125% Home Equity Loan - A Great Option For Little Equity

by Terry Edwards - Date: 2007-02-25 - Word Count: 322 Share This!

Have you only recently purchased your home and just haven't built up any equity in it yet? Are you needing a loan to make some home improvements, but don't know where to turn? A 125% home equity loan could very well be the solution to your needs.

As a second mortgage, a 125% home equity loan is designed to give the borrower up to 25% more of what your home's value is. As an example, let's say your home is valued at $150,000. The mortgage still has a balance of $150,000. You could get a loan for $42,500 with type of lending program.

The key in being approved for this type of home equity loan will be your credit score. Because of the structure of this type of loan, financial lenders are looking for well qualified borrowers.

You can find lenders on the internet who specialize in these loans. Each has their own criteria and rules. Some may require that you've owned your home at least 6 months, while others will use your credit score to determine the maximum amount they will loan you.

A 125% home equity loan shouldn't require any type of an appraisal on your property. Since you've only lived in your home a short amount of time they will base the loan amount on the sale price of your home.

If you have lived in your home more than 12 months, lenders may use a drive-by appraisal, a current tax assessment on the property, or an AVM. This is simply an estimation of what your home is worth based on what other home in your neighborhood have recently sold for.

So, if you don't have a great deal of equity built up in your home, don't give up. Look into a 125% home equity loan.

All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active and do not edit the article in any way.

Related Tags: home equity loan, second mortgage, 125% home equity loan

You can discover more about 125% Home Equity Loans as well as more information on everything to do with home equity loans, visit us at http://www.HomeEquityLoansA-z.com

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.

Recent articles in this category:

Payday Installment Loans: Ideal Funds That Supports Your Impending Needs by Robert Deveau
Any impending monetary crisis will be tough to deal with, if you are not having adequate funds. Neve
Educational Loans -helps To Secure Bright Future by Kelly Meliss
Education is said to be the most important thing in ones life. It not only helps to improve the stan
One Hour Payday Loans No Faxing - Fastest Option Of Acquiring Money by ElizabethS
Nowadays, loans have become a common thing among the UK people as needs are rising while the salary
Tenant Loans - Instant Monetary Support For Non Homeowners by Antonio Vargas
Are you looking for an unsecured financial help that does not demand security to place against the r
Payday Loans No Faxing - No Verification And Delay by gregghall
So many times, the approval of the loan gets delayed due to the lengthy paperwork and documentation.
Bad Credit Car Loans -helps You Finance A Car by Monikakim
Are you in need of a new car? Here bad credit car loans can offer you finance as you need. Perhaps y
Logbook Loans - Friendly Deal For Car Owners by gregghall
Everyone knows that logbook is a paper issued by driver and vehicle licensing agency. This important
Same Day Loans For People On Benefits - Quick Money For Instant Financial Hold by BenGannon
Urgent and unpredictable demands might arise at times when you are not financially prepared. To deal
3 Month Payday Loans - Feel Free With Longer Repayment Option by ElizabethS
Are you looking for the loan that can give you small cash, but for longer duration? Are you worried
Loans For Bankrupt People - Look Forward For Financial Stability by BenGannon
Financial acronym or injury and inability for reimbursement to the concerned are known as insolvency

Most viewed articles in this category:

Unsecured Personal Loans - Loan for the Common Man by Eric
Loans can broadly be divided into two types - unsecured loans and secured loans. Secured personal lo
High Risk Unsecured Personal Loans at Nominal Interest Rate by Kara Wade
Today, unsecured loans gave grabbed the market as more and more people are opting for it. The loan m
Personal Loans-Don't Suppress Your Financial Needs by Joanne Clive
Personal loans can be segregated into a secured and an unsecured loan option. If you are a homeowner
Take the Loan; Show No Reason by A. Wilsoon
If you are in need of a loan and want to utilise it for any purpose without showing the reason to th
No Compromise With Your Pleasure, Have Your Own Car by Joanne Clive
On a fine morning, you get up to see the sun shining brightly in the sky, leaving the world bathed i
Subsidized And Unsubsidized Student Loans! by Kate Ross
These loans carry different loan terms and different requirements. According to the student situatio
Interest Rate: The Key Factor on Car Loans! by Mary Wise
There are such wide variations in APR between lenders that you can end up overpaying on your car loa
Fight Against Tight Financial Situation With Personal Loans UK by A. Wilsoon
It is always better to prepare yourself for unforeseen or unexpected expenses. If you are not born w
Advantages And Disadvantages Of Lack Of Security On Loans! by Sarah Dinkins
The unsecured nature of these loans attracts tenants but homeowners as well. However, in order to de
Unsecured Personal Loans-A Loan Everybody Is Eligible To Procure by Joanne Clive
Unsecured personal loans cater to urgent day-to-day financial requirements, and have become very pop