Do you need to have more than 20% home equity to borrow against for a home equity loan?

A friend just asked me to borrow money to pay her mortgage this month- she plans to take out a home equity loan to pay me back. She has only owned her house for two years, and I assume she would have only put 20% down. Will the bank allow her to borrow against that 20% or would it only be any appreciation in excess.

All loans are negotiable. Some lenders will lend you more than 100% of the value of your property. A lot depends on your other assets, income, debt. etc. You'll probably also find that the interest rate is less favorable.

With all the different finance available, it is easy to borrow up to 120% of the present value of your home. assuming you have a decent credit rating and a stable income as well as work history.

no you dont i just did it and if her house was appraised for say 150,000 and her actual loan amount is say 100,000 she has 50.000 in equity it weird how they do it but i just got a 50.000 equity loan and thats how they said it works

when loaning money, it can and will ruin a friendship.. have your friend sign a I.O.U.. its never a good idea 2 loan money 2 another.. they find it soo hard 2 pay back.. always a chance she can't get a home equity loan..

Do Not do this unless you want to lose a friend.

Help her get 2nd 3rd job to get her money in order, she is looking to be out of the house shortly.

Have her visit DaveRamsey.com to learn before she loses it. You need to visit also.

Sounds like your friend is in dire straights. If she needs to borrow money to pay her mortgage, she really needs to rethink her situation.

Taking out an additonal mortgage is a possibility, even up to 100% or more of the total value of the loan, but if she's taking a new mortgage out to pay you back for the original mortgage she couldn't pay, she has things way backwards.

I do not recommend it, as the new equity line will come with a new required monthly payment that could send her into foreclosure.