If you've been thinking about applying for a direct homeowner loan, you might want to take a little bit of time to make sure that you understand exactly how these loans work and to shop around for the best deal in a direct homeowner loan.

What is a direct homeowner loan?

So what is a direct homeowner loan? Basically, a direct homeowner loan is a loan that is made between a lender and a borrower directly (in other words, without a middle-man), using the equity in the borrower's home as collateral for the loan.

A direct homeowner loan can be used for a variety of purposes, from vehicle financing to debt consolidation, and can vary in amount from relatively small to much larger.

The equity that the borrower has is a major determination in the maximum amount of the loan.

What is equity?

Equity is a measure of how much of the borrower's home they actually