Home Equity Line of Credit  

A home equity line of credit, known as a HELOC, is a revolving line of credit
heloc loan

What is a HELOC?

A home equity line of credit, known as a HELOC, is a revolving line of credit borrowed against the equity of your home. Like a credit card, HELOC loans are flexible, allowing you to draw money as you need it instead of taking out a single lump sum loan.

How does a HELOC loan work? 

Since a HELOC loan is a mortgage line of credit, you can borrow funds up to a set credit limit, and interest is charged on the amount borrowed. The revolving credit line can be paid down and reused during your draw term, which typically lasts 5 to 10 years. You’ll only pay interest throughout the draw term.  
After the draw term is complete, you may either pay the balance in full or pay according to a set schedule (interest must still be paid). You could also refinance the equity line for an additional 5 to 10 years.

What are the benefits of a HELOC? 

What you do with funds from a HELOC is up to you – it’s your money, after all! Home improvements, large purchases, tuition costs … here are a few popular ways you can put your equity to work for you: 

Additional HELOC loan benefits

HELOC loans offer variable or fixed interest rates that are usually lower than the interest rate on a credit card. Credit limits are also variable and depend on your home equity.

Closing on a HELOC loan is easy and may even take place in your own home. 

Several options are available to you for accessing cash, including personal withdrawals, check writing, and card use.

You choose how much to borrow and use, as well as how much to repay and when, provided it’s equal to or more than the minimum payment.

Depending on your situation, interest paid on a HELOC loan may be 100% tax deductible under federal and state income tax laws. Not all states may allow this deduction. Consult a tax advisor to make sure you’re eligible. 

READY TO LEARN MORE ABOUT
THE FHA LOAN?

A VA loan is a type of mortgage loan that is backed by the U.S. Department of Veterans Affairs (VA). These loans are designed to help military members and veterans purchase homes with favorable terms, lower interest rates, and reduced closing costs.
VA loans are exclusively available to active military members, veterans, and their surviving spouses. To be eligible for a VA loan, you must have served in the military for at least 181 days during peacetime, or 90 days during war time, and have an honorable discharge.
VA loans offer a range of benefits, including no down payment required, lower interest rates, no private mortgage insurance (PMI), and reduced closing costs.
To apply for a VA loan, you will need to check your eligibility, choose a VA-approved lender, gather the required documentation, complete the loan application, provide supporting documentation, get pre-approved, find a home, finalize the loan, and close the loan.
When applying for a VA loan, you should consider your credit score, debt-to-income ratio, income, and employment history.

READY TO Apply for a VA LOAN?

Eligibility requirements

Equity in your home is a key component in determining your available credit. When considering a HELOC, remember that the loans are secured by your home. Failure to pay could damage your credit standing and result in the loss of your home through foreclosure.  
If you’re ready to put your home’s equity to work for you, we’re here to help get it done.  

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