HELOCs

How a HELOC Works

HELOC Features

A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by the equity in your home. Unlike a traditional home equity loan, a HELOC gives homeowners flexible access to funds up to an approved limit, allowing you to borrow as needed during the draw period.

HELOCs may be used for eligible expenses such as home improvements, debt consolidation, or other planned financial needs, depending on lender requirements and your financial situation.

Home equity lines of credit often include:
A revolving credit line that can be accessed as needed
Payments typically based on the amount borrowed
Variable interest rates in many programs
Flexibility to use funds for a range of purposes
Because a HELOC is secured by your home, lenders typically consider equity levels, credit profile, income, and overall financial stability when evaluating eligibility.

Who HELOCs May Be Right For

HELOCs may be considered by qualified homeowners seeking flexible access to equity rather than a lump sum. These loans may be useful for:
Ongoing home improvement projects
Consolidating higher-interest debts
Covering education or major expenses as needed
Financial planning where variable access is preferred
Eligibility and program options vary based on individual borrower profiles and lender requirements.

With a HELOC, you are approved for a specific credit limit based on the equity in your home, credit profile, and income. During the draw period (typically the first 5–10 years), you may borrow from the line of credit as needed and make payments based on the outstanding balance.

After the draw period ends, the loan enters the repayment period, when access to new funds usually ends and scheduled principal and interest payments begin. Terms, rates, and repayment schedules vary based on lender guidelines and individual qualifications.