Equity is the percentage of the appraised value of your property that has not been used as collateral. Therefore, if you own $100,000 house and has 60% mortgaged, your equity is 40%, which is $40,000.
Equity mortgage is not a "home equity line of credit" nor a "traditional mortgage". Equity mortgage allows borrower to borrow the equity in the house after years of mortgage payments, and also offers the following advantages a traditional mortgages don't have.
1. No income verification - salaried and self-employed (need to provide "being in the same industry for 2 years)
2. Single family, duplex, townhouse, rural/acreage properties are eligible
3. Up to 80% with 650 beacon score (65% with 600-649 beacon score)
4. Up to 35 year amortization
5. Weekly, Bi-weekly, Monthly payment options
The borrow only looks at the appraisal and determines the value of the equity. In this case, the income of the borrow is not a criteria. For salaried individual, only job letter (employment letter) is required, an for BFS (business for self), only need to proof being in the same industry for 2 years.
Borrowed down payment is not allowed.
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