Real Estate Tips

Tenants cannot apply for secured loans which are also known as homeowner loans.

Homeowners are the only people who are eligible for these homeowner loans as they require to be secured against an asset which in this case is a property. What equity is is the differerence between what a house is worth and the mortgage secured on it. To give an example of what equity is that if a property is worth 290,000, and the mortgage is 100,00, the equity is 190,000.

Before the credit crunch secured homeowner loan lenders granted homeowner loans up to 90% LTV , 95% LTV and 100% LTV, and so based on the previous example loans of up to 100,000 were available but also depended on an applicant’s income and status.

There were a few secured homeowner loan lenders willing to advance secured loans of up to 125% LTV, and it was only homeowners with excellent credit ratings who were considerd for these homeonwer loans. The maximum loan that was granted with most homeowner loan lenders was between 50,000 to 60,000 on this plan.

There are no longer such slack loan to values, and the maximum is 80% for employed prospective secured homeowner loan applicants, and reduced to 70% for self employed people.

Secured homeowner loans used to be up to a maximum loan value of 250,000. With others the maximum available homeowner loan was 100,000. Secured loans are available now of up to 50,000 with some homeowner loan lenders, and some are prepared to lend up to 100,000.

Homeowner loans can be used for almost any purpose such as to buy a car, motorhome, boat etc.In fact homeowner loans are a very good way to fund such a purchase as these loans enable you to buy a vehicle from a private individual or at an auction, and this can save you a lot of money. If you want to buy a car for example from a dealership and arrange a loan from the dealer to buy a car you will pay more for the vehicle than you would if you bought it in a private sale. Also if you buy from a dealership you will require a substantial deposit of up to 30%, and if you do not have a car to trade in 30% can be a fair amount of money to have to hand. A secured homeowner loan will fund the purchase without the need for a deposit.

A homeowner loan is an excellent way to arrange debt consolidation which combines all your outgoings on credit cards, personal loans, etc. saving you a fortune and making your financial life easier to manage.

If a homeowner has always had a dream of owning a second home at home or away, this dream can become a reality with a secured loan which can fund 100% of the second home purchase.

This is really only the tip of the mountain regarding secured homeowner loans, and more information is readily available from secured loan brokers.