US Homeowner Equity Levels at All Time Highs, but Increasingly Difficult to Access
Homeowner’s in the US are enjoying the highest level of home equity in history with over $20 trillion in total equity (as of the second quarter of 2020). From Q2 2019 to Q2 2020, homeowners saw their equity rise by nearly $620 billion, representing an increase of 6.6% year over year and an average household gain of $9,800. One in four US homeowners have mortgage balances that are less than 50% of the estimated home value, and the average US homeowner has close to $120,000 in available equity.
Despite the record equity levels, it is becoming increasingly difficult for homeowners to convert their equity to cash due to unemployment and uncertainty caused by COVID. At a time when homeowners desperately need the equity from their house, banks are eliminating home equity lines of credit and cash-out refinance products. In cases where lenders are still offering cash out solutions, the qualification requirements have become stricter (i.e. higher credit score requirements, lower loan-to-value rations, and less debt-to-income ratios). If a homeowner has been furloughed or is unemployed, there may not be any home equity conventional loan options available.
The good news is that Home Equity Solutions was designed for this exact environment. With record equity levels and tighter lending regulations, HES is perfectly positioned to help homeowners convert their equity to cash. HES does not have credit score, income, or employment requirements in order to qualify. Please contact us today to see how we can help.