If you
are a homeowner in need of a home equity
loan but you have not yet built up any equity in your
home, don't despair. A 125 percent equity home
loan may be the answer. A 125 percent equity home
loan is a second mortgage loan that allows you to borrow up to 25%
more than the value of your home. For example, if your home is worth
$100,000 and you owe $100,000 on the mortgage.
this loan program would
allow you to still borrow up to $25,000. The 125 percent equity home
loan is offered by various online lenders. Each lender has their own
qualification and loan term guidelines but generally this is a credit
score driven loan program.
Credit score driven means that you have to have a certain credit
score to qualify for the loan. In addition, your credit score usually
determines the maximum loan amount you may qualify for and the maximum
cash in hand you may receive.
When it comes to a property appraisal, most 125 percent home equity
loan lenders do not require you to obtain one. They generally
will use the purchase price of your home as the value if you have
lived in your residence for 12 months or less. If you have lived in
your home over 12 months, a recent tax assessment, simple drive-by
appraisal.
