A 100% home equity loan is a loan against the value of your house. Or rather against the the total value of equity you own in your house. During the recent credit boom, these loans were freely available to almost anybody with a pulse. No income necessary, the pulse was good enough. It didn’t even need to be a strong one.
100% home equity loans are also, not to put too fine a point on it – a thing of the past. That is not to say there may not come a time where the governments have printed enough money that they once again reappear, but I very much doubt it. The chances of you being able to refinance with poor credit are slim to none at the moment.
The simple fact of the matter is, there is no such thing and any companies offering such a loan are to be avoided. The only possible way I can see a loan of this type being offered is if it is offered against their valuation of your home. And you are going to discover that their valuation is somewhat lower than either yours or the current market valuation.
Most of the information on the internet is out of date regarding these loans. Even a so-called “respected,” financial institution – Wells Fargo - has misleading and out of date information on their website. They are apparently still offering 125 percent home equity loans, and have a list of the advantages of taking out a 125 percent home equity loan.
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