$25K - $500K
HELOC
Tap into your home equity with a revolving line of credit. Use it for business investment, debt consolidation, or cash reserves.
HELOC
$25K - $500K
Overview
A Home Equity Line of Credit (HELOC) lets you tap into the equity you've built in your home as a revolving source of capital. Draw funds as needed, repay, and draw again — similar to a business line of credit, but secured by your home equity. Many business owners use HELOCs to fund business investments, consolidate higher-interest debt, or maintain a cash reserve for opportunities. Interest may be tax-deductible depending on how funds are used, and you only pay interest on the amount you've drawn.
Key Features
- Draw funds as needed, revolving access
- Interest only on what you use
- Business or personal use
- Potential tax-deductible interest
Funding Range
$25K - $500K
Category
Real Estate
Financing solutions for commercial and residential properties.
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Start ApplicationStep by Step
How HELOC works
Apply with your property information
Provide details about your home — current mortgage balance, estimated value, and location — along with your personal financial information. We use this to estimate your available equity.
Property appraisal and underwriting
The lender orders an appraisal to determine your home's current market value and calculates your available equity (typically up to 80-90% of the home's value minus your existing mortgage).
Receive your credit line
Once approved, your HELOC is established as a revolving credit line. Access funds via online transfer, checks, or a dedicated card depending on the lender.
Draw, repay, and redraw
Use your HELOC like a checking account backed by your home equity. During the draw period (typically 5-10 years), you can access and repay funds freely. After the draw period, you enter a repayment phase.
Why Choose This Product
Built for growing businesses
Leverage