Home Equity Wholesale

Home equity wholesale is a broad term, covering several aspects of home equity mortgage loans. However, normally, home equity wholesale would mean the wholesale amounts offered against the home equity. For example, for persons with very high credit scores of 720 or above, banks and other home loan lenders would be prepared to offer wholesale rates for fixed or variable interest rates loans up to 125% of the value of the home equity. This category of people is known as high LTV borrowers.

For people with credit scores between 600 and 720, home equity wholesale rates would be offered for loans up to 100% on fixed or variable interest rate basis. The interest rates would be higher than that offered to LTV borrowers. This is known as prime lending category. For persons with credit scores below 600, sub-prime home equity wholesale rates are provided but the loan amount would vary between 80% and 95% of the value of the home equity. The interest rates would be much higher than the other two previous categories. Further, majority of bankers and lenders would not consider this category of persons. Separate sub-prime lenders would provide home equity mortgage loans for such people.

Finally, home equity wholesale rates would be given to non-prime lenders also by certain sub-prime lenders. Persons who had declared bankruptcy or those with very bad repayment history would come under this category. The home equity wholesale rates would be very steep for such people and the home equity loan amount would vary between 70% and 80% of the value of the home equity.

As such, home equity wholesale lending depends on the credit score of the borrower and the terms of the home loan and the interest rates would depend purely on the credit history of the person seeking home equity loan. If your credit score is not that good, it would be advisable to make serious efforts to improve your credit rating by prompt repayments of existing loans and then utilize the advantage of home equity wholesale lending.