As a homeowner you can select to take out a home equity line of credit or a conventional loan. The main advantage of conventional loans is that you have little at stake if don't pay back the loan - you will still be able to keep your home. However, you will probably pay a higher interest rate than that of a home equity loan. With HELOCs you will enjoy a much lower interest rate, but if you do not pay the balance off, you will lose your home. Generally, HELOCs are recommended to people with bad credit.