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
RIGHT TO REPOSSESSNONEIf not fully repaid:
  • Failure to meet payment obligations
  • Upon sale of home
  • Personal bankruptcy or insolvency
  • Foreclosure

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 and no prepayment penalties

Frequently Asked Questions

What is the difference between Secured and Unsecured personal loans?
Both unsecured personal loans and Nested Secured Loans are offered based on your personal credit history, but Nested Loans also require collateral consisting of fixtures attached to your home. "Fixtures" do not include your personal effects, or household goods or appliances that are not permanently affixed to your home, or that otherwise are not considered "fixtures” under applicable law. Your "home" is the residence at the address you provided on your Nested Loan application. Best Egg will have a lien on this collateral, which gives Best Egg the right to repossess the collateral if you default on your Nested Loan. This lien also means you may not be able to sell, refinance or obtain new financing on your home unless you have repaid your Nested Loan in full.
What is the difference between a Nested Loan and a Home Equity Loan?
Both types of loans place a lien on all or part of your home, which means that you may have to repay your loan in full if you sell, refinance or obtain new financing on your home. A home equity loan uses your entire home as collateral, while a Nested Loan is only secured by the fixtures in your home, as described above. 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. Nested Loans use fixtures as collateral to support your repayment of the loan. The collateral does not include personal effects, or household goods or appliances that are not permanently affixed to your home, or that otherwise are not considered "fixtures" under applicable law.
What is a lien?
A lien is a right you grant on something you own to secure an obligation or debt. The lien gives a lender the right to take possession of (or "repossess”) and sell the collateral under certain circumstances. Best Egg's lien on fixtures in your home gives Best Egg the right to repossess these fixtures if, while your loan is still outstanding, you fail to meet your payment obligations or you enter into bankruptcy or other insolvency proceedings (and the bankruptcy court permits the repossession). Best Egg also has the right to repossess these fixtures from a future owner of your home if your loan is not fully repaid and you either sell your home or it becomes subject to foreclosure proceedings.
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 title searches of your home and may impact your ability to sell, refinance or obtain new financing on your home or fixtures. 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 your home, will be required to provide consent for your Nested Loan, but they will not be considered borrowers and will not be responsible for repayment of your Nested Loan. The co-owners may not be able to sell their interest in the home, or refinance or obtain new financing on the home, until the Nested Loan is repaid and the lien 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 is secured by fixtures in your home but does not depend on the value of those fixtures.
What happens to my home if I miss a payment on my Nested Loan?
Best Egg charges a standard $15 late fee for payments arriving more than 3 days late and/or a $15 fee if your bank account has insufficient funds to honor your payment. The late fee is only charged once per missed or late payment and can be avoided by making all payments on time. Because the collateral for your Nested Loan is fixtures in your home, and not the home itself, Best Egg cannot foreclose on your home.
Can Best Egg repossess the fixtures in my home that serve as collateral for my Nested Loan?
The lien Best Egg placed on fixtures in your home gives Best Egg the right to repossess these fixtures if you default on your loan, including if you have not timely fulfilled your payment obligations, you enter into personal bankruptcy or other insolvency proceedings (and the bankruptcy court permits), or your home enters into foreclosure proceedings. We may exercise our right to repossess against a future owner of your home if you have sold your home without fully repaying your Nested Loan. Future holders of your Nested Loan will also have the right to repossess fixtures in your home if you default on your loan.
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 home. 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 need to obtain new financing to purchase new fixtures?
Your Nested Loan will appear on your credit report, which may affect the willingness of another lender to offer you a loan and the terms of that loan. You may make changes to your property as you see fit, but upgrading or replacing fixtures does not affect the terms of the Nested Loan. Any new fixtures will be automatically subject to the lien Best Egg filed in connection with your Nested Loan (but not your personal effects, or household goods or appliances that are not permanently affixed to your home or that otherwise are not considered "fixtures" under applicable law). Changes to the fixtures in your home will not change the terms of your Nested Loan, including your payment obligations.
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 potential purchasers may require that the lien be removed at or before closing the sale. Best Egg will not release its lien on your fixtures until you repay your Nested Loan in full. If you sell your home and its fixtures before fully repaying your Nested Loan, then Best Egg may declare your loan in default. This means that Best Egg would have the right to repossess the fixtures from the new owner. In addition, your Nested Loan would become immediately due and payable, and any non-payment or any payments less than the remaining balance will be reported to the consumer credit bureaus and appear on your consumer credit reports.
What if I don’t have equity in my home?
The Nested Secured Loan is only available to homeowners with equity. If you don’t have equity in your home, you may still be eligible for an unsecured Best Egg 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 home. If your home and its fixtures are sold before fully repaying your Nested Loan, including through a foreclosure sale, then Best Egg may declare your loan in default. The selling price of your home does not affect the remaining balance on the loan. If your Nested Loan is not fully repaid when you sell your home, then the lien on your home's fixtures will remain in place after the sale. This means that Best Egg may repossess those fixtures from the purchaser of the home if you fail to timely make your payment obligations, enter into personal bankruptcy or insolvency (and the bankruptcy court permits the repossession), or the home becomes subject to foreclosure under the new owner. As a result, you may have difficulty selling your home if your Nested Loan is not fully repaid prior to or at closing.
What if I want to refinance my home?
Your mortgage lender may require all liens be removed before refinancing your home. The only way to remove your Nested Loan lien 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 home and you fall behind in your payments, then your mortgage or home equity lender may start foreclosure proceedings to sell your home. Although Best Egg will not initiate a foreclosure of your home, we will participate in the process in order to collect the unpaid balance of your Nested Loan. Best Egg has the right to repossess fixtures in the home during the foreclosure process. If this process does not fully satisfy your Nested Loan obligations, then Best Egg may declare your loan in default and your unpaid balance may become immediately due and payable.
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 home’s fixtures until the loan is repaid, regardless of the condition of the individual items listed as collateral. You are responsible for repaying your Nested Loan in full no matter what changes are made to your property.
Will Best Egg ever sell my Nested Loan, and what would that mean?
Best Egg may sell your Nested Loan to a third party and, if you fail to meet your payment obligations, Best Egg or the third party may sell your loan to a collection agency. All third parties will be required to comply with the terms and have the rights set forth in your Loan Agreement. This includes the right to repossess the fixtures that serve as collateral for your Nested Loan under the conditions described in the Loan Agreement.

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