In Homeowner’s loan, the borrower mortgage’s some asset as collateral for the loan. Home, building, real estate etc are often considered as collateral. The loan is secured against collateral in the situation that the borrower defaults for payment; the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower. As the loan becomes secured, the lender is out of risk of repayment and now, he can negotiate with interest rate & duration of the repayment.For middle-class American’s, the Home Owners’ Loan Corporation, founded in 1933, was a benefit for the new deal innovation which helped account for home ownership. It offers federal funding for lenders in the private housing market. The purpose of this deal was to refinance the home loans protect from the foreclosure. These deals actually extend the previous short loan to long term, so that their dream can be fulfilled and not to lose there homes.The key factor for the majority’s failure was the restrictive mortgage system. In which borrowers were required to make down payments averaging around 35 percent for the loans prevailing only five to ten years at an interest up to 8 percent.These secured loans are given by banks & financial companies by keeping the house as mortgage from the owners. The one good advantage from this loan is that loan amount can be equal or more to the amount of the home. Properties are sometimes assessed by the lender in order to decrease the risk for the loan provision. The assets may be forfeited to the lender if the borrower fails to make various monthly repayments.With Homeowner’s loan amount, one can refurnish or designed it with extension as per the latest fashion. Even it can be used to decorate the house interior. These can also be used for other financial rearrangements like debt consolidation etc. And the repayment can be extended from about 20-25 years. There are various methods for the repayment which are flexible as per the policies of the lending agencies. Most loans require some sort of positive credit to be established by the borrower first. And now days there are many reliable ways to get loans to fulfill the dreams.