HomeHome Equity Line of Credit

Home Equity Line of Credit

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.