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A homeowner loan is as the name suggests a loan for which only homeowners are eligible.

A homeowner loan is as the name suggests a loan for which only homeowners are eligible.

Another common name for a homeowner loan is a secured loan and this therefore suggests that some form of security must be provided by the borrower.

When we are talking about secured what these home loans are secured on is the equity in a property.

Equity is the difference between the value of a home and the balance of the mortgage secured on it.

On a property worth 300,000 with a mortgage of 210,000 secured on it the equity would be 90,000 but these days the homeowner loan that could be applied for is not 90,000.

The maximum LTV for employed people applying for a secured homeowner loan is 80% and for those who are self employed this is further restricted to only 70% and no one knows when or if underwriting will slacken to anything close to the pre recession level.

A new homeowner loan provider is coming into the market and reportedly granting loans on a secured homeowner basis at up to 90% loan to value.

Secured loan brokers have struggled to survive the recession with homeowner loan approvals now under 20% of the level that they were at at the end of 2006, and homeowner loan lenders have almost all gone to the wall.

It is now a very far cry from three years ago when the secured loan industry thrived and large volumes of these loans were paid out every year from the many now mainly defunct secured loan lenders.

With the recession at an end it is to be hoped that the secured homeowner loan will returned to some what of its former glory.

Instead of the current tight equity restrictions of the present three years ago an applicant for a homeowner loan could even borrow 25% more than the property was worth and this was called the 125% plan, and was a very popular product.

Three years ago there was even a homeowner loan in which the homeowner loan could borrow up to 25% more than the house was worth