If you need financing to make repairs or upgrades to your home or to use on other expenses, one flexible option worth considering is a home equity loan.
With this lending product, you can get the funding you need in a form which works for you.
A home equity loan is classified as a second mortgage. When you take out a home equity loan, you are borrowing against your home equity, which acts as collateral.
Home equity loans coming two varieties.
When you opt for this type of home equity loan, you receive the full amount that you are borrowing all at once. The loan is due back over the term you agree on. Every month, you make a payment in a fixed amount.
This option works much like any other line of credit. Based on your qualifications, you will be approved up to a certain limit. You get to choose how much to borrow, and you only pay interest on that.
Each type of home equity loan has advantages and disadvantages. You can learn more about these during your consultation so that you can choose the type of home equity loan which is right for you.
Here are a few of the reasons why first time and repeat homebuyers choose FHA loans:
You have control over how you use the funds you receive. Many borrowers use home equity loans to finance upgrades or repairs to their homes. You can use a home equity loan for anything you want, however, even if it has nothing to do with your home.
Home equity loans are flexible, and you get to pick how you want your funds disbursed.
Interest rates on home equity loans tend to be affordable, especially in comparison to credit card interest rates.
If you have built up substantial equity, you may be able to qualify to borrow a hefty sum.
Note that the closing costs of a home equity loan to me to be accounted for. You will need to figure out whether you can afford them, and whether the benefits of the loan outweigh its costs.
To be approved for a home equity loan, you will need to meet these requirements:
Your credit score should be around 620 at a minimum. The higher your score is, the more affordable your loan will be.
Your debt-to-income ratio is expected to be 43% at the maximum in most cases, though there may be some flexibility. The lower your debt-to-income ratio is, the more bargaining power you will have.
Lenders will consider your employment history.
How much equity you own your home is another major factor for approval. At a minimum, you should own 15-20% equity. The more equity you have, the more money you can be approved to borrow.
Ready to get the financing you need through an affordable and flexible home equity loan? To apply today, please call (614) 505-0620 to schedule your consultation. While our main focus is home equity loans in Ohio, we also serve customers in California and Florida.
Liberty Capital Services LLC is located on 438 E Wilson Bridge Rd #106, Columbus. From John Glenn Columbus International Airport (CMH) head south on Stelzer Rd and use the right lane to turn right onto International Gateway. Then keep right to stay on International Gateway and merge onto I-670 E. Next, continue onto US-62 E and use the left 2 lanes to merge onto I-270 N toward Cleveland. After that take exit 27 toward Cleveland Ave and use the right 2 lanes to turn right onto Cleveland Ave. At this point use the left 2 lanes to turn left at the 1st cross street onto Schrock Rd and continue straight to stay on Schrock Rd. Finally, turn right onto Huntley Rd and turn right onto Worthington Galena Rd. Turn left and Liberty Capital Services LLC will be on your right.
We are open Monday - Friday 9am - 6pm.
Liberty Capital Services LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.