100 ltv Home equity loans
What are 100 ltv Home equity loan ?
Its a second mortgage that allows you to borrow up to 100% value of your home. It’s generally tax deductible up to 100% of the value of your home. Loan terms can be as long as 30 years due in 15 or simply 15 years amortized.
Qualifications for 100 % home equity loans
- FICO based program with minimum of 700 middle score required.
- Ownership in the property 12 months to get a new appraised value.
- No Bankruptcies and foreclosures in the last 3 years.
- All incomes needs to be documented with tax returns and or other means
Why should I apply for a 100 % Second Loan?
- To Consolidate debts and pay off credit cards, medical bills, second loans,and auto loans.
- Lower your payments by hundreds of dollars each month, and make only one easy monthly payment.
- You can use funds to make home improvements, pay college tuition etc.
- These are mortgages and interest can be tax deductions ( please consult your CPA)
What is the criteria for 100 % LTV Second Mortgage ?
- All loans are now FICO based program with 700 middle FICO scores
- Few stated income loans which need 720 and higher FICO scores.
- There may be some cash out restrictions or minimal cash out given to borrowers.
- The amount of loan can go up to $100,000.
- Most of these programs are for For A- paper borrowers
- Bankruptcy 3 years discharged.
- Appraisal required for amounts above $35,000
- Must have resided in the property for six months seasoning to get new appraised value
These loans are now all FICO driven with certain criteria since 2008 mortgage crisis. There are fewer lenders providing these loans. The borrower needs to qualify with documented incomes in the form of tax returns and other means. Because the property values have fallen so much there may or may not be enough equity left in the property to place a 100 ltv Home equity loans. A new appraisal is needed to reflect the values in the area and is basically the driving element in these loans. If there is sufficient equity in the property than this type of loans is possible with proper documentation.