Find Home Improvement Loans to 125%

125% home improvement loans are equity loans or HELOCs that allow 1st time homebuyers to get access to cash for financing home remodeling and construction with no equity.

There are still a few nationwide lenders that offers competitive no equity loans to help borrowers finance home improvement projects and real estate construction.

How Much Do You Want to Borrow?


See Lenders for Terms and Conditions

We specialize in low rate home improvement loans from 80% to 125% combined loan to value (cltv). The 125 equity home loan has been put on hold by most lenders.

No Equity Home Construction Financing

One of the most popular equity loan options is the 125% home improvement loans. This loan is for homeowners who want to finance home improvements, but do not have much or any equity in their home.

After their new 125% second mortgage they have exceeded their home equity by as much as 25%. Check with brokers to see if they are still offering 2nd loans beyond 100%.

What is the 203K Home improvement Loan?

FHA offers the 203K loan to qualified borrowers looking to make major home renovations that go above and beyond the value of your home. In most cases, FHA lenders offer this home improvement loan up to 115% loan to value.

This distinctive home remodeling program enables you to buy a home and fund minor or major renovations, all within a single, cost-effective mortgage.

Choosing a home that needs to be fixed up often exposes you to reduced competition from other buyers, providing you with the chance to establish substantial equity in a short timeframe through a sequence of manageable home improvements.

Learn How to Finance Home Improvements with No Equity!

Credit Rating: Good or Excellent
Key Qualifiers: Property Value, Credit Score
Income Documentation: Full Doc or No stated Income

125% Home Improvement Loan Terms

  • 15 Year Fixed Rate
  • 20 Year Fixed Rate
  • 25 Year Fixed Rate

Home Improvement Spending on Remodeling Soars Across the Country

The South Florida Sun-Sentinel reports that Americans spent an estimated $210 billion on residential remodeling last year, an all-time high, according to the National Association of Home Builders.

The NAHB Remodelers Council forecasts a 13.2 percent jump in remodeling spending this year, to a record $238 billion, the largest increase in spending in more than 10 years.

According to Robyn Friedman, “Three things are driving growth in remodeling. Low interest rates encourage homeowners to take out home equity loans or do a cash-out refinance, which provide cheap funds for home repairs or renovations.”

Second, the active 2005 hurricane season forced the need for repairs, particularly in the U.S. Gulf Coast states.” Third, the resurgence in the rental market has encouraged many apartment building owners to update their properties to maximize rental income.

Regionally, more remodeling is done in the South than in other parts of the nation; it accounts for 31% of all spending on remodeling. The highest per-household spending, however, occurs in the Northeast. The NAHB says the residential remodeling market accounts for about 40% of all home construction.