Frequently Asked Questions

A home equity line of credit is a form of revolving credit in which your home is used as collateral. Home equity lines of credit feature a variable interest rate and a draw period.

The draw period is the time frame during which you are allowed to use the credit available on your home equity line. When you borrow funds from your line of credit it is referred to as a draw.

Your credit limit (also known as available equity) is determined by taking a percentage of your home's appraised or fair market value (to be determined when your application is received), and subtracting the balances of any outstanding mortgages on the property. If you qualify, the minimum home equity line is $20,000 and home equity fixed loan is $15,000.

You can use a residence that you do not occupy as collateral if the property's total existing mortgages and your requested home equity line add up to no more than 70% of an investment/rental property's appraised value and up to 80% is available for vacation homes.

The minimum initial draw amount on a home equity line of credit is $20,000. The minimum amount for subsequent draws is $500.

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Within six to eight weeks of your loan closing you will receive a package that contains both payment information and checks that will allow you to access your line of credit.

For home equity lines of credit, your minimum payment during the 10-year draw period will be the greater of the following:

• One month's accrued interest, plus any assessed fees (a late fee for example), or,
• $100.00

You will receive a monthly billing on your home equity line of credit as long as there is an outstanding balance.

There is an annual fee of $75 for the home equity line of credit. This fee will be waived for the first year.

None of the products that TheLoanFunders Home Equity currently offers have charges for early closure.

No. If your home is currently for sale TheLoanFunders cannot provide you with a loan on that home. If your home has recently been for sale it must be off the market for 90 days before we can provide you with a home equity loan on that property.

Once you close your Home Equity Loan / Line of Credit, the funds are yours to use as you wish.

In most cases, home equity loans / lines of credit do not require a full appraisal. In fact for most loan amounts of $250,000 or less the appraisal process can be completed electronically.

While both are considered second mortgages, with a home equity loan all funds will be paid at closing. A home equity line of credit provides you with a credit line that you can borrow against at any time within a set time limit and up to a maximum amount.

In order to determine your tax benefits it is best to consult your tax advisor or attorney for specific tax guidelines. However, in most cases the interest on your home equity line of credit is deductible as long as your home equity debt is $100,000 or less and the total debt on your home is less than or equal to your home's appraised value. Any mortgage debt above your home's appraised value may not be tax deductible.

Your maximum loan / line amount is determined by a number of factors. In most cases your total mortgages, including your requested loan / line amount, can add up to 80% and in many cases even 125% of your home's value.

The rescission period is a waiting period of three days (excluding Sundays and legal holidays), between signing your loan papers and closing your loan. This period allows you to reconsider, and perhaps void the transaction, and is required by federal law for all owner-occupied refinances.

The amount that you can borrow varies based on a variety of factors. However, most borrowers can borrow at least 80% of their home's value (when all mortgages are totaled) and some can borrow up to 125%.

The approval time varies from loan to loan. Many borrowers get an instant approval as soon as they apply online. However, in some cases we will need additional information before we can arrive at a credit decision.

The time needed to close your loan depends on a variety of factors, including the time needed to obtain required documentation and when you can sign your loan documents. Many loans close within 10 days of application and most loans close within 7 days of receiving a final loan approval.

No. TheLoanFunders does not charge a fee to apply for a purchase or refinance loan.

You are able to refinance the existing payoff balance from your current lender. You will need to contact your current lender to obtain payoff balance information and an address to send the payoff.

Once you submit your application it is encrypted for transmission and then stored with industry-leading security on our servers. Netscape Navigator, Microsoft Internet Explorer and other web browsers are compatible with this form of encryption. All the application pages will display the "secure icon" in your browser indicating that the information you enter on these pages will be transmitted securely. Finally, TheLoanFunders maintains a rigorous Privacy Policy and contracts for regular, independent audits of our processes and systems to ensure that we adhere to these standards.

No, there are no "junk" fees. TheLoanFunders does not charge any origination fees, application fees, administration fees, processing fees, underwriting fees or funding fees. Your loan may still have "third-party" fees. Among these are fees for appraisal, courier, notary, title insurance, and recording. Because other parties charge these fees, TheLoanFunders has no control over them. Please note that on your interest rate, your loan may include discount points. Loan discount points are used to buy down the interest rate and are different from lender fees in that borrowers decide what rate and point combinations they want.

Yes. There is a nominal charge of $15 for this service. Please select this option when you apply.

TheLoanFunders and its lending partners offer a range of products to meet the needs of customers with strong credit histories as well as those who have experienced credit problems. If you do not have perfect credit we will, at your request, attempt to find a lender who can help you. Simply select "Yes" on the application.

You can track the status of your application at your convenience at our website by signing in using your email address and your password.

If you applied during our business hours of M-F 10:00 a.m. to 11:00 p.m. or Saturday 10:00 a.m. to 7:00 p.m. (all times Eastern), you should receive a loan decision within 15 minutes after you submitted your application.

In order for a consumer to apply for a mortgage on a foreign property, you must apply through a bank, broker or financial institution offering mortgages in that particular country. You cannot apply for a foreign mortgage (non-U.S.) at the TheLoanFunders website in the United States.

No. At this time U.S. lenders do not accept foreign currency as payment for your mortgage (on a U.S. property). If you only have foreign currency and need to use it to make a mortgage payment (on a U.S. property), go to your local bank and convert your foreign currency to U.S. dollars to pay your mortgage.

Currently, mortgage applications differ from country to country so you would need to re-apply. When you do apply for a foreign mortgage, it will be helpful to have a copy of your recent mortgage application available as a reference. To see a typical list of documentation requested on a U.S. mortgage application, click here.