HELOC FAQ

What are the advantages of a HELOC?

A home equity line of credit is very similar to a credit card. It has a spending limit, and your home is used as collateral. While this is very similar to a traditional loan, there are many advantages of taking a line of credit over another kind of loan, including flexibility, a variety of payment options and a quicker process.

How flexible are HELOCs?

Unlike a home loan, home equity lines of credit let you draw money as you need it. Rather than receiving the entire amount of borrowed money all at once, you have the ability to borrow against your home up to the amount of the credit line.

What are the payment options?

Payment is flexible to an extent. While you are required to make a monthly payment, you can make a payment of as much or as little as you want, as long as it exceeds the minimum required payment. If you would like to pay off your HELOC before the end of your draw period, you can certainly do so.

How fast is the HELOC application process?

Because less is required to apply for a HELOC, you will generally move through the application process faster than if you were to apply for a mortgage. While mortgages can take a matter of months, a HELOC can be issued to you within a few weeks.

What do I need to apply for a HELOC?

• W-2s from the past two years
• Most recent paystub
• Copy of driver’s license or ID
• Last two years of tax returns (if self-employed or own rental property)
• Current awards letter from Social Security (if applicable)
• Proof of pension or retirement income (if applicable)
• 1099 forms (if applicable)