If your primary concern is how to get a home equity loan with low income, or how to get a HELOC with no income, you have come to the right place. Home equity lenders primary focus is your home’s equity, a leverage which allows you to get a home equity loan even without a job. Many times, starting a new business, newly received citizenship or temporary job loss can leave home owners without conventional income to qualify under. With home equity lenders this doesn’t matter as much. We can explore a few options that assist no income home equity loan approval.
Types of No Income Home Equity Loans
Stated Income Home Equity Loans
One of the situations we help our clients solve often, revolves around how to get a home equity loan with low income. The most common home equity loan is one where a homeowner is self employed but claims very little income. We have many options both at a bank & through our private mortgage lenders.
Pre-Paid Home Equity Loan
If you are out of work or started a job with limited income and require funds to bridge yourself until income starts flowing in, we can provide pre-paid mortgage options. This is usually using a 2nd mortgage. If you currently have a 1st mortgage at a great interest rate, we can offer a second mortgage where you obtain the money you require plus an additional lump sum to prepay your mortgage, so you can work on the things that are important to making you successful.
Home Equity Loan with Guarantor
This option may work both at a conventional (bank) lending & home equity lending. For this purpose, I will speak only to the home equity loan aspect.
Many times, I have applications where a homeowner’s wish is to find out how to get a HELOC with no income or very little income. This can be due to employment, marital reasons or any other reason. These homeowners sometimes have a spouse or common-law spouse or any other variation of relationship. In this situation you can have the homeowner that makes very little but the “partner” makes very good income. They may want to be associated at this time with the title of the home or may not want to be associated with the title of the home. The consigner may have good credit or bad credit. It doesn’t really matter the primary focus is showing lenders that there is a good likelihood that this guarantor will assist with the payments.
A reverse mortgage is a type of mortgage offered by Home Equity Bank and Equitable Bank. It essentially allows homeowners 55 years or older to borrow money using their home equity without having to make a payment. Your age, income & credit is not an issue.
Balloon mortgages can work in a variety of ways. It allows a homeowner to make a small monthly payment but, in some cases, no monthly payment of interest or principle for a fixed term. This term is usually one to two years. At the end of the term you would have to pay the balloon interest owed or refinance again to include the balloon interest owed. This is primarily offered only if you have substantial home equity. The cons are obvious if your employment situation does not improve in a short period of time you will erode the equity saved up in your home and incur a higher cost of borrowing for this type of product.
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As you can see, your home is the main answer to any concern regarding how to get a HELOC with no income. If you wish to find out more on how to get a home equity loan with low income, contact us today and we’ll be more than happy to assess your current situation and provide sound advice.