Home Equity Program
Transform home equity into cash for your next move.
What is a Equity Loans?
A Loan for the Home, Not the Land
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.
- Ongoing Access to Funds: Ideal for projects with unknown final costs or as an emergency fund.
Home Equity Loan (HELOAN)
A HELOAN is ideal for large, one-time expenses where you know the cost upfront:
- Predictable Payments: Fixed interest rate makes budgeting easier.
- Lump-Sum Payout: Receive all funds at once — perfect for major expenses or debt consolidation.
- Rate Security: You’re protected from future interest rate hikes.
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.
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.
Loan Process: Step-by-Step
For Traditional Home Equity program, the process is nearly identical until the very end when the funds are delivered.
STEP 1
The Submission Package
To get started, the borrowers need a complete application package.
- 1003 Application
- Borrower’s Driver’s License or ID
- Income Documents (Paystubs for the last 30 days, 2 years W2s/Tax Returns)
STEP 2
Clearing Conditions
An underwriter reviews the borrowers’ complete financial profile and issues a final loan approval if all guidelines are met.
STEP 3
Ordering the Appraisal & Title Search
The lender orders an appraisal of the property and runs a title search to confirm ownership and lien status.
STEP 4
Closing & Right of Rescission
Borrowers sign the final loan documents. For a primary residence, a mandatory three-day right of rescission allows borrowers to cancel the transaction without penalty.
STEP 5
Funding
This is where the process differs. After the three-day rescission period expires:
- For a HELOAN:The lender disburses the entire loan amount to the borrowers in a single lump sum.
- For a HELOC: The lender activates your credit line. The borrowers are given checks or a special card to begin drawing funds as they need them, up to their approved credit limit.
- For FIGURE: The application is 100% online. The appraisal and title search are automated and happen nearly instantly in the background. Approval can happen in as little as 5 minutes, driven by their technology. Closing is completed via a remote online notarization, which borrowers can do from home. Funding can occur in as few as 5 days from the start of the application. For more information
Approved Lenders
Our Chattel Lending Partners
Our In-House Home Equity Program Expert
For questions, scenario reviews, or assistance with a file, please connect with our designated expert:
Disclaimer: This guide was created on August 25, 2025, and synthesizes information from the provided training documents and qualification matrix. Guidelines are subject to change. Always verify current program details directly with Triad.
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