The Future Of Secured Loans / Homeowner loans.
A homeowner loan is as the name suggests a loan for which only homeowners are eligible.
Homeowner loans are sometimes also called secured loans, and the reason for these two names is that only homeowners can apply and also that these homeowner loans are secured.
In the case of a personal secured loan the asset is the equity available in the actual property.
An explanation of the meaning of the word, equity, is that the gap between the property value and the mortgage is the available equity.
On a property worth 300,000 with a mortgage of 210,000 secured on it the equity would be 90,000 but these days the homeowner loan that could be applied for is not 90,000.
The maximum LTV for employed people applying for a secured homeowner loan is 80% and for those who are self employed this is further restricted to only 70% and no one knows when or if underwriting will slacken to anything close to the pre recession level.
A new homeowner loan provider is coming into the market and reportedly granting loans on a secured homeowner basis at up to 90% loan to value.
Since early 2007 the homeowner loan industry has struggled to exist at all with the majority of both homeowner loan lenders and brokers ceasing trading.
In those long gone golden days for the homeowner loan 125% equity plans proved a common product.
Before the credit crunch it was possible for self employed applicants to simply state their net profit on a letter head. and with Future even the employed could declare their own earnings without any back up proof.
Instead of the current tight equity restrictions of the present three years ago an applicant for a homeowner loan could even borrow 25% more than the property was worth and this was called the 125% plan, and was a very popular product.
With the recession now officially over we can only wait with baited breathe to see if the secured loan sector will witness some sort of a recovery.
Homeowner loans are sometimes also called secured loans, and the reason for these two names is that only homeowners can apply and also that these homeowner loans are secured.
In the case of a personal secured loan the asset is the equity available in the actual property.
An explanation of the meaning of the word, equity, is that the gap between the property value and the mortgage is the available equity.
On a property worth 300,000 with a mortgage of 210,000 secured on it the equity would be 90,000 but these days the homeowner loan that could be applied for is not 90,000.
The maximum LTV for employed people applying for a secured homeowner loan is 80% and for those who are self employed this is further restricted to only 70% and no one knows when or if underwriting will slacken to anything close to the pre recession level.
A new homeowner loan provider is coming into the market and reportedly granting loans on a secured homeowner basis at up to 90% loan to value.
Since early 2007 the homeowner loan industry has struggled to exist at all with the majority of both homeowner loan lenders and brokers ceasing trading.
In those long gone golden days for the homeowner loan 125% equity plans proved a common product.
Before the credit crunch it was possible for self employed applicants to simply state their net profit on a letter head. and with Future even the employed could declare their own earnings without any back up proof.
Instead of the current tight equity restrictions of the present three years ago an applicant for a homeowner loan could even borrow 25% more than the property was worth and this was called the 125% plan, and was a very popular product.
With the recession now officially over we can only wait with baited breathe to see if the secured loan sector will witness some sort of a recovery.
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Learn more about homeowner loans. Stop by Champion Finance's site where you can find out all about the best homeowner loans for you.
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