HELOC Mortgage Loan Programs

A Home Equity Line of Credit (HELOC) mortgage loan is a type of loan that allows borrowers to access their home's equity as a line of credit.
HELOC Mortgage Loan Highlights
Unlocking Your Home's Equity: HELOC Mortgage Programs for Flexible Borrowing and Repayment
Unlocking Your Home's Equity: HELOC Mortgage Programs for Flexible Borrowing and Repayment
  • Property types allowed: HELOC mortgage loan programs typically allow borrowers to use their primary residence as collateral. However, some programs may allow borrowers to use a second home or investment property as collateral as well.

  • Maximum Loan-to-Value (LTV) ratio: HELOC mortgage loan programs typically have a maximum CLTV ratio of 80-95%, depending on the program guidelines. This means that borrowers can borrow up to 80-95% of the home's value, minus any outstanding mortgage balance.

  • Interest rates: HELOC mortgage loan programs often have variable interest rates, which means that the interest rate can fluctuate over time. The interest rate is typically tied to a benchmark rate, such as the prime rate, plus a margin.

  • Repayment terms: HELOC mortgage loan programs usually have a draw period, during which borrowers can access the line of credit and make interest-only payments, typically for the first 10 years of the loan. After the draw period ends, borrowers must start repaying the principal and interest on the loan, usually over a 10-20 year repayment period.

  • Fees: HELOC mortgage loan programs may have fees, such as an application fee, origination fee, and annual fee. It's important for borrowers to understand the fees associated with the loan before applying.

  • Credit score requirements: HELOC mortgage loan programs typically require a good credit score, but can go as low as 600 or higher. Underwriters will also look at the borrower's debt-to-income ratio and other factors to determine eligibility.

In summary, borrowers should understand the property types allowed, maximum LTV ratio, interest rates, repayment terms, fees, and credit score requirements before considering a HELOC mortgage loan program. It's important to shop around and compare offers from different lenders to find the best deal.

Get an Instant Mortgage Rate Quote from The Mortgage Calculator

Start Below for an Instant Mortgage Rate Quote

About The Mortgage Calculator
The Mortgage Calculator

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 400 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Learn More About Us