Do I have to own my home to be eligible for a Home Equity Line or Home Equity Loan?

Yes, a Home Equity Line or Loan is based on the equity available on your home.  You would take the equity thats available after subtracting what you owe on your mortgage (and any other outstanding liens) from your home’s current market value. If you do not own a home and need financing, look into a personal loan or a line of credit that does not rely on home equity.

Example Purposes: Let’s assume the lender allows a maximum loan amount of 89% of your home’s appraisal value and your home appraises at $250,000, if you owe $150,000 on your current mortgage balance you would qualify for a credit line up to $72,500. (250,000 X 89%=222,500-$150,000=$72,500).