When a loan is called a homeowner loan what this means that only those who actually own the home in which they live can apply.

Homeowner loans are also often called secured loans, meaning that no one can obtain this kind of loan without putting up some form of security.

In the case of a personal secured loan the asset is the equity available in the actual 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.

There is a new secured loan lender entering the market at any time now although everything is very secretive at present who is to arrange secured loans at 90% LTV which will help secured loan brokers survive a little longer.

The last two years have been difficult ones for secured loan brokers whose business is more than 80% down on pre recession figures, and homeowner loan lenders have mainly closed their doors entirely.

In those long gone golden days for the homeowner loan 125% equity plans proved a common product.

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.

The secured homeowner loan sector is a poor shadow of the homeowner loan of 2006 when the sector was vibrant unlike now,and it has been sad to see the fall of so many secured loan lenders and brokers.

Now that the recession is over it can only be hoped that the homeowner loan sector will resurrect slowly but surely.

Learn more about homeowner loans. Stop by Champion Finance’s site where you can find out all about the best homeowner loans for you.