Support FAQs
HomeEQ is here to support you through the HELOC process from start to finish. Check out our FAQs to learn more. Decide whether a HELOC is right for you, and move forward to access cash from your home equity to make life’s expenses affordable.
HELOCs
With HomeEQ’s fully-digital HELOC experience, we skip the traditional underwriting to offer a truly push-button experience, from pre-approval to accessing your cash.
We offer our quick, easy, self-service HELOC option to empower homeowners to finance important moments they face in life. We offer funds faster than the typical bank or credit union so that you can make the most of your home equity as you please.
Once your HELOC is approved, you’ll receive access to funding that gives you cash to use as you please.
You can use it for large expenses like home improvements, paying for your child’s wedding, a car, and other expenses that require cash or don’t make sense on a credit card.
HELOCs can also be used to pay down high-interest debt like credit cards, student loans, or personal loans, making debt management more achievable and affordable.
The amount of cash you can access from your property depends on a variety of factors. First you’ll need to know how much equity you have, as well as the value of your house.
The amount of equity you have is essentially how much of your home you own, or how much of your mortgage you’ve already paid off. To calculate how much equity you have, subtract the balance of your mortgage from the property’s value.
HomeEQ offers HELOCs from $25,000-$350,000. The higher your equity, home value, and credit score, the larger the loan amount you can qualify for.
A soft credit pull is often done for the purpose of initial steps like a pre-approval, allowing you or a lender to see basic information about your credit history — but not your full credit report. It doesn’t affect your credit score in any way.
A hard credit pull is done when you’re ready to apply for a loan like a HELOC. The lender does a hard credit pull to view your entire credit report, which will help to determine what terms you qualify for. The hard credit pull will also be reported to your credit report and likely remain there for about 2 years. Having a one or two hard credit pulls on your report won’t hurt your credit. If you have more than a few though it can lower your credit score, so you want to be mindful when authorizing a hard credit pull.
With HomeEQ’s digital HELOC application, a soft credit pull is needed for initial account setup and pre-qualification. Once you’re ready to proceed, you’ll authorize a hard credit pull through the application process to officially apply for the HELOC.
How it Works
Our digital HELOC simplifies documentation by leveraging digital verification methods. All you need to apply is to provide verification access using your personal information such as a driver’s license, social security number, income verification (Bank account credentials where pay is being received as Direct Deposit or Credentials to Payroll provider) and Home owner Insurance verification. We’ll pull in the necessary data to verify things like income, credit score, home value, and more.
We will also want to make sure Credit is not frozen at the Credit Bureaus
This allows you to avoid the limitations of traditional underwriting where a HELOC could take weeks or even months, requiring an in-person appraisal, various forms of documentation, and a team of people to process the loan.
HELOC terms are based on details like each homeowner’s income, credit score, debt-to-income ratio, home equity, home value, property type, and more.
When you apply for a HELOC, our digital process will run your specific details through our system to understand exactly what terms you qualify for. You’ll see what options are available to you and choose the options that best meet your needs.
This could include options like longer term lengths for lower monthly payments or shorter term lengths for lower interest costs over the life of the loan.
You’ll also see your personalized interest rate and potential loan limit, which will all give you a clearer picture of the cash you can access from your home equity, as well as the cost of the HELOC overall.
There are many different financing options available, especially to those who have assets to leverage like a home. Consider what you need financing for and how to balance your immediate needs with long-term affordability.
Each financing option comes with pros and cons. For example, HELOCs give you access to cash, which gives you flexibility to pay for large expenses. A HELOC requires your property to be used as collateral, which can be a risk if you default on the loan. But because you’re leveraging your property, lenders can give you lower interest rates and more affordable terms that make monthly payments easier to sustain. HELOCs don’t have prepayment penalties so can be paid off more quickly over time or when you sell the property.
Other options like credit cards or personal loans don’t allow you to leverage property as collateral. Lenders and creditors see these as a bigger risk so they often charge much higher interest rates, making these potentially harder to afford in the long run. Credit cards also can’t be used for large expenses in some cases.
A soft credit pull is often done for the purpose of initial steps like a pre-approval, allowing you or a lender to see basic information about your credit history — but not your full credit report. It doesn’t affect your credit score in any way.
A hard credit pull is done when you’re ready to apply for a loan like a HELOC. The lender does a hard credit pull to view your entire credit report, which will help to determine what terms you qualify for. The hard credit pull will also be reported to your credit report and likely remain there for about 2 years. Having a one or two hard credit pulls on your report won’t hurt your credit. If you have more than a few though it can lower your credit score, so you want to be mindful when authorizing a hard credit pull.
With HomeEQ’s digital HELOC application, a soft credit pull is needed for initial account setup and pre-qualification. Once you’re ready to proceed, you’ll authorize a hard credit pull through the application process to officially apply for the HELOC.
