HighTechLending has enhanced its EquitySelect product line, broadening borrower eligibility and increasing maximum loan-to-value ratios for home equity loans. The changes aim to help more homeowners access their built-up equity amid tighter credit conditions and higher interest rates.
These product enhancements by HighTechLending aim to unlock home equity for a wider range of borrowers, potentially stimulating consumer spending on home improvements, debt consolidation, and retirement planning, while also providing mortgage brokers with more options to serve clients in a challenging credit environment.
National mortgage lender HighTechLending has introduced significant updates to its EquitySelect product line, aiming to broaden borrower eligibility and increase maximum loan-to-value (LTV) ratios. These enhancements apply to both the EquitySelect 1st Position Loan and the EquitySelect 2nd Lien HELOC, with loan amounts available up to $4 million.
The changes, effective immediately through the wholesale channel, come at a time when homeowners possess substantial equity but face restricted access to traditional home equity products due to tighter credit conditions and higher interest rates.
David Peskin, CEO at HighTechLending, stated that the expanded eligibility and borrowing capacity will allow partners to assist more borrowers in accessing their home equity while navigating qualification challenges. Specifically, the 1% qualifying payment plan is now accessible to homeowners aged 55 and older, and those aged 50 to 54 can qualify with payment plans as low as 3%.
Furthermore, maximum LTVs have been raised across all five payment plan options (1%, 2%, 3%, 4%, and 5% of the current annual balance), enabling qualified borrowers to leverage a greater portion of their home equity. The EquitySelect product, initially launched as a first-lien loan in September and later as a second-lien version in January, allows for monthly payments as low as 1% of the annualized loan balance, capped at a certain level. The second-lien version does not affect existing first mortgages, a key feature for borrowers who secured low rates previously. The product is designed to function similarly to a credit card, with unpaid interest added to the balance and repaid upon sale of the home or through a final balloon payment not exceeding the property's value.