Click Here to Apply for HELOC Loan Program

What is a HELOC?

A HELOC is a type of loan that allows homeowners to tap into their equity. Equity represents the difference between the market value of a property and the outstanding mortgage balance. With a HELOC, homeowners can access a line of credit that is secured by their home as collateral. This line of credit functions similarly to a credit card, enabling borrowers to borrow funds as needed, up to a predetermined limit.

During the draw period, which usually lasts several years, borrowers can use the funds and are only required to make interest payments. After the draw period ends, a repayment period begins, during which borrowers must repay both the principal and interest.

Are there any ineligible property types? 

Yes. Co-ops, commercially zoned real estate, multi-family (5+) real estate, manufactured housing, timeshares, log homes, houseboats, mixed-use properties, duplex, properties larger than 20 acres, and properties located in a disaster area are ineligible.

Only Single Family Residences (including townhomes), condos, and PUDs are eligible. 

Is there a prepayment penalty? 

No, there is no prepayment penalty on our standalone HELOC. 

If there is more than one person on the title of the subject property, does everyone on the title need to be on the line of credit?

Only One owner applies and signs for the line of credit; however, any additional owners on the title are required to sign the mortgage documents. Co-Borrowers are not permitted.

Can a Borrower use the HELOC to pay off a debt to qualify? 

No, not at this time.

What are some best practices borrower should be aware of when completing the application?

• The borrower must use their full legal name for the application.
• The platform uses automated or manual income verification methods to support the stated income on all loan Income can be a combination of earnings and/or asset depletion. The maximum value the platform will utilize for processing a loan application is the stated income.

How long does a borrower have to complete the application?

• Borrower identity and income verification must be completed within days. After a credit report is the expiration date will be extended by 20 days.
• If an application the borrower will need to reapply.

What is the timeline for funding?

• For primary owner-occupied residences, most funding happens within about 5 business days, which includes a 3-day rescission period.
• For second homes and investment properties, there is no rescission period. Most funding happens within about 5 business days.

If a spouse is not on the title, can their income be considered?

Co-borrowers are not permitted; however, in community-property states, the total annual household income (before taxes) is considered. This includes salary, bonuses, retirement income, rental income, and any other income that can provide supporting documentation.

What does the borrower need to provide to verify employment?

The System will attempt employment verification automatically. If Manual verification is necessary, the borrower will need to provide their employer's name, address, phone number and extension, Human Resource's (HR) contact information, and HR contact's job title.

How the HELOC Loan process Works?

1. Start an application 100% online
2. Select an offer from a variety of rates and term options
3. Upload ID and connect accounts (bank, tax, payroll) to automatically confirm identity, assets, and income.
4. Agree to have your credit score checked
5. Speak with an eNotary or in-person notary and sign loan documents
6. Get your funds in as few as 5 business days

Are there any pricing discounts? 

Quoted interest rates include a .25% discount for automatic payments. Opting out of automatic payments will increase the interest rate accordingly.

What are the closing fees? 

• One-time origination fee of 1.99%* or 2.99% depending on applicant selection (choices vary based on creditworthiness, state of residence, and LTV) 
• Notary Fee (applicable for states & counties that do not allow for e-notary services) 

Are solar panels/UCC filings considered a lien when determining the HELOC lien position? 

Yes, solar panel financing is considered a lien and may affect the HELOC being in an allowable 1st, 2nd, or 3rd lien position.  HELOC cannot be greater than a 3rd lien position in any instance. 

How are property values determined?

An internally pulled AVM will be used to determine the value of the subject property. No rebuttals will be considered. 

How many applications can a borrower have? Can the borrower apply for HELOCs on multiple properties owned? 

Yes, however there are restrictions to consider. The borrower may only have one application in process and cannot apply for a new HELOC until 45 days has passed from the closing of the initial HELOC. 

A maximum lending limit per borrower is determined during the first HELOC application, and the borrower cannot exceed that limit on subsequent applications.  For example, if the borrower’s established maximum lending limit is $100,000 on their initial application, they cannot exceed that limit in aggregate.  

Can a Power of Attorney be used for this transaction? 

No, POAs are not accepted at this time. All signers must be able to personally execute the closing documents. 

How does the draw work? 

On our standalone HELOC, borrowers will receive 100% of the HELOC amount. Additional draws are based on the original credit limit approved (loan amount + origination fee). As the borrower begins to pay down their loan, they may be able to redraw up to 100% of their credit limit*. 

Additional draws must be in increments of at least $500, and the total outstanding balance cannot exceed 100% of the credit limit. APR is based on the prime index at the time of the redraw and the fixed margin rate outlined in the HELOC agreement. Credit will not repulled with requested withdrawals. 

*NOTE: Borrower may pay off or pay down the HELOC balance at any time; however, a new AVM will be run on future draw requests. If the property value has significantly declined, this may impact the borrower’s ability to take out a new draw at that time. 

How will the HELOC appear on the borrower’s credit profile? 

It will show as a “Revolving Tradeline” on the borrower credit profile. 

Draw Terms and Structure

• A full draw is required at closing
• No prepayment penalty applies 
• 100% Maximum redraw available (based on initial credit line) in minimum increments of $500* 
• Draw period of 5, 4, 3, or 2 years, depending on initial term (30, 15, 10, or 5 years, respectively)

NOTE: HELOC is subject to Lender review and approval.