No equity loans- also referred to as 125 second mortgage loans, are a way in which homeowners may borrow up to 125% of the current appraised value of their home.
No Equity means that the homeowner can borrow money even if he/she has no equity established in the home. There are many vendors that offer a variety of no equity programs – some with little or no seasoning requirements. A no equity loan may allow homeowners to borrow money to make home improvements, consolidate debts, pay off bills, pay for school, or even take a vacation.
Typically there are no requirements or restrictions on the money that is borrowed, but each vendor has their own specifications.