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.
Guidance by Manny
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
Not sure this is the right mortgage?
Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.
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.