Equity Mortgage (Equity Lending)
A mortgage where approval is based predominately on the amount of equity in a property, and its marketability.
Traditional income confirmation is usually not required.
Prime lenders also rely on the applicant’s credit history and score. Non-prime lenders don’t care as much about the applicant’s credit history.
Equity lending is more risky. Therefore, loan-to-values rarely exceed 75-80%.