Home Equity Loans in Nevada

Home equity loans are a type of secured loan where you use the equity in your home as collateral, making it easier to get approved. You can use the money from a home equity loan for anything you want — from home renovations to medical expenses and everything in between.

Since home equity loan rates in Nevada are usually lower than credit card and personal loan interest rates, they can serve as a better financial tool for homeowners. In fact, Nevada home equity loans can provide a convenient solution for those who want to consolidate their high interest debt under a single payment. 

With a home equity loan, you can borrow up to a certain percentage of your home’s equity. Most lenders allow you to borrow between 80 and 95 percent of your home’s equity. You’ll either receive this money in a single payment or as a line of credit, depending on which type of home equity loan you choose. If you sell your home before you’re finished paying off your loan, some of the proceeds will be used to pay off the remainder of your loan.

Griffin Funding offers several types of home equity loans. We typically require tax returns when you’re applying for a home equity loan in Nevada, but you can also apply for a bank statement HELOAN if you’re self-employed.

There are two primary types of home equity loans you can choose from. While there’s no right or wrong answer either way, it’s important to understand how a HELOAN works and how it’s different from a HELOC.

A traditional home equity loan, or HELOAN, is essentially like any other loan you might apply for. If you’re approved, you’ll receive your money in a single payment with a fixed interest rate and a set loan term. You’ll make consistent monthly payments throughout your loan period until the loan is repaid. HELOANs typically have a loan period ranging from five to 40 years, making them a good long-term option.

Alternatively, a home equity line of credit works like a credit card, allowing you to spend up to the limit set by your lender. HELOC rates in Nevada are variable, which means your monthly payment will also vary. You can spend money during the draw period, but you must stop drawing and start making payments when the draw period is over.

There are several differences between HELOCs and HELOANs, but they can both be good options. Take some time to assess your needs and compare your options before you apply for a loan.

Home equity loans are great as long as you’re responsible about how much you borrow, how you spend your money, and how quickly you repay your loan. Here are some of the pros and cons you should be aware of before applying for a home equity loan in Nevada:

Pros of home equity loans include:

• You can quickly access large sums of cash
• Griffin Funding offers competitive interest rates on home equity loans
• You have the flexibility to spend your money on anything you want 
• You can apply for a home equity loan while keeping your low mortgage interest rate
• Interest on your home equity loan can potentially be written off on your taxes
• You can tap into home equity on your primary residence, vacation home, or investment properties 

Some of the cons of home equity loans are:

• Spending more than you planned can be dangerous with a HELOC
• You can lose your home if you can’t pay your loan back on time
• A home equity loan can add to your total debt burden 

When taking out a home equity loan in Nevada, you should have a handle on your finances and a plan in place for how you’ll repay the loan. Before applying for a home equity loan, explore all your options and make sure a home equity loan is the right solution.

Equity is the biggest concern when you’re applying for a home equity loan, but there are other factors that come into play. Before you apply for a loan, make sure you meet the Nevada home equity loan requirements most lenders use:

1. You need to have a certain amount of equity in your home before you get approved for a loan. Most lenders require you to have at least 20 percent equity, although some offer loans with 15 percent. You will need to retain at least five to 15% of your home equity after receiving cash from a HELOAN.
2. Your credit score and debt-to-income ratio need to show that you’re responsible and in good financial standing. A high credit score and low DTI can lead to better rates and terms. To qualify with Griffin Funding, you’ll need a minimum of a 640 FICO score and a DTI ratio of no more than 45%. 
3. Lenders also look at your income and mortgage payment history. If you make enough money to repay your loan and you have a proven track record of on-time mortgage payments, you’re in good shape.

Getting approved for a home equity loan is fairly simple once you understand the requirements. If you’re having trouble getting approved, you can use the Griffin Gold app to monitor your credit and manage your finances. The Griffin Gold app also allows you to compare different loan options and get personalized support from our team of mortgage professionals.

Home loans can be very useful when you use them responsibly. Favorable loan terms can save you money and make home equity loans easier to pay off than credit cards and personal loans. As long as you have equity in your home, you can use it to access much-needed cash flow.

At Griffin Funding, we’re committed to making it easy to get approved for home equity loans. We also offer bank statement loans for self-employed individuals. If you want to take out a home equity loan or explore HELOC rates in Nevada, you’re in the right place. Apply for a home equity loan with Griffin Funding or contact us to learn more today.