HELOC Loans are Available!

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What is a loan?​

A home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. With a HELOC, you can borrow up to a certain pre-approved amount, using your home equity as a guarantee. The credit line is similar to a credit card limit, where you can borrow and repay the funds over time. The interest rate on a HELOC is typically variable and tied to a benchmark such as the prime rate. HELOCs are often used for major expenses such as home renovations, college tuition, or medical bills.

How does a HELOC loan work?

Equity Assessment

A lender determines the value of your home and subtracts any existing mortgage balances to calculate the available equity.

Credit Limit

Once approved, you receive a maximum loan amount based on the equity, which can be drawn upon as needed.

Draw Period

During the draw period, typically 5-10 years, you can use the funds as necessary and only pay interest on the amount borrowed.

How to qualify for a HELOC loan

  • Equity Requirement: Lenders usually require a minimum amount of equity in your home, often around 15-20% after accounting for the first mortgage.
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  • Creditworthiness: A strong credit score (typically 620 or higher) is often a prerequisite. The exact score requirement can vary from lender to lender.
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  • Ability to Repay: Lenders will evaluate your income and employment history to ensure you have the ability to repay the line of credit.
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  • Debt Obligations: Your overall debt-to-income ratio, which compares your monthly income to recurring debt payments, is considered to ensure you can handle additional debt.
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  • Property Appraisal: The value of your home will be assessed through a professional appraisal to determine the amount of equity available.
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  • Payment Record: A history of making on-time payments on existing debts, including your mortgage, is favorable.
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Advantages of a HELOC loan

1

Financial Flexibility

Use funds for home improvements, education, or other expenses.

2

Flexible Payment Options

Interest-only payments during the draw period.

3

Low Initial Costs

Lower closing costs compared to a traditional mortgage.

Calculate Your Payments

Use our Payment Calculator to estimate your monthly mortgage payment. You can input a different home price, down payment, loan term and interest rate to see how your monthly payment changes.

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Live Market Pricing

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Loan Process

Welcome to our comprehensive guide to the loan process. Whether you’re a first-time homebuyer or experienced investor, understanding the steps involved in securing a loan is crucial. We’re here to simplify this journey for you.

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