Bank never extends 100% market value of collectral as credit to borrower?

Question

bank never extends 100% market value of collectral as credit to borrower?

Answer 1

There's a need for the borrower to have some equity.

Answer 2

Sure they do. I have bought new cars with just a signature. There are also first-time home buyer programs with no down payment required. You just have to have excellent credit.

Answer 3

You need to have a rocking credit history for that.  

Answer 4

These days, it is rare for a bank to loan 100% of the value of the collateral but it can happen occasionally.  Lending restrictions are tightening, however, and such opportunities as now exist will probably disappear soon.