HELOC / Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) lets homeowners borrow against the equity they've built in their home as a revolving line of credit, without refinancing their first mortgage.
Min. Down Payment
N/A — available to existing homeowners
Credit Guidance
Generally 620-680+ depending on program and combined LTV
Income / DTI
Standard income and DTI documentation required
Occupancy
Primary residence or second home (investment property HELOCs less common)
A Home Equity Line of Credit (HELOC) allows homeowners who have built equity in their property to access that equity as a revolving credit line, without replacing their existing first mortgage. This makes a HELOC structurally different from a cash-out refinance. During the draw period (typically 10 years), you can borrow up to your credit limit, repay, and borrow again as needed. You only pay interest on what you've actually drawn. After the draw period, the line closes and enters a repayment phase. Most HELOCs carry a variable interest rate, which means your cost of borrowing can change over time. Some lenders offer fixed-rate HELOC options or fixed-rate lock features on portions of the balance. Your home is the collateral for a HELOC. This is an important consideration: if you are unable to repay, the lender has a claim on your property. HELOCs should be approached thoughtfully as part of a broader financial plan. Whether a HELOC or a cash-out refinance is a better tool depends on your current mortgage rate, how much equity you need, and your plans for the funds. We can walk through both options with you.
Key Benefits
- Access home equity without replacing your existing first mortgage
- Draw funds as needed — you only pay interest on the amount you actually use during the draw period
- Flexible use of funds: home improvements, debt consolidation, education, or other needs
- Revolving structure allows repeated draws up to the credit limit during the draw period
Considerations
- Most HELOCs carry a variable interest rate, which means your payment can change over time
- Your home serves as collateral — failure to repay could put the home at risk
- The draw period ends and a repayment period begins, often with higher required payments
- Requires sufficient equity in your home
- Lender can reduce or suspend the line under certain conditions
Frequently Asked Questions
Have questions about HELOC / Home Equity Line of Credit?
Mia can help you understand if this program fits your situation — ask her anything about eligibility, timing, or how to get started.
Ask MiaWork Hard Mortgage · NMLS #2396714 · Equal Housing Opportunity · Licensed in Utah. Program availability and guidelines may change. Final eligibility depends on credit, income, assets, property type, occupancy, and underwriting approval.