Get The Lowdown On Family Equity Loans
There are many different options when it comes to home loans, so understanding all the different avenues available to you can help to relieve some of the stress generated by the experience.
One option which is becoming more and more popular is the family equity loan.
This type of loan is fantastic for the buyer looking to get out of the renting cycle and make the jump to homeowner.
A family equity loan – also known as a limited guarantor loan – allows a family member or parent to help you buy your home.
This type of loan could offer you a helping hand in getting you up onto that property ladder.
Family equity loans work by allowing a family member to offer up their property as security for a part of your home loan.
However, one of the best aspects about this type of loan is that your family member doesn't actually have to hand over any money.
They get to choose exactly how much of the loan they want to secure – which is usually around 20 per cent of the value.
To get more detailed information about your situation, talk to a Loan Market mortgage broker today.