How Much Can I Get: Any lender can offer you a loan upon any terms they choose. Most lenders however love conforming loans. This means the loan you receive satisfies U.S. government guidelines. Gennie Mae or Freddie Mac may buy your conforming loan and resell it in secondary financial markets. This is good. It makes your loan highly marketable. To be a conforming loan, borrows qualify for payments up to:

• 28% of your total (gross) monthly income for a mortgage payment.
• 36% to 41% of your total (gross) monthly income for payments on reoccurring debt, depending on the agency guidelines used (i.e. VA and FHA are 41%).

As a result, the total amount of a conforming loan depends on the maximum payment, determined by current interest rate. When rates are low, as they are now, the total amount of approved loans is more than twice as much as in the past when mortgage rates of 12% or 14% ruled the market.

Non-Conforming Equity Loans: Many lenders also offer loans not intended for resale. They optionally make these loans without using the formula above. Many customers routinely request loans specifically for their special needs, circumstances, or financial abilities. If you need extra cash from a home equity loan, is it for you? You can fudge the formula by paying a higher percentage down, maintaining a low loan ratio, adding extra security, or using one of many creative offers. All full service lenders offer non-conforming loans. The best full service lenders offer non-conforming loans at highly competitive rates, or even lower than the market rate for highly qualified applicants.

Compare several home equity quotes and you will discover how easily most applicants qualify regargless of strict compliance with the conventional formula.