HELOC for Debt Consolidation
When you apply for a HELOC, the required hard credit pull can cause a small temporary dip in your credit score like any financing. Once you apply the HELOC to consolidate and pay down your debt though, you’ll often see an increase in your credit score.
If you pay down credit card balances, for example, you’ll reduce credit card utilization. You’ll also add a new loan type, diversifying your credit types. Impacts like these improve and increase your credit score, as long as you continue to make payments on-time and keep debt in check.
Because HELOCs leverage your property as collateral, there is less risk to the lender. We can provide better terms to you, the borrower, which can make HELOCs more affordable than other financing options.
For example, interest rates for HELOCs are often much lower than financing options like credit cards, which can go to upwards of 20-30%. HELOCs typically offer easier qualification requirements and better terms than personal or student loans because the home is used as collateral.
Using your home as collateral does come with the risk of losing your home if you can’t pay back the HELOC. It’s important to explore whether a HELOC is right for your situation.
When you apply for a HELOC, your loan amount (or loan limit for a HELOC) will be determined by a handful of factors including your home’s value, your current equity, your credit score and income, debts, and more.
You can borrow up to 80% of your home’s value and will have a set draw period where you can redraw from the amount you’ve paid on the HELOC to use for other expenses.
Depending on how much debt you have, your loan limit could cover the entire balance of your existing debts in one monthly payment, consolidating all of the debt. Or you might borrow less and consolidate only the high-interest debts you have. This still allows you to free up high-interest costs so that you can instead use that money to pay down remaining debt more quickly and affordably.
HELOC for Home Improvement
Depending on your reason for home improvements, your definition of value might differ. For example, in preparing your house to sell, you might ask a local real estate agent or appraiser what increases the actual price of your property in your market to focus on those renovations — and get the best return on your investment.
To catch up on overdo maintenance or customize your home to your liking, you may find that the highest value is in making the home feel livable and comfortable.
People may prioritize improvements like modernized kitchens, bathrooms, and appliances. Others might be more focused on solid foundations, roofing, and windows. And for some, curb appeal goes a long way, so it can be worth investing in landscaping, new siding, etc.
In considering your options, you’ll want to decide whether the value of home improvements will outweigh the costs.
Researching specifics like the cost of materials and labor for your intended projects can help you determine whether a HELOC will cover the expenses you need for potential home improvements. Ask home improvement contractors and other relevant service providers for quotes to help you determine specific costs. This helps you understand the full cost of home improvements or helps to prioritize which ones are worth financing now.
When you apply for a HELOC, you can compare these costs to the loan limit you’re approved for. HomeEQ’s HELOC amounts range from $25,000-350,000. Your custom HELOC amount will be based on a variety of factors, including your home’s current value, current equity, your credit score and income, debts, and more.
You can borrow up to 80% of your home’s value and will have a set draw period where you can redraw from the amount you’ve paid on the HELOC to cover home improvement costs.
HELOCs are often a more affordable financing option than choices like credit cards or personal loans for home improvements.
Credit card interest rates can quickly climb creating added long-term expenses and unpredictable monthly payments. Also, credit cards don’t typically work when needing to pay for large expenses that require cash.
In comparison, personal loans often have higher interest rates than a HELOC because you don’t have collateral for the loan like you do with a HELOC.
HELOC for Personal Milestones
When you apply for a HELOC, the required hard credit pull can cause a small temporary dip in your credit score like any financing.
Your credit score may increase over time with a HELOC. By adding a new loan type, you diversify your credit types. Using a HELOC rather than a credit card for personal milestones will help you keep your credit utilization down. If you use the HELOC to pay down or pay off other debts, this can also have a positive impact.
Impacts like these improve and increase your credit score, as long as you continue to make payments on-time and keep debt in check. It’s important to borrow what you can afford in the long and short term to avoid potential harm to your credit.
Before applying for a HELOC, it can help to research specifics about the expenses you plan to use it for.
For example, you may look into prices of new cars, venue costs for a child’s wedding, appliance prices for a kitchen upgrade, etc. If you’ll be paying someone for a service like home improvement, ask for cost estimates and quotes. If you’re paying down debt, calculate your pay-off amounts.
Information like this helps you understand the full costs you need to cover and whether a HELOC is the right solution.
When you apply for a HELOC, you can compare these costs to the loan limit you’re approved for. HomeEQ’s HELOC amounts range from $25,000-350,000. Your custom HELOC amount will be based on a variety of factors, including your home’s current value, current equity, your credit score and income, debts, and more.
You can borrow up to 80% of your home’s value and will have a set draw period where you can redraw from the amount you’ve paid on the HELOC.
HELOCs are often a more affordable financing option than choices like credit cards or personal loans for overall financial wellness.
Credit card interest rates can quickly climb creating added long-term expenses and unpredictable monthly payments. Also, credit cards don’t typically work when needing to pay for large expenses that require cash.
In comparison, personal loans often have higher interest rates than a HELOC because you don’t have collateral for the loan like you do with a HELOC.