Home Equity Loan (HELOAN)
Veritas Funding offers a compelling financial product for homeowners looking to leverage the equity in their homes without the need to refinance their first mortgage. The fixed rate second lien Home Equity Loans (HELOANs) provided by Veritas Funding are designed to meet a variety of financial needs, from home improvements to debt consolidation and even financing college education.
Key Features of Veritas Funding's HELOANs year:
Multiple Loan Term Options: Borrowers can choose from various loan term options, all available at a fixed interest rate. This flexibility allows homeowners to select a repayment plan that best fits their financial situation.
Lump Sum Disbursement: Unlike a home equity line of credit (HELOC), which provides a revolving line of credit, a HELOAN gives borrowers the entire loan amount in a lump sum. This can be particularly advantageous for large, one-time expenses.
Loan Amounts: Veritas Funding offers HELOANs for amounts ranging from $25,000 to $600,000. This wide range ensures that both small and large financial needs can be met.
Combined Loan to Value (CLTV): Borrowers can access up to 90% of the combined loan to value between the first and second liens. This high CLTV ratio allows homeowners to maximize the equity they can tap into.
Property Types: These loans are available for primary residences, second homes, and investment properties, making them versatile for different types of real estate investments.
Unit Allowance: The loans can be used for properties with 1-4 units, providing flexibility for various property types.
Debt-to-Income Ratio (DTI): The maximum allowable DTI for these loans is 50%, ensuring that borrowers maintain a manageable level of debt relative to their income.
Ownership Requirement: The property must be owned by the borrower for at least six months prior to the HELOAN closing. This requirement helps ensure that the borrower has established some equity in the property.
Co-Borrower Restrictions: Non-occupant co-borrowers are not allowed, which means that all borrowers must reside in the property.
Transaction Eligibility: These loans are not eligible for purchase transactions or simultaneous first lien transactions, focusing solely on leveraging existing home equity.
Benefits of Choosing Veritas Funding's HELOANs
Opting for a HELOAN from Veritas Funding can provide several benefits:
Predictable Payments: With a fixed interest rate, borrowers can enjoy predictable monthly payments, making budgeting easier.
Immediate Access to Funds: Receiving the loan amount in a lump sum allows for immediate use of the funds, which can be crucial for time-sensitive projects or expenses.
No Impact on First Mortgage: Since the HELOAN is a second lien, it does not affect the terms of the existing first mortgage, allowing borrowers to keep their current mortgage rate and terms.
Veritas Funding's HELOANs are a robust option for homeowners looking to make the most of their home equity. Whether it's for home improvements, consolidating debt, or funding education, these loans offer a flexible and reliable solution.
For more information on the benefits of a HELOAN vs. a HELOC see this resource article on Veritas Funding’s website.