Equity is the percentage of the appraised value of your property that has not been used as collateral. Therefore, if you own $100,000 house and has 60% mortgaged, your equity is 40%, which is $40,000.
Equity mortgage is not a “home equity line of credit” nor a “traditional mortgage”. Equity mortgage allows borrower to borrow the equity in the house after years of mortgage payments, and also offers the following advantages a traditional mortgages don’t have.
1. No income verification – salaried and self-employed (need to provide “being in the same industry for 2 years)
2. Single family, duplex, townhouse, rural/acreage properties are eligible
3. Up to 80% with 650 beacon score (65% with 600-649 beacon score)
4. Up to 35 year amortization
5. Weekly, Bi-weekly, Monthly payment options
The borrow only looks at the appraisal and determines the value of the equity. In this case, the income amount of the borrow is nota criteria. For salaried individual, only job letter (employment letter) is required, an for BFS (business for self), only need to proof being in the same industry for 2 years.
Borrowed down payment is not allowed.
Filed under: Equity Lending, FAQ
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