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Starting Out
by Dian Hemer
Inspectors in the House
by Barry Stone
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No Equity Loans (HELOC & 2nds)
This loan program provides potential tax-deductible financing for debt consolidation, home improvements, and / or cash withdrawal from homes that have little or no equity. The program is frequently referred to as a 125% second program. However, borrowers can finance in some cases up to 135% of the current appraised value to meet their financial goals. This coupled with the ability to lower your expense by converting the debt into a tax-deductible expense clearly outlines the benefits of the loan program.
The No Equity Loan provides financing for 1 to 2 units, owner occupied homes providing the borrowers with a good credit history over the last twelve months. This FICO driven program allows a reasonable debt to income ratio, typically 40%, and secondary financing up to $125,000.
Don't overlook this program. The application process is extremely simple and can offer considerable savings over traditional credit card and line of credit loans that do not qualify for a real estate tax deduction.
We strongly encourage anyone considering applying for this loan program to employ the services of an accountant to determine if this or any other secured home loan will qualify as a tax deduction.
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