Loan program · Home Equity
HELOC
A home equity line of credit lets you borrow against your equity as needed during a draw period, repay, and borrow again. Most HELOCs carry a variable rate tied to an index, and payments during the draw period are often interest only on the balance you have used.
Who it is designed for
- Homeowners with a low rate first mortgage they do not want to disturb
- Homeowners funding renovations in stages
- Buyers using equity for a down payment on a next home
- Homeowners who want a standby reserve rather than a lump sum
Eligible occupancy types
- Primary residence
- Second home and investment property on select programs
Down payment or equity
Not applicable. Availability is based on the equity remaining after your existing mortgage balance.
Major benefits
- Borrow only what you need, when you need it
- Leaves an existing low rate first mortgage in place
- Interest only payments during the draw period on many programs
- Reusable during the draw period as you repay
Important considerations
- Rates are usually variable and can change over time
- Payments increase when the line enters the repayment period
- Your home secures the line, so missed payments put the property at risk
- Some lines carry annual or early closure fees
How qualification generally works
- Available equity based on the combined loan to value limit
- Credit score and payment history review
- Income documentation, though often lighter than a first mortgage
- Valuation, which may be an automated value or full appraisal
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
Frequently Asked Questions
Related programs and next steps
Ultimate HELOC
An all in one line of credit used as both a checking hub and a mortgage payoff tool.
Learn more RefinanceCash Out Refinance
Replace your mortgage with a larger one and take the difference in cash.
Learn more RefinanceDebt Consolidation
Use home equity to combine higher rate balances into one payment.
Learn more Construction & RenovationRenovation Loans
Finance the purchase or refinance plus the improvements in one mortgage.
Learn moreConsidering heloc?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.