Depending on the state you live in, you probably won't be able to get a home equity loan for the full value of your property. Many states allow only for 90% of the value, while Texas and a few other states allow lenders to extend loans based on just 80% of the home's value.

If you have poor credit and want to get a home equity loan, here's what you need to have before more lenders will risk lending to you: a credit score above 500-540 (depending on the lender), a full-time well-paying job, and the ability to repay what's essential a second mortgage.

Benefits of home equity loans and home equity lines of credit are numerous, but the primary ones include the fact that you can pay them out over an extended time; the fact that there are often no closing costs; and, with lines of credit, you often have to pay only the interest payments.