Equity Loan
Creative Bad Credit Financing Method #7
An equity loan is a good source for capital to help a new investor begin,
this easy can be found in the investor's own home or investment property. Many lending institutions make
a home loan secured by the equity in your home or other properties, usually for about 75% of their value. If you look for special offers, you can get as much as 80% to 85%. The interest rate is usually tied to the prime rate: for example, prime rate plus 1% or 2%.
The payoff period, or time in which the investor is required to repay the home loan, is 5 to 15 years, depending upon the lending institution. Most institutions do not charge any points (the percentage of the loan that the borrower must pay to the bank) for making the
home loan. In addition, the origination costs of the loan are very small.
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Specific Situations to
Apply Method #7
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Equity
home loan
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The Property
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The Buyer
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No Cash at All
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Equity in Real or Personal Property
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Dead Equity
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The Seller
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Needs All Cash for Equity
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Equity Loan to Creative Home Finance
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