Last updated: November 2025
Quick Answer
Yes, a homeowner can have more than one home equity loan or HELOC, but it depends on your equity, creditworthiness, and lender guidelines. You may either take out a second lien or refinance your existing HELOC into a larger one. Lenders evaluate your total equity and your combined loan-to-value (CLTV) ratio.
What is a HELOC?
A home equity line of credit (HELOC) allows you to borrow against the equity in your home using a revolving line of credit. Most HELOCs have a draw period (typically 10 years) during which you can borrow funds as needed, followed by a repayment period.Unlike a lump-sum home equity loan, a HELOC functions like a credit card with a limit based on your equity. You pay interest only on what you use, and the credit replenishes as you pay it down.
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How many home equity loans or HELOCs can you have?
Technically, there’s no legal limit on the number of HELOCs or home equity loans you can take out. However, lenders will evaluate your:
- Available equity: Do you have enough untapped value in your home?
- Combined loan-to-value (CLTV): This includes all liens and loans tied to your property.
- Credit profile: Good credit, low debt-to-income ratio, and strong repayment history.
- Lien position: Lenders prefer to be first or second in line for repayment in case of default.
If you have significant equity and a strong credit profile, you may qualify for a second HELOC or home equity loan—even from a different lender.
Read more: What is a HELOC?
First lien vs. second lien: Why it matters
When you take out a mortgage or HELOC, the lender places a lien on your property.
The order of those liens affects repayment priority:
- First lien: Typically, your primary mortgage
- Second lien: First HELOC or home equity loan
- Third lien (or more): Additional equity products
Lenders consider higher-lien loans riskier, which often results in:
- Higher interest rates
- Stricter approval criteria
- Lower credit limits
This is why most borrowers either refinance their existing HELOC or apply for a single, larger second lien rather than stacking multiple products.
Read more: How does a HELOC work?
What lenders consider before approving a second HELOC
Before issuing a second home equity loan or HELOC, lenders examine several factors:
1. Combined loan-to-value (CLTV) ratio: Most lenders cap CLTV between 85%–90%.
For example:
| Home value | Mortgage | First HELOC | Total loans | CLTV |
| $500,000 | $300,000 | $50,000 | $350,000 | 70% |
| Max CLTV | — | — | $425,000 | 85% limit |
In this case, you may still qualify for a second HELOC of up to $75,000.
2. Credit score and DTI ratio: Expect minimum credit scores of 660–700 and debt-to-income ratios under 43%.
3. Property appraisal: An updated appraisal confirms your current home value and remaining equity.
4. Purpose of funds: Some lenders ask how you plan to use the second HELOC: home improvements, debt consolidation, etc.
Learn more: Use our HELOC calculator.
Can you mix a home equity loan and a HELOC?
Yes. You can have a home equity loan (a fixed lump-sum loan) and a HELOC (a revolving line of credit) on the same property.
These often serve different financial goals:
| Feature | Home Equity Loan | HELOC |
| Structure | Lump-sum loan | Revolving line of credit |
| Interest rate | Fixed | Usually variable |
| Best for | Large one-time expenses | Flexible or ongoing expenses |
| Repayment | Fixed monthly payments | Interest-only during draw |
Some homeowners use both to manage different needs—for example, using a home equity loan for major renovations and a HELOC for emergencies.
Learn: How to apply for a HELOC.
Risks of having multiple home equity products
Holding more than one HELOC or home equity loan increases your total debt and repayment obligations. Consider the following risks:
- Increased foreclosure risk: Your home secures each loan
- Rising interest costs: Multiple balances may lead to compound interest
- Variable rate exposure: HELOC rates can increase during the repayment period
- Lower flexibility: Some lenders may not allow concurrent equity products
You should only pursue multiple equity loans if your income, equity, and financial planning fully support the additional debt.
Having more than one HELOC: A strategic move or a risk?
If you’ve built substantial home equity and want to maximize it without refinancing your mortgage, a second HELOC or home equity loan could make sense. But timing, credit strength, and total loan burden matter.
Before proceeding, compare your options:
- Refinance your current HELOC for a higher limit
- Open a second HELOC with the same or a different lender
- Use a home equity loan as a fixed-rate alternative
Work with a lender who can help you evaluate the best structure for your needs.
Can your home support more than one equity product?
Your home’s equity is a financial asset, but it’s not unlimited. Just because you can apply for a second HELOC doesn’t mean you should. Consider:
- Total equity available
- Long-term interest implications
- Alternative loan options
- Repayment plans and contingencies
Use equity responsibly to avoid overleveraging your property or straining your monthly budget.
More equity, more options—if you qualify
Lenders allow multiple equity loans in specific scenarios, especially when home values are high and your credit profile is strong.
A second HELOC can give you more flexibility, but only if you qualify and manage repayment wisely.
Find out how much you can borrow with a second HELOC.
FAQ: More than one home equity loan or HELOC?
Q: Can I have two HELOCs at the same time?
A: Yes, it’s possible—but lenders evaluate your combined loan-to-value (CLTV), credit score, and existing debt before approving a second HELOC.
Q: Can I get a HELOC from a different bank if I already have one?
A: Yes. You can apply for a second HELOC from a different lender, provided you meet their underwriting criteria and have enough equity available.
Q: Is it better to refinance a HELOC or get a second one?
A: If you need a larger credit line, refinancing into a single, higher-limit HELOC may offer better terms. A second HELOC could work if rates are favorable and CLTV is low.
Q: Does having multiple home equity loans hurt my credit?
A: Taking on more debt can impact your credit utilization and score. However, on-time payments and low balances help mitigate negative effects.
Q: Can I have a HELOC and a home equity loan at the same time?
A: Yes. Some homeowners use both to manage different expenses, but lenders will assess your total borrowing risk.
