125% Home Equity Loan FAQ

Who can apply for a 125% home equity loan?

Any homeowner is eligible to apply. In most cases the value of the property must be at least $40,000. The property must be owner-occupied. Non-owner co-borrowers are not allowed... all borrowers must be listed on the title.

How can I use my 125% home equity loan proceeds?

You can use the money for debt consolidation, home improvement or major item purchases ( boats, cars). If you choose the cash-out option you can use the loan proceeds as you choose... such as college tuition, or investments.

What kind of interest rate will I have to pay?

The 125% home equity loan program is credit score based. Your credit score will determine your interest rate.

How long will it take to get my money?

Most 125% home equity loans fund within 2 weeks after all requested documentation has been received and signed off by the underwriter.

Do 125% percent home equity loans have any closing cost?

Yes. Closing cost for 125 percent home equity loans vary from lender to lender and can typically average 5% -10% of the loan amount, however, all closing cost, except appraisal fee (if applicable), can be deducted from the loan so there are no out of pocket expenses.

**I have a bankruptcy on my record, can I still apply for a 125 ltv home equity loan?**

Prior bankruptcies and consumer credit counseling generally must be discharged a minimum of 3-7 years depending on the lender and you must have re-established credit with no major late payments since the discharge. Prior foreclosures are usually not eligible.

How much employment history is required?

Generally, to be eligible for the 125% home equity loan program You must have a minimum of 3 months history with your current employer and 2 years history in your field with no gaps between employment. Self-employed borrowers must have a minimum of 2 years continuous self-employment history. The prior 2 year average of the net self-employment income figure reported on your tax returns is the figure that most lenders will use for qualifying purposes.

Are first time home buyers eligible?

This depends on the lender. A first time homebuyer is considered to be anyone who has less than 12 months mortgage payment history on their credit report within the last 3 years.

How much cash-out can I receive?

The amount of cash-out you can receive on the 125% home equity loan program in most cases will depend on your credit score. The higher the score the more cash-out you can receive.