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Home equity line of credit

Use your home to get better rates

  • Tap into your home’s equity and get the cash you need
  • Get money without changing your current mortgage rate
Figure
NMLS #1717824|
Equal Housing Lender
  • Borrow $20K-$400K, redraw up to 100%
  • Quick approval, funding in as few as 5 days2
Get Started

on Figure's website

Figure lends in all states except DE, HI, KY, NY, WV
Spring EQ
NMLS #1464945|
Equal Housing Lender
  • More Loan Options - Get Your Best Rate
  • Fast, Simple Process + Expert Human Help
Get Started

on Spring EQ's website

Spring EQ lends in all states except AK, HI, ID, IA, NV, ND, SD, UT, WV, WY

What is a HELOC?

Cash in on your home equity

A home equity line of credit (HELOC) provides you with a line of credit that you can draw from as needed — similar to a credit card. You borrow against the equity in your home, and your home serves as collateral for the loan.

What can you do with a HELOC?

Consolidate high-interest debt

Consolidate high-interest debt

Use the cash to pay off student loans, credit cards, or other high interest debt.

Fund home improvements

Fund home improvements

Pay for a remodel, make important home upgrades, and much more.

Make a big purchase

Make a big purchase

Cover unexpected bills, a new home, or other expenses.

Benefits of a HELOC

Spend what you need, pay as you go

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Flexibility

Borrow only what you need, as you need it, and make payments only on the amount you borrow

Lower interest rates

With HELOCs you can get lower rates compared to traditional lending options

Fast funding1

Getting a HELOC is a quick and simple process - plus its all online4, so you can get money faster

Ready to take the next step?

Choose one of our partner lenders today to get started

Figure

NMLS #1717824

Get Started

on Figure's website

Spring EQ

NMLS #1464945

Get Started

on Spring EQ's website

How it works

Simple, convenient, and all online

1

Connect with a lender

2

Submit your application to the lender - all online

3

Close your loan with the lender and get cash

Financial Education

Need more info about HELOC?

More resources

Frequently asked questions

By Daria Uhlig | Updated Jun 17, 2024

Unlike other home loans, a HELOC doesn’t give you a lump sum upfront. Instead, you’ll receive a line of credit that you can use for things like home renovation projects, debt consolidation, or any other major expenses.

You can borrow as many times as you want, up to your credit limit, during the loan’s draw period. Once the draw period ends, you’ll enter the repayment period to pay off your balance. HELOCs can have draw periods of up to 10 years and repayment periods of up to 20 years.

The amount you can borrow on a HELOC varies based on how much equity you have in your home and other factors. Generally, most lenders offer credit lines around 75% to 85% of your home’s appraised value, minus any outstanding loan balance you have on your first or second mortgage.

HELOCs and home equity loans both let you borrow cash against your equity, and they both use your home to secure the loan. In addition, both are examples of second mortgages.

The primary difference between a HELOC and a home equity loan is the way you receive the cash and repay the loan.

As mentioned earlier, HELOCs give you a line of credit you can draw from as needed throughout the draw period. Depending on the loan, you might be able to make interest-only payments during the draw period.

A home equity loan gives you an upfront lump sum. You make payments on the entire amount beginning the month after you take out the loan. Unlike HELOCs, which typically have variable interest rates, home equity loans come with fixed interest rates, so your payment will stay the same for the life of the loan.

Learn More: Fixed-Rate HELOCs - A Cross Between HELOCs and Home Equity Loans

Even though you’re borrowing against your equity, you’ll still have to qualify for the loan. Here are some common HELOC requirements:

  • Sufficient equity for the amount you want to borrow
  • A debt-to-income ratio within the lender’s limits, usually 43% or less, although some lenders allow as high as 50%
  • A credit score of 640 or higher, depending on the lender, and a positive credit history

Understanding the pros and cons of HELOCs will help you make an informed decision.

Pros

  • Borrow only what you need when you need it
  • Only make payments only on the amount you withdraw
  • Typically higher credit limits and lower interest rates than credit cards
  • Interest might be tax-deductible3

Cons

  • Closing costs are similar to those of a first mortgage
  • Transaction and membership fees, in some cases
  • Generally have variable rates, which means payments can increase
  • Defaulting on the loan may result in foreclosure