Nested Loan vs
Personal Loan

What’s the Difference between Personal and Nested Loans?

Best Egg is pleased to offer two choices to help you meet your financial needs.


Personal
Loan

UNSECURED

Nested
Loan

SECURED
SAME DAY OFFERSYESYES
MINIMUM DAYS TO FUNDING1 DAY3 DAYS
ORIGINATION FEEYESYES
FIXED MONTHLY PAYMENTSYESYES
COLLATERAL NEEDEDNONEFIXTURES ATTACHED TO HOME
HOME CO-OWNER CONSENT REQUIREDNOYES
PREPAYMENT PENALTYNONENONE
REPAYMENT
  • Monthly payments
  • Voluntary prepayments
  • Monthly payments
  • Voluntary prepayments
  • On sale of home (required)

How the Nested Secured Loan Works

Complete the application online in about 10 minutes

Receive your funds in your account in as little as 3 days

Best Egg handles paperwork and files a lien on your fixture collateral

Repay through fixed monthly payments or when you sell your home, if sooner

Frequently Asked Questions

What is the difference between Secured and Unsecured personal loans?
Both unsecured personal loans and Nested Loans are offered based on your personal credit history, but Nested Loans also require collateral consisting of the fixtures attached to your house. This collateral means that you will not be able to sell your house unless you have repaid your Nested Loan in full before or at the sale closing.
What is the difference between a Nested Loan and a Home Equity Loan?
Both loans place a lien on all or part of your home, which means that you will have to repay your loan in full when you sell your house (if not already paid in full). Traditional home equity loans may take several weeks and involve multiple in-person appointments. With a Nested Loan, you can file all the paperwork online and receive the money in as little as a few days.
What is collateral and how is it used in a Nested Loan?
Collateral is an asset that a borrower pledges to secure a loan. It can be a physical asset, such as a car or motorcycle. Nested Loans use fixtures – non-structural items that are securely or permanently attached to your house, like an oven, refrigerator, or water heater – as collateral to support your repayment of the loan.
What is a lien?
A lien is a right you grant on something you own to secure an obligation or debt. Public notice of the lien can be given by a lender filing a UCC-1 financing statement describing the collateral subject to the lien.
What is a UCC-1 filing and what does it do?
A UCC-1 filing is a document that gives public notice of a lien on the collateral supporting your Nested Loan. This lien will appear in all title searches of your home. Best Egg will release the lien and the UCC-1 filing when your loan is fully repaid.
How can I have the lien on my home’s fixtures removed?
The only way to get the lien removed is to repay your Nested Loan in full.
Do I need the signature of my home’s co-owner to get a Nested Loan?
At least one co-owner, if any are listed on the deed or title of our house, will be required to provide consent for your Nested Loan, but they will not be considered a borrower and will not be responsible for repayment of your Nested Loan. The co-owners may not be able to sell their interest in the house until the Nested Loan is repaid and the lien is removed.
How do you determine the value of my fixtures?
The Nested Loan is offered based on your personal credit history and whether you are a home owner with equity. The loan offered is not reliant on the value of the fixtures but is, rather, secured with those fixtures.
What happens to my house if I miss a payment on my Nested Loan?
Even if you miss a payment, Best Egg will not repossess any of your property. Best Egg charges a standard $15 late fee for payments arriving more than 3 days late and/or a $15 fee for insufficient funds. This late fee is only charged once per late payment and can be avoided by making all payments on time.
How will this impact my ability to borrow more money against my home?
The UCC-1 filing on the fixtures in your home will be maintained in local property records that a future home lender will be able to see, which could affect their decision to lend more money to you. Your Nested Loan will also appear on your credit report. Once you repay your Nested Loan, we will release the lien on the fixtures in your house. Although your loan history will remain on your credit report, the lien will no longer impair the value of your collateral or your home.
What happens if I want to get new fixtures that I need to get financing to pay for?
Your Nested Loan will appear on your credit report, which may affect the terms of another lender’s offering. You are welcome to make changes to your property as you see fit but upgrading or replacing fixtures does not affect the terms of the Nested Loan, which will still need to be repaid in full on or before closing if you sell your home.
What happens if I want to sell my home before my Nested Loan is fully repaid?
Your home may be more difficult to sell if fixtures within it are secured by a lien, and most purchasers will require that the lien be removed at or before closing that sale. Best Egg will also require you to repay your Nested Loan in full at or before closing. The lien will not be transferable to the purchaser.
What is I don’t have equity in my home?
The Nested Loan is best for homeowners with equity. If you don’t have equity in your home, you can still borrow through an unsecured personal loan.
My home is under contract and I don’t have enough money to repay my Nested Loan. Now what?
Your Nested Loan must be repaid in full at or before final closing of the sale of your property. The selling price of your home does not affect the remaining balance on the loan. Neither the loan nor the lien can be transferred to another owner. If the sale price of your house is insufficient to pay off your mortgage and the Nested Loan, you may be unable to sell your house.
What if I want to refinance my house?
Your mortgage lender may require all liens be removed before refinancing your home. The only way to get the lien removed is to repay your Nested Loan in full.
What happens if my home goes into foreclosure?
If you have a mortgage or a home equity loan on your house and you fall behind in your payments, then your mortgage or home equity lender may start foreclosure proceedings to sell your home. If so, then the UCC-1 filing that Best Egg placed on fixtures in your home will alert the lender that you also have a Nested Loan, and the lender will contact Best Egg. Although Best Egg will not initiate a foreclosure and will not repossess your property, we will participate in the process in order to collect the unpaid balance of your Nested Loan.
What happens if something in my home breaks, is replaced or another lender repossesses it?
The lien from the Nested Loan will stay on your house’s fixtures until the loan is repaid, regardless of the condition of the individual items listed as collateral. Best Egg will never repossess your collateral. You are responsible for repaying your Nested Loan in full no matter what changes are made to your property.

More information about unsecured personal loans can be found in our Resources Section.