Revolving line of credit with a 10-year draw period followed by a 20-year repayment period.
Loan Amounts
Loan Amounts $50,000 – $500,000
Minimum line draw at closing is the greater of $50,000 or 50% of the total line size.
Credit Scores
Minimum credit score 680. If more than one borrower, we will use the lowest middle score among all borrowers.
Property Types
Single Family Home
Condominium
2-4 Unit Properties
Why Get a Home Equity Line of Credit?
- Be able to pull funds only when you need to.
- Interest only mortgage payments are an option.
- Safety net for future large expenses, like weddings, vacations, schooling or home remodels.
- Allows you to pull cash out of the home without touching the first mortgage (if you have a great interest rate on the first mortgage, you may not want to change that).
Qualifications
- Maximum Qualifying Ratios on these products are 45%
- Value: Appraisals are not required on a standalone HELOC (a refinance, not a purchase transaction) if the size is under $250,000. There will be an alternative appraisal product ordered that is much less expensive.
Home Purchase
Down Payment Savings
By using a HELOC, you can put less payment down on your purchase transaction. A common set up is 10% down, 10% HELOC and 80% first mortgage. This is very helpful if you don’t have the full amount of cash for 20% down and want to avoid the additional cost of monthly mortgage insurance.
Mortgage Insurance (MI) Avoided
If you use a concurrent HELOC with your home purchase and your first mortgage is 80% loan to value or lower, you will avoid having any mortgage insurance on the first mortgage.
Refinance
Loan to Value
Maximum combined loan to value for a first mortgage and HELOC is 89.99%. Maximum loan size is $500,000 for a HELOC.
- Primary Residence: minimum 10.01% equity 1-4 units, 680 credit score & maximum $500,000 loan size.
- Second Home: minimum 20% equity 1 unit, and 700 credit score, maximum $500,000 loan size.
Cash-Out
The HELOC transaction will be considered a refinanced cash-out transaction. Whatever loan size your HELOC is, the minimum draw when the transaction closes is 50% of the line.