If the loan is more than $25,000, you can borrow up to 80% of the value of your home minus any liens against the property. If the loan is less than $25,000, you can borrow up to 100% of the value of your home.
Example:
| Loan More Than $25,000 | Loan Less Than $25,000 | |
| Property value | $100,000 | $100,000 |
| Multiplied by | 80% | 100% |
| Equals | $80,000 | $100,000 |
| Minus Current mortgage balance | $60,000 | $85,000 |
| Lendable equity equals | $20,000 | $15,000 |
For what purposes I can use the the equity?
You can use your equity for almost anything, be it then for repayment of debt.
How is the money paid out?
The funds are disbursed in draw checks made payable to the borrower and the contractor. We must have 24 hours notice and a written draw authorization signed by the borrower and the contractor.
What is the interest rate?
The interest rate entirely depends on the term of the loan and your credit history.
How much are closing costs?
Closing costs are very reasonable and vary according to the Loan amount.
My tax appraisal is lower than the worth of my house. Which value will you use?
If the loan amount is under $50,000 and the tax appraisal gives us enough value then rest assured. It is all that we need. However, if the tax appraisal does not show enough value for you to borrow the amount you need, you can obtain a letter from a real estate broker telling us the current market value.
How do I apply?
You can apply for pre-approval by phone during normal business hours (8 AM-5 PM Monday-Friday). Upon approval, we will mail you the full application and a list of the documents that you will need to provide. You can alternatively pick up an application from any branch, or we will be happy to mail one to you.
