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.

Apply Now For A Free Quote

Get Your Free Equity Loan Quote Now Using LoanWeb

You will be able to receive multiple quotes by completing one simple application. You can then select the lender who offers you the best terms.

Lower your monthly payment

Free up cash for savings

Get cash-out and consolidate debt

Get up to 4 competitive quotes and then choose the best deal

Begin Here