Updated almost 3 years ago on . Most recent reply
100% LTV HELOC Advice
I am shopping for a HELOC. I have found 2 lenders that will give up to 100% LTV. Every other lender is 80-90%. Has anybody been able to get one of these? Is there any more risk with 100% vs 80-90%?
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@Jason May the main risk is it is not a legitimate offer. This makes no sense for lender to take that risk. Be vary wary of sending any money up front other than for an appraisal. I would check to make sure they are a legitimate lender.
The other risk is simply one of leverage. If you are leveraged 100% then what happens if something goes wrong. You have no safety net.
If this is a legitimate offer you are likely paying higher rates and [perhaps other less advantageous terms.