Home Equity Loans (HELOANs)

What Is a HELOAN?

A Home Equity Loan (HELOAN) allows homeowners to borrow a lump sum using the equity in their property. HELOANs come with fixed interest rates and fixed monthly payments, making them ideal for borrowers seeking predictable repayment terms.


Loan Amount & Equity Requirements


  • Loan Amounts: Typically based on a percentage of your home's appraised value minus any outstanding mortgage balance.
  • Loan-to-Value (LTV): Most lenders allow borrowing up to 85–90% of your home’s value.


Credit Score & Income Requirements


  • Minimum Credit Score: Generally 620 or higher, with better rates for higher scores.
  • Income Verification: Traditional income documentation is usually required, though some lenders offer flexible options.


Interest Rates & Repayment Terms


  • Fixed Interest Rates: Unlike HELOCs (Home Equity Lines of Credit), HELOANs offer fixed rates for consistent monthly payments.
  • Repayment Terms: Commonly range from 5 to 30 years, depending on loan amount and lender.


Unique Features of HELOANs


  • One-Time Lump Sum: Receive the full loan amount upfront for immediate use.
  • Predictable Payments: Fixed payments make budgeting easier throughout the loan term.
  • Flexible Use of Funds: Use for home renovations, debt consolidation, large purchases, or other financial needs.
  • Lower Interest Rates: Typically offer lower rates compared to credit cards and personal loans.


Property Types Allowed


  • Primary Residences, Second Homes, and Investment Properties: Eligible under most HELOAN programs.
  • Condos and Multi-Unit Properties: Allowed, subject to lender guidelines.


Assumability


  • Non-Assumable: HELOANs cannot be transferred to another borrower.


Ideal Borrowers for HELOANs


  • Homeowners seeking a lump sum for renovations, debt consolidation, or major expenses.
  • Borrowers who prefer fixed interest rates and consistent monthly payments.
  • Individuals with substantial home equity looking for a lower-rate borrowing option.


Contact Us for HELOAN Guidance

If you’re considering tapping into your home’s equity, our team can help you explore HELOAN options and secure the best terms for your financial goals. Let us guide you through the process with clarity and ease.