About Home Equity Loans for People With Bad Credit. Part of the series: Home Equity Loans & Foreclosures. Getting home equity loans with bad credit can be almost impossible during a poor economy. FHA will allow cash refinancing on a first mortgage to people with bad credit, but that is the only option. Find out more about how declining real estate prices affects home equity loans with information from a mortgage broker in this free video on home equity loans. Read more: http://www.ehow.com/video_4766084_hom...