Shopping for a home equity loan or HELOC when you have bad credit. Even if you have poor credit, you can qualify for a home equity loan or HELOC if you have a significant amount of equity in your home. Whether you’re looking for a home equity loan or a HELOC, lenders have a set of guidelines you’ll need to meet to qualify.A home equity loan is a type of second mortgage.Your first mortgage is the one you used to purchase the property, but you can place additional loans against the home as well if you’ve built up enough equity.home equity loans allow you to borrow against your home’s value over the amount of any outstanding mortgages against the property.Home-Equity Loan: A home-equity loan , also known as an "equity loan," a home-equity installment loan , or a second mortgage , is a type of consumer debt. It allows home owners to borrow against.A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral.The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.  Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education.A home equity lets you borrow money, while using your house as collateral. Home equity loan is another option available to homeowners who may have a tight cash situation but have have a valuable house.Your home is not just a place to live, and it’s not just an investment. It also can be a source of ready cash should you need it through refinancing or a home equity loan. Refinancing pays off.While the upside of borrowing against the equity in one’s home can be highly beneficial under the right circumstances, the downside of tapping home equity is that a person could ultimately lose their.If you’re interested in a home equity loan, we’ll help you choose the best home equity loan lender. Our top picks of 2019 have an efficient application process, explain loan options clearly and.