Does anyone do 125% of homes value for home equity loan?

Absolutely not sorry.

You are not likely to find that anywhere, the max I have heard of is around 95% in a very few credit unions

If you need to rehab. the house it is possible for you to do a 203K loan (we do them)and get the addtional funds. There is a section 1 funding from FHA which my branch recently handled (second loan) for someone but it is not something we normally due. I would be glad to find out more about it if you like. I am pretty sure it required the money go towards needs of the home, and I do not know if it actually goes to 125% cltv.