125% Equity Home Loans
By
Levetta Rivera
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. Also, some 125 percent equity home loan
lenders may require seasoning on the length of time
you have lived in your home. Three months is
normally the minimum.
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, or automated value model (avm) can be
used. An avm is a computer generated assessment of
your home's value which is based on recent home sales
of comparable houses in your neighborhood.
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About
the Author
Levetta Rivera
is a successful mortgage broker and publisher of the
following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com
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