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Home Equity Loans without Equity?
By: Richard Revis
Even if you haven’t built any equity on your home yet or if you need more money
than the amount you have built on your home, you can get a 125% home equity loan that will let you get a quarter more money above your home value.
This means that if you just bought your home and you financed 100% of its value, you could
still get 25% of its value from a home equity loan. If your home value is $200.000 this
implies that you can borrow up to $50.000. If you have already paid 10%, you could borrow
$70000 and so on.
Loan Requirements
In order to qualify for this kind of loans you need to meet certain requirements.
Requirements are mainly associated with your credit score and history. Nevertheless, each
lender has its own requirements and you can always consult with them weather you’ll
be able to get a loan or not. Bear in mind that your credit report will be pulled so you
might want to check everything is in order before applying as you may get declined and
this will affect your credit score even more.
Additionally, your credit score will not only determine your eligibility but it will also
establish the loan amount you’ll be able to request, the lending schedule and the
repayment schedule. You won’t always be able to receive the full loan amount in hand;
you may get the money in 3 or 4 separate installments.
Some lenders require that you spend a certain amount of time living in that home prior to
granting the loan. This period of time is not fixed and depends on your credit score and
on the lender; some of them do not require it at all. But normally two months residing in
the property is the minimum period of time required.
As regards to appraisal, most of the time, it can be bypassed. This is due to the fact
that property values tend to be stable over small periods of time, and chances are that if
you’ve bought the property or refinanced within a small period of time, they’ll
use the value concealed in that contract in order to calculate the new loan figures. This
is almost always true if you’ve bought your home or refinanced within twelve months.
Perfect for home improvements
This kind of loan is a great option for those who didn’t have enough money to buy a
home and undertake house improvements at the same time due to the lack of funds. With a
125% Home equity loan you can get the finance needed to make house improvements without having to pay
for high interest personal loans.
So if you need the extra cash and you’ve made up your mind, just search the internet
for 125% home equity loan lenders and request loan quotes. Compare fees and interest
rates, and once you’ve decided which option is best for you, apply for the loan. In a
matter of days you’ll get approved and you will be able to get started.
Article Source: http://www.articlerich.com
Richard Revis is an expert in the financial industry and knows exactly how to aid you
in getting approved for the loan or credit card you need. He has helped a lot of people to
obtain personal loans, car loans, unsecured credit cards and many other products
regardless of their credit situation. If you want to learn more about Home Equity
please visit his site: www.badcreditloanservices.com
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