If you’re someone who is really struggling to pay delinquent property taxes, you may be considering a loan to help you catch up. This is not a bad idea. However, while there are several types of loans available for this, not all of them are created equal.
In this article, we’ll take a look at the best loans for delinquent property taxes and what you need to know before taking one out. Let’s take a look!
Learn about home equity loans
If you have equity in your home, you may be able to use a home equity loan to pay off delinquent property taxes. Home equity loans are secured by the value of your home, so they often come with lower interest rates than unsecured loans. However, like many types of loans, they can put your home at risk if you fail to pay the loan. To qualify for a home equity loan, you’ll need to have enough equity in your home to cover the loan amount. This will therefore require an assessment. You’ll also need to have a good credit score and a stable source of income.
Discover personal loans
Personal loans are another option for homeowners who are behind on their property taxes. Unlike property tax loans and home equity loans, personal loans are unsecured, meaning they are not backed by collateral. This can make them a good choice if you don’t want to put your home at risk, but they can also come with higher interest rates and shorter repayment terms.
This means that whilst they can be a good option if you only need to borrow a small amount of money they may not be the best choice if you need to borrow a larger sum because, in the end, you will be paying a lot more.
Explore property tax loans
Property tax loans are specifically designed to help homeowners who are behind on their property taxes making them the most suitably designed type of loan. These loans can be used to pay off the taxes due as well as the interest, penalties, and other fees that have built up. One huge advantage of these loans for delinquent property taxes is that they are usually easier to qualify for than other types of loans. Since the loan is secured by the property, the lenders are often willing to overlook credit problems or other issues that might disqualify you from other kinds of loans. This means that not only are they the best option but also the most accessible for most homeowners.