Question:

Who can take a 125% CLTV stated income home equity loan?

Answer:

If you have taken care of your credit history, a 125% CLTV stated income home equity loan (HEL) or line of credit (HELOC) may be offered to you. Those types of loans will have prime rates only for customers who have at least 700+ average FICO.

  • The no income verification home equity loans will not require W-2s and tax returns, or pay stubs.
  • If you go for a stated income HELOC with combined LTV over 100% it is likely that you will not be approved if you are behind with negative amortization mortgage monthly payments.
  • Most lenders will offer both fixed and adjustable rate home equity loans - usually fixed rate HELs and adjustable rate HELOCs. However, HELs can be offered with both fixed and floating rates.
  • The standard overall draw/payback period is 10 years draw/10 years payback, but it will vary among lenders.
  • For prime rates on no equity stated income home equity loans, no bankruptcy will be allowed for the last several (at least 2) years.

What are the different reduced doc no equity stable and fixed rate home equity loans?

HELOCs are almost always variable. Stated income home equity loans also tend to be variable and it is most likely that yours will have variable rates, as well.

However, a fixed rate stated income home equity loan with prime rates is usually the best for consumers, if they qualify. Otherwise, if you are not getting low rates there is no point taking a fixed rate reduced doc loan.

If you need a traditional 2nd mortgage, those usually have fixed rates. Also, full documentation loans are most often fixed rate, too. Subprime stated income home equity loans are variable rate in 99% of the cases.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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