Here is the most impressing info on mortgage loans first time home buyers programs

125% Home Equity: No Equity Second Mortgage Loans for First Time Home Buyers

A 125% home equity loan (also known as no equity loans, 125 home equity loans and 125 loans) is a second mortgage that requires no equity but the loan allows you to borrow up to 125% more than the current combined loan to value (CLTV) ratio of your home. The CLTV is the proportion of more than one loan secured by your home in relation to its value. This is different than loan to value (LTV), which only involves the proportion of a single loan in relation to its value.

Wikipedia provides these examples to help people understand the difference between LTV and CLTV:

Loan To Value:
Property valued at $200,000.00
1st mortgage = $180,000.00
LTV = 90%

Combined Loan To Value:
Property valued at $200,000.00
1st mortgage = $180,000.00
2nd mortgage = $45,000.00
$225,000 Total mortgage balance
CLTV = 112.5%

125% loans are generally fixed interest rate installment loans, and they are particularly popular among first time home buyers who don't yet have equity in their homes for debt consolidation, making home improvements, buying furniture, landscaping, consolidation of auto loans, personal loans and other high-interest loans, paying medical expenses and college tuition. 125 loans may also be used for mortgage refinancing of a current second mortgage.

Even with rising interest rates, a 125% loan offers borrowers lower rates than credit cards and personal loans, and it may also provide substantial tax benefits. When used wisely, 125 home equity loans can be a relatively low-cost way to borrow money for big expenses and debt consolidation.

125% home equity loans are for those who plan to stay in their home until their property value increases significantly because the home cannot be sold unless the home equity loan is paid off in addition to the first mortgage. Also, because lenders face a higher risk of default due to there being no equity in the home, the interest rates are higher than those of a conventional home equity loan.

125% home equity loans typically require that the borrower has good credit. However, even if your credit is less than perfect, you may still be able to qualify for a 125% home equity loan. If not, you may want to consider mortgage refinancing or a standard second mortgage loan once your FICO credit scores improve.

Maria Ny, a free-lance writer from California, is highly respected for her published articles that covered a broad range of subjects ranging from Home Equity, Debt Consolidation, Bankruptcy Reform, Credit Repair to Real estate Financing. Check out her helpful articles online at Second Mortgage & Home Equity Loans Nationwide.

You can learn more about debt consolidation and home improvement financing for first time homebuyers and get specific loan program parameters. Get a free loan quote for a 125% Second Mortgage that requires no equity. We recommend that you get more details about the guidelines for Fixed Rate No Equity Home Loans because it could help lower your monthly payments by lowering the adjustable interest rates on credit cards.

More Useful Resource and Updates on mortgage loans first time home buyers programs

• Commonwealth cuts home loan rates (Daily Telegraph)
  AUSTRALIA'S biggest mortgage lender Commonwealth Bank has reduced its standard variable home loan rate by 80 basis points to 8.53 per cent, passing on most of the Reserve Bank's cut in the cash rate.



• Banks slash home loan rate (Perth Now)
  THE big four banks have all reduced their variable home loan rate by 80 basis points, passing on most of the Reserve Bank's full percentage point cut.



• TD Canada Trust hikes variable mortgage rates, lines of credit (Canadian Business)
  TORONTO - One of Canada's biggest mortgage lenders, TD Canada Trust, is increasing the interest rate charged for its home equity line of credit and variable-interest mortgages.



• Big interest rate cut tipped (The West Australian)
  Home borrowers are tipped to see the biggest rate cut in seven years on Tuesday as global financial market turmoil puts pressure on bank funding costs.



• TD Canada Trust increases home equity line of credit and variable interest rate mortgage rates (CNW Group via Yahoo! Finance)
  TD Canada Trust has increased its home equity line of credit and variable interest rate mortgage rates, effective October 7, 2008. While TD Canada Trust has endeavored to not pass on the increases in rates to its customers, this change reflects steadily increasing costs of funds in the current economic environment.



• Bank of America creates home retention program for Countrywide customers (Banking Business Review)
  Bank of America has announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial customers across the US.



• Rate cut hits home (The Age)
  The Wright family are among the beneficiaries of the Reserve Bank?s decision to slash interest rates.

• California Housing Finance Agency (CHFA)
  Chartered as the State's mortgage bank to meet the need for decent and affordable housing for very low, low and moderate income individuals and families.



• Mortgage loans - Information for first time buyers
  First time home mortgage loan borrowers can learn about the financing a home. ... different loan programs available, and determines which program best fits his needs. ...



• † First Time Home Buyers Grant Resource
  First Time Home Buyer grant directory to free down payment programs throughout the nation. ... recommend the FHA Home Loan program for first time home buyers. ...



• Absolute Mortgage Corporation
  Includes an online application, FAQs, and information on the lending process.



• Mortgage Loans First Time Home Buyer Florida Refinance: Union National ...
  Welcome first time home buyers looking for that first home loan or refinance. Union ... First Time Buyers, Home Loans, Special Mortgage Programs and Rates ...



• First Time Buyer Mortgages - First Time Home Buyer Loans - First Time ...
  ... which is why we offer first time home buyer programs and guides that can make ... to learn more about each step related to home buying and the mortgage process. ...



• Washington first time home buyers programs - Mortgage broker - home ...
  first time home buyers programs - mortgage broker - home improvement loans. ... First Time Buyer Programs. Lower down payment. Easier to qualify ...