Last updated: December 2025
Quick Answer
Yes, you can get a HELOC on an inherited property, but only after you have full legal ownership and the property title has been transferred to your name. The home must also meet HELOC eligibility criteria, including sufficient equity, a clear title, and lender underwriting standards.
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Understanding HELOCs for inherited homes
A home equity line of credit (HELOC) allows you to borrow against the equity in a property you own. If you’ve inherited a home, a HELOC may provide access to funds for renovations, debt consolidation, or other needs. However, ownership structure and legal requirements determine when and how you can apply.
To qualify for a HELOC on inherited property, you must first complete the title transfer process and ensure the estate is fully settled. Lenders typically require your name to be on the title before offering home equity credit.
Requirements to qualify for a HELOC on inherited property
To access home equity from an inherited property, you must meet several standard and inheritance-specific requirements:
- Title ownership: You must be listed as the legal property owner on the deed.
- Probate completion: If the home was part of a probated estate, the process must be finalized.
- Home equity: Most lenders require 15%–20% equity remaining after the draw.
- Credit score: Typically, you need a credit score of 620 or higher.
- Income and DTI ratio: Lenders review your income, employment, and debts to assess repayment risk.
- Appraisal: The property will undergo a professional valuation.
Some lenders may have additional guidelines for properties recently transferred via inheritance, especially if multiple heirs are involved.
What to know about probate and title transfer
You’ll need a clear legal title before applying for a HELOC. If the property went through probate, the court must confirm your ownership. Homes held in a living trust may skip probate, simplifying the process.
Once the title is in your name, update county records and check for outstanding liens. Most HELOC lenders require a clean title.
Can multiple heirs get a HELOC together?
If you’ve inherited a property with siblings or other heirs, all co-owners must agree to use the home’s equity. Lenders will typically require all owners to:
- Sign the loan documents
- Meet credit and income requirements
- Agree on the loan purpose
Alternatively, one heir can buy out the others’ shares, gain sole ownership, and apply for a HELOC in their own name.
HELOC uses for inherited homes
A HELOC on an inherited property can support a range of financial strategies. Common uses include:
- Home repairs or upgrades to improve property value
- Paying estate-related expenses like taxes or legal fees
- Converting the home into a rental property
- Consolidating personal debt using lower interest rates
Because HELOCs function as revolving credit, you can borrow only what you need and repay as you go, typically with interest-only payments during the draw period.
Tax and legal considerations for inherited property
Before applying, keep these legal and tax issues in mind:
- Stepped-up basis: Your cost basis resets to the home’s market value at the time of inheritance, which impacts future capital gains taxes if you sell.
- Lien checks: Make sure there are no estate or property tax liens.
- Occupancy requirements: Some HELOCs require the home to be a primary residence; others allow second homes or investment properties.
Consult a tax advisor or estate attorney to fully understand your obligations before borrowing against inherited equity.
Steps to apply for a HELOC on inherited property
Once ownership is established, follow these steps to access a HELOC:
- Confirm legal title is in your name
- Gather documentation, including will, probate order, or trust documents
- Contact lenders to compare HELOC terms and eligibility
- Schedule a home appraisal to determine equity
- Submit your application with income, credit, and ownership documents
- Review the offer and complete closing paperwork
Sample HELOC scenario for inherited property
| Situation | Example |
|---|---|
| Home appraised value | $400,000 |
| Inherited with no mortgage | Full equity |
| HELOC max LTV (80%) | $320,000 total borrowing potential |
| Planned HELOC draw | $100,000 for renovations and debt |
| Monthly payment (interest only) | Based on lender rate and draw amount |
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Use cases and restrictions by occupancy type
| Property use | HELOC eligibility considerations |
|---|---|
| Primary residence | Easiest path; most lenders allow HELOCs |
| Second home | Many lenders allow, but may limit LTV |
| Investment property | Available, but terms may include higher rates |
Turn inherited equity into a financial opportunity with HomeEQ
If you’ve inherited a home, a HELOC can help you unlock its value once legal ownership is confirmed.
Whether you’re planning renovations, settling estate costs, or buying out co-heirs, a HELOC provides flexible, interest-only borrowing tailored to your goals.
Just be sure the title is clear and that your finances align with the lender’s requirements.
Check your HELOC eligibility and rates in minutes.
Frequently asked questions: HELOC on inherited property
Q: Can I apply for a HELOC before probate is complete?
A: No. Lenders require clear title, which generally isn’t possible until probate is complete or the title is transferred through a trust.
Q: What if the inherited property still has a mortgage?
A: You can still apply for a HELOC if the existing mortgage is within the lender’s maximum loan-to-value ratio. The combined total of both loans cannot exceed that cap.
Q: Is it easier to get a HELOC if the house was left to me alone?
A: Yes. Sole ownership simplifies the title, decision-making, and lender approval. Co-owned properties require unanimous agreement among all heirs.
Q: What documents are needed to prove ownership of inherited property?
A: Typically, you’ll need a recorded deed in your name, a copy of the death certificate, and probate documents or trust paperwork verifying the inheritance.
Q: Can I use a HELOC to buy out other heirs?
A: Yes, many heirs use a HELOC to finance a buyout and gain full ownership of inherited property. All parties must agree to the arrangement.
