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  • Home equity as collateral

    Just curious if I could use the equity in my home as collateral for a loan to purchase a mobile unit.

    I own (outright) my home and 10 acres of land (tax value of about 85,000), but have no working (liquid) capitol and my credit is not so perfect.

    It would be nice to hear from some others that may be in the same type situation as myself.

  • #2
    you can get a home equity line or refince your home since you own it you can just ask for the amount you need and make payments it cheaper than the line of credit. and even if your credit not so good. good luck

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    • #3
      equity as collateral

      I have a van that needs seriously needs to be replaced. Business is booming for me but I'm stuck between a rock and a hard place because once my van croaks on me that's it I'm done for because my van is NOT worth flopping a lot of money into. I had to file bankrupcty a few years ago due to a lot stuff piled up from my divorce so my credit is not so pretty either. I have done a lot of searching and filling out applications for whatever looked hopeful to get into. I don't know what all options you've searched so far. I rent my home and I can tell you the banks and other lenders want some sort of something as collateral, the question is would it be worth possibly losing or having a lien put on your home and land if for some reason it was difficult to make the payments the first few months if this is a start up situation?

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      • #4
        A huge amount

        use home equity in one way or another. You have to do the numbers, but if all else fails you can part time somewhere or sell the Van. I think a slightly used Van would be the easiest if one was not sure that the business would be viable, as for resale value.
        Money will buy you a pretty good dog but it won't buy the wag of it's tail.

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        • #5
          sbl

          Look into a small buisness loan.
          Your state taxes support your small business administration.
          Their advise should be free to you.

          Many women can get these loans and the importat part is your business plan.
          Your state wants you working and paying in taxes.

          I would think the grooming buisness in a box with the business plan set ups
          in it would work for you. I wrote a buisness plan once,A pain in the neck, by the way. Wish I had had a template to go by then. I went though my local bank that had a small buisness loan program set up, when we did the stable.
          I can't beleve they loaned me the money for the barn, but they sure did.
          They ONLY thing I had going for me was years in the business. It sure was not money. Of course if you can get your score over 650 it would help.

          Many people get divorced and have lower scores. It does not always mean you do not get the loan. You might have to pay higher interest for awhile, but small business loans are a little different duck.

          If you have a work history, and have been in the profession awhile, I would think your chances were good. I also like the liquidity of a van as you can sell it if you need to, and it would not be tied into your home if you needed to sell it. I would talk to your bank or small buisness administration.
          They are very helpful.

          I would however look into buying a home you could work out of. zoned right, your overhead would be way lower, part of your interest would be deductable, and some of your mortgage would too. You would also be gaining equity, instead of depreceating value. Even if you had to work part time somewhere else for awhile, while building your clientele, I sure would run the numbers.

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          • #6
            Finance the home into a mortgage. You can take the interest of the loan as a tax deduction.

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            • #7
              I guess I'll put it out there- figure out how much $ you need and save up for it. You don't need 60K like most groomers are led to believe. You can do it for 10k if you do it right, maybe less. My start up was 25k, and knowing what I do now I could have done it for 10 or 12k. Then when you start your business you are still debt free.

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