#home-equity

#home-equity

Consumers burdened by high-interest credit card debt or collections often struggle to qualify for mortgages, secure favorable terms and are at higher risk of foreclosure. Here's how debt reduction solutions can help: 1. Expand the qualified buyer pool Programs like structured debt repayment plans can rehabilitate credit profiles, helping near-miss applicants meet underwriting standards. 2. Accelerate the path to homeownership By reducing debt-to-income ratios and improving credit scores, these tools shorten the timeline from financial distress to mortgage readiness.

Nearly one-third of Texas homeowners might face unexpected tax bills when selling, as 32.9% exceed the $250,000 federal capital gains exemption.

In New York, 46.1% of homeowners possess home equity that exceeds IRS capital gains tax exclusions, leading to potentially significant tax liabilities upon sale.

Homeowners in New Jersey face significant tax bills due to home equity exceeding the IRS capital gains exclusion limits. 46.2% exceed $250,000 and 12.7% exceed $500,000.

Over half of Montana homeowners possess home equity exceeding IRS capital gains tax exclusions. With home prices up, middle-class sellers face unexpected tax burdens.

Louisiana homeowners face potential tax bills due to outdated federal caps on home equity, with 9.8% exceeding $250,000 gains subject to taxation.

According to the National Association of REALTORS®, 54.9% of homeowners in Idaho have built up equity exceeding the $250,000 exemption for individual filers.

Toohig highlighted the opportunity for loan officers to originate more HELOCs, despite lower profits compared to first-lien mortgages, as homeowners seek to access their equity.

The company believes its innovative approach delivers breathing room that traditional loans simply can't match, allowing homeowners financial flexibility and stability.

"We're not in a position to say what our long-term relationship will be, but I can say that he remains our spokesperson and a key part of Finance of America's strategy."

"During the first three months of 2025, Chicago led the nation in the number of foreclosure starts with 3,789 cases, signaling increasing financial stress among homeowners."