Home Equity Loans in Illinois

A home equity loan in Illinois is a loan that uses the equity in your home as collateral. If you’re having a hard time getting approved for a personal loan, a home equity loan offers a low-interest alternative as long as you meet the requirements.

Home equity loan rates in Illinois are generally lower than credit card and personal loan rates because home equity loans are secured loans.

Depending on the lender you choose, you may be allowed to borrow 85 or 95 percent of the equity you have in your home. You’ll receive this money in a single lump sum with a loan period that’s usually between five and 40 years. You have to repay your loan in full before the end of your loan period. If you decide to sell your home, any unpaid debt will be paid using money from the house sale.

During the application process, you’ll be asked to provide W2s and tax returns. We also offer a no doc home equity loan if you’re self-employed or have non-traditional sources of income.

You have one very important decision to make regarding your home equity loan in Illinois: the type of loan you apply for. You can choose between a home equity loan (HELOAN) and a home equity line of credit (HELOC).

A home equity line of credit allows you to take out a line of credit using your home equity. Your lender will give you a set spending limit, and you can spend up to that amount like you would with a credit card. Variable HELOC rates in Illinois and monthly spending mean HELOC monthly payments can vary quite a bit. After five or 10 years, you can no longer draw from your account and must start repaying your line of credit.

Home equity loans are a simpler solution, allowing you to take out a lump sum fixed-rate loan using your home equity. Home equity loan rates in Chicago vary, so choosing a lender that offers a competitive rate is key. If you decide to sell your home before your loan is paid off, the debt will be repaid using funds from the sale.

Both HELOAN and HELOC rates in Chicago can vary quite a bit, but they’re typically lower than credit card and personal loan interest rates. Take a close look at your finances and decide which type of home equity loan is right for you.

Applying for a home equity loan in Illinois can help you conveniently increase cash flow, but no loan is risk-free. Before you apply for a home equity loan, make sure you understand the drawbacks of home equity loans.

Some of the pros of applying for a home equity loan or HELOC include:

• You can quickly access money that you can use for various purposes
• Your can increase your home’s value by using home equity loan funds for renovations 
• You don’t have to sacrifice your mortgage rate for a home equity loan
• Griffin Funding offers competitive rates and easy online applications
• Lower interest rates can lead to smaller monthly payments compared to personal loans and credit cards

Some of the drawbacks of Illinois home equity loans include: 

• Taking out a HELOAN or HELOC can add to your total debt
• You can lose your house if you’re not able to repay a HELOAN or HELOC
• If you don’t monitor your spending with a HELOC, you can spend more than you anticipated

Home equity loans aren’t a perfect solution for everyone, but there are benefits. Consider your financial situation and your ability to repay your loan before applying to avoid unnecessarily adding to your debt burden.

If you’re interested in applying for a home equity loan in Illinois, there are requirements you need to be aware of. So, how does a home equity loan work after the application process? Here’s what you should know:

1. You’re typically required to have at least 20 percent equity in your home before you can get approved for a home equity loan. Some lenders will approve you with as little as 15 percent home equity.
2. Your credit score and debt-to-income ratio are used to determine your creditworthiness, so make sure you’re in good standing. Consider paying down your existing debt before applying for a loan. You’ll need to have at least a 640 credit score and a DTI ratio below 45%.
3. Lenders will also look at your mortgage payment history and income to make sure you can repay your loan. A history of timely mortgage payments is a key part of getting approved for an Illinois home equity loan.

If your credit isn’t perfect, keep in mind that there are steps you can take to improve your credit and reduce your debt-to-income ratio. The Griffin Gold app makes it easy to monitor your credit score and the value of your home, create a budget, and take control of your finances. If you’re planning on applying for a loan, make sure you qualify with Griffin Gold.

Getting approved for a home equity loan can provide flexibility by helping improve cash flow, whether you plan on renovating your home or covering emergency expenses. Before applying for a loan, consider your options and make sure you meet the minimum requirements for a home equity loan.

Griffin Funding eliminates the hassle of applying for a home equity loan in Illinois with competitive rates and an easy online application. You can apply in minutes, so you get access to your funds faster. Apply online or contact us to learn more about applying for an Illinois home equity loan.