.