I am looking into a business loan that would personally guarantee with a home. Here is my question. Do banks typically only allow a borrower the amount of equity that they have in the house? Basically do they want 100% collateral available from the first day you take the loan or do they take any risk? Example, home is appraised at 350k and balance of mortgage is 275k. Would this example only allow the borrower 75k or would the bank consider more? All of this is with the assumption of high personal credit worthiness.
