Home equity loans are also called home equity loans or home equity loans. tzedakahhouse.org is specialized in opening home equity loans through private lenders.
What a home equity loan looks like
Unlike personal loans or lines of credit, home equity loans are secured by property owned by the applicant .
In general, the property must be free of debt or if it has debts it must be for a very small amount.
Banks rarely open lines of financing through home equity loans. In general, they prefer personal loans and lines of credit, and at the mortgage level they are more in favor of mortgage loans for the purchase of a home (mortgages).
Advantages of Home Equity Loans
The advantages of mortgage loans over other financing methods are several. However, in general, the following advantages can be defined:
- With a home equity loan the amount of money is subject to the value of the home itself. If we have a property with a high value we can access a proportionally higher loan.
- Mortgage loans offer much more flexible terms and repayment terms compared to personal loans, express loans, and lines of credit. The reason is that real estate in general is real estate that rarely loses value and therefore that helps the lender feel more secure to extend the operation and provide more payment facilities.
- The interest rate on home equity loans is much lower compared to personal loans and lines of credit. Again, the fact that the operation is guaranteed by a property helps reduce the APR of the operation.
- Loans with real estate guarantee are clearly regulated by law 5/2019 (you can consult our study protocol and loan signature at this link) and in general the client must assume less costs and is not obliged to contract derivative products (only the home insurance ) to access this type of financing.
How to use a home equity loan
In general, clients who turn to private financing to obtain a mortgage-type loan are clients or companies that cannot go to a bank to obtain financing.
It may be that they are registered as delinquent in Rai or Credit Checker , that their CIRBE profile reveals that they are already repaying other loans, or simply that they do not meet the conditions required by the bank to be able to open a financing channel (they cannot demonstrate a source of income, your past credit history is not positive…).
Therefore, most clients who apply for a home equity loan use it to reunify debts , clear their delinquency history and thus be able to access classic financing again.
Why turn to a home equity loan
Applying for a home equity loan through private lenders is useful if we find ourselves in any of the following situations.
Acceptance of inheritances
In order to accept an inheritance, it is necessary to advance the money for all taxes and fees that derive from the same inheritance. In the case of inheriting real estate, it will also be necessary to pay the notarial and property registration expenses before being able to pass the ownership of the property to another person. In the case of not having the money, we can go to private lenders to apply for a loan to accept the inheritance.
In the case of being listed as delinquent in Credit Checker or Rai, we will not be able to access financing through a bank. The only way out will be financing through private lenders, with whom we can pay off all the debts we have and thus have to return a single loan instead of several at the same time.
Foreclosures and auctions cancellation
If we are in the middle of a seizure and auction process of assets due to some debt but we still have ownership of the property, we can access a mortgage loan to almost immediately cancel a seizure and auction process .
How to apply for a home equity loan
tzedakahhouse.org carries out the bulk of its operations electronically , which means that you can request your loan by contacting us through our application page . You do not have to go to any office in person. After filling in and submitting the form, one of our agents will contact you within a period of less than 24 hours, to ensure that you meet the access requirements, and quickly determine if the loan is viable.
If the agent determines that the operation can be carried out, then we request additional documentation, such as the applicant's identity card (s), proof of income and the details and characteristics of the home that is to be used as a guarantee of the operation.
All our loans are signed before a notary and the communication between the client's notary and ours is also carried out electronically, which means that no travel is necessary to sign the loan deeds. The whole process is explained in our post on loan study and signing .
Contact us now
If you need a mortgage loan or financing urgently, contact us and we will respond to your request in less than 24 hours.