Fair credit home loan refers to a special kind of homeowner's loan. Payments, which have been made all throughout, can be taken advantage of. Since there's no home equity gathered in such a short time, this type of loan disqualifies those who have just bought a new home. Payments made for mortgage over a few years however qualifies one for home loan.
The paid fraction of the mortgage is referred to as home equity. For example, if you borrowed a $150,000 housing loan and have paid for it over the course of two decades then you may owe around $60,000. The remaining $90,000 is what is called home equity. You can obtain a loan for the equity which has accumulated and use your house as collateral.
Home equity loan rates are smaller compared to original mortgages and other loans which makes the payments also lower. Home equity loans are usually used for home improvements or remodeling projects.