Frequently Asked Insta-Equity Loan Questions
What is Insta-Equity?
A home equity loan typically issued as a 2nd (or 3rd) lien on your Florida property. Although it can be used as a 1st, if your property is currently free and clear. It’s super fast, cheaper, and way less annoying to get than a typical mortgage. You can check out the process in more detail here.
Can it be used for any type property?
It can be used on most “one-unit” properties, meaning a single family residence, condominium, or townhome. It does not need to be your primary residence, as you can also access equity with your rental and investment properties.
If you have a more complex property type, like multi-family, mixed-use, or commercial, check here for additional options.
Are the Insta-Equity rates good?
Rates and terms are subject to each individual’s unique qualifying parameters (meaning your credit, income, and property equity overall), and offered rates fluctuate with the market.
In general though, rates offered start at about a 1%-2% premium to current conforming primary residence 1st lien terms. They go upwards depending on additional risk factors about your particular scenario (one of our loan officers can explain more).
How much can I get?
Depending on the value of your property, you can borrow as little as $15,000 or as much as $400,000. If you need larger cash out amounts don’t worry, we can do that too, but just under different loan programs.
How long is the loan for?
Like all aspects of the loan there’s a lot of flexibility. You will most likely be offered multiple options. Typically, you can choose a loan term anywhere from 5 to 30 years, depending on how large or small you want your payment.
How hard is it to get approved?
There are several variables and everyone’s situation is unique, but for general guidance we look to have credit scores at 620 or above, and your overall debt-to-income ratios below 50%. Non-owner occupied investment properties may require higher scores.
And obviously, the higher your credit score, the better your income to debt ratio, and the more untapped equity you have, the more favorable terms you will be offered. If you have credit or income challenges though, don’t worry, as we may other options for you.
And you really don’t need income documentation? How does that work?
After PreQualification you will be sent the secure application link (check out the process in more detail here). You will then be prompted as needed by the artificial intelligence underwriting program to provide necessary employment, tax, or banking account information online for the system to verify your stated income levels are roughly accurate.
Keep in mind, there are options for self-employed and even retired individuals to be approved through linking online asset and bank accounts for verification rather than tax returns. You’ll have options to choose which way you wish to verify monthly income, so feel free to speak with your loan officer about which choice might work best for you.
But no appraisal, application, or credit check fees either?
There will be a “soft” credit check you will authorize at the PreQualification stage. Soft credit checks cost you no money, and do not negatively impact your credit score. There will only be a hard credit check at the end of the process, after you know you have been approved and like the terms, prior to funding.
And yes, that’s correct, there’s no upfront or application fees of any kind, and no appraisal necessary. Just like with income, your home’s current value is instantly confirmed online by the artificial intelligence underwriting program during the application process. You only pay anything if you are approved and decide you want the loan, and then you can pay out of the proceeds issued to you from the loan. You’ll get a firm estimate of fees with your approval.
You mean I don’t need to pay anything out of pocket?
Absolutely. There’s no cash needed for you to close. We give you money, and simply deduct any costs out of those proceeds.
So how long does the process typically take?
Check out the process in more detail here, but largely it’s up to you based on how quickly you complete each step. As each step only takes 10-15 mins on average, it’s very possible to get approved and offered your loan terms in the same day you begin the process. Once you’ve selected your loan terms, you can then move through the funding stage in as quick as 5 days, if you want.
And what happens if I need assistance or have questions?
Upon completing the quick PreQualification form here, you’ll be assigned an individual Groves Capital loan officer who will be happy to answer any of your questions and provide as much or as little assistance as you need completing your application.
Of course, if you have questions now, feel free to contact us anytime.
