Put Your Home's Equity to Work for You

Access the value you've built in your home. Get a fixed-rate lump sum (HELOAN) or a flexible line of credit (HELOC) for renovations, debt consolidation, or your next big goal.

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What is Home Equity Loan?

Home Equity Loans are a category of financing that allows you to borrow against the equity you've built in your home. Equity is the difference between your home's current market value and what you owe on your mortgage. These loans are secured by your property.

Why Offer Home Equity program?

Home Equity Line of Credit (HELOC)

A HELOC is best for ongoing projects, uncertain costs, or as a financial safety net:

Flexibility: You can draw funds whenever you need them during the draw period, repay them, and borrow them again.
Pay for What You Use: You only pay interest on the outstanding balance, not the entire credit limit. If you don't use it, you don't pay interest on it.
Ongoing Access to Funds: It's perfect for projects with an unknown final cost (like a long-term remodel) or as a readily available emergency fund.

Home Equity Loan (HELOAN)

A HELOAN is ideal for large, one-time expenses where you know the exact cost upfront.

Predictable Payments: With a fixed interest rate, your monthly principal and interest payment is the same for the entire loan term, making it easy to budget.
Lump-Sum Payout: You get all the money at once, which is perfect for a major home renovation, consolidating high-interest debt, or paying a large tuition bill.
Rate Security: You are protected from future interest rate hikes. The rate you lock in at closing is the rate you keep.

Some lenders, like Figure, offer the best of both worlds: the flexibility of a HELOC but with the ability to lock in a fixed rate on each amount you draw.

Eligibility Requirements

These requirements are generally consistent for both HELOANs and HELOCs.

Property Requirements

Eligible Types: Primary residences (single-family homes, condos, townhomes) are standard. Some lenders will consider second homes.
Property Valuation: A valuation (appraisal or AVM) is required to confirm your home's current market value and your available equity.

Borrower Requirements

Sufficient Equity: You must have enough equity to meet the lender's CLTV requirements.
Stable, Verifiable Income: You must prove you have a reliable income to support the new potential payment.
Responsible Credit History: A history of on-time payments is essential.

Documentation Requirements

Proof of Income: 30 days of paystubs and 2 years of W-2s. Two years of full tax returns if self-employed.
Current Mortgage Statement: To verify your existing mortgage balance.
Homeowners Insurance: Your policy's declaration page.
Identification: A valid, government-issued photo ID.

Modern lenders like Figure use a more streamlined, digital process to verify income and employment, often by linking directly to bank or payroll accounts, which significantly speeds up underwriting.

How to apply for a Home Equity Loan

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STEP 1

Initial Consultation and Pre-Approval

We will discuss your financial goals (e.g., home renovation, debt consolidation, major expense) to determine whether a lump-sum Home Equity Loan or a flexible Home Equity Line of Credit (HELOC) is the better fit.
We will analyze your home's equity by reviewing your current mortgage balance against an estimate of your home's value. We will also evaluate your Combined Loan-to-Value (CLTV) ratio, which is the key factor in determining how much you can borrow.
We will guide you through the pre-qualification process, checking your credit profile and Debt-to-Income (DTI) ratio to provide an estimate of the loan amount and competitive interest rates you are likely to receive.

STEP 2

Gather Required Documentation

We will help you compile a complete package of documents needed for the official application. These typically include:

Personal Indentification: Valid government-issued ID (driver's license) and Social Security number.
Proof of Income
- Recent pay stubs (last 30 days) showing year-to-date earnings.
- W-2 forms (past two years) or 1099s.
- Tax returns (past two years), especially for self-employed borrowers.
Asset Verification: Bank statements (past two months) to verify funds and reserves.
Property and Mortgage Details
- The most recent statement for your Primary Mortgage.
- Homeowner's Insurance declaration page.
- Property Tax Statement or Tax Assessment.

STEP 3

Submitting the Application

We will check with multiple lenders in our network who specialize in home equity products (both fixed-rate loans and HELOCs). We will compare their interest rates, fees, and maximum CLTV limits to secure the best available option for your profile.
We then will submit your complete application package to the most suitable lender. We will also help manage the lender-ordered property valuation (appraisal or automated valuation model) to ensure a smooth underwriting process.

Apply now and get pre-approvedApply now and get pre-approved today