With the 125% loan, the home
owner is able to borrow more than the actual value of
the home. The actual amount available to be borrowed in
a 125% loan is dependent upon the real estate value of
the home and the amount already owed on the home through
a mortgage or other loan program. The 125% loan is often
used to access cash for large purchases. The 125% loan
may also be used to make home improvements and increase
the real estate value of the home. Because the 125% is a
partially unsecured loan it may have higher rates than
other home mortgage
loans.
Equal Housing
Opportunity (c)
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