High Loan to Value Home Loans


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Looking for a high loan to value home equity loan? Some credit unions and banks may offer relatively low rates on 100% home equity loans or lines. When I say relatively low home equity rates, that takes into consideration the limited availability of loans with no home equity required.

Here is a list of lending sources that may provide 100% home equity loans or credit lines:

Mission Federal Credit Union, CA Fidelity Bank, MA
OnPoint Community CU, OR Members 1st Credit Union, PA
Think Mutual Bank, MN
Star Credit Union, CA
IQ Credit Union, WA
Dollar Bank, OH
America First Credit Union, UT
Community America CU, MO

In an effort to slow the trend of mortgage defaults and foreclosures, the federal government enacted the Home Affordable Refinance Act, which is designed to provide 125% home loans to borrowers refinancing with a home loan backed by Fannie Mae or Freddie Mac.

Refinancing under the 125% home loan program provides an opportunity for homeowners with negative equity to reduce their mortgage rate with a home loan up to 125% loan to value. The catch is that the 125% loan qualifying guidelines are strict and good credit is required.

Homeowners with no home equity used to have the option of getting a 125% home loan using a second mortgage or home equity loan, but now 100% home equity loans are available through a limited number of lenders. FHA loans offer one of the best cash out refinance home loans.

High loan to value loans have an inherent risk involved, meaning that if you decide to sell your home, there would be no equity to cover any closing costs or real estate commission, and there may be an amount due for the balance of the loan.