HighTechLending expands EquitySelect eligibility and LTVs

National mortgage lender HighTechLending has rolled out major enhancements to its EquitySelect product line, expanding borrower eligibility, raising maximum loan-to-value ratios and widening access to low-payment qualification options for home equity loans.

The changes, announced Wednesday, are effective immediately through HighTechLending’s wholesale channel. The move comes as homeowners hold near-record levels of tappable home equity but face tighter credit conditions and higher rates that restrict access to standard home equity products.

“By expanding eligibility and increasing borrowing capacity, we’re enabling our partners to help more borrowers access the equity they’ve built while overcoming many of the qualification challenges associated with traditional home equity products,” David Peskin, CEO at HighTechLending, said in a statement.

The 1% qualifying payment plan is now available to homeowners ages 55 and older, while homeowners between 50 and 54 can now qualify using payment plans as low as 3%.

At the same time, maximum LTVs have been increased across all five payment plan options — 1%, 2%, 3%, 4% and 5% of the current annual balance — allowing qualified borrowers to access a larger share of their home equity.

The enhancements apply to both the EquitySelect 1st Position Loan and the EquitySelect 2nd Lien HELOC, with loan amounts available up to $4 million, HighTechLending said.

The company positions the program as a solution for debt consolidation, home improvements, retirement planning, emergency expenses and other consumer cash-flow needs.

EquitySelect debuted in September as a first-lien home equity loan that allows borrowers to set monthly payments as low as 1% of their annualized loan balance, subject to a cap. A second-lien version was launched in January – it does not disturb existing first mortgages, a key consideration for borrowers who locked in ultra-low rates in recent years.

The product is designed to function more like a credit card, with any unpaid interest added to the loan balance and ultimately repaid when the home is sold or through a final balloon payment that will not exceed the property’s value.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.