The answer to this question is fairly simple: A good credit and regular income. To some degree this is true for both the conventional and the interest only home equity loans. Let us tackle first credit ratings. Definitely your credit will help you get a equity home loan. Now it all depends on the kind of credit that you possess. Is it at least a decent rating? Or is your credit a bad one. To put it simply, you are fortunate if you possess good credit score as you will have no problem with you decide that you want to apply for a home equity loan.

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On the other hand, if the kind of credit that you have is the bad type, still secured homeowner loans are still possible to obtain. However, you must expect to have home loan rates that are higher than that if you have a better credit. Therefore, it can do you good if you can improve first on your credit score by working harder towards mending your debts.

Another important factor that can help you get an equity home loan is the degree of your ability to pay back the money that you might obtain.Lending companies has the means to know your payment capacity; this is by studying your regular income as well as debt-to-income ratio. Most loan groups and lender will have to make sure that you do not allow your total debt amount to go past 38% of the income that you earn every month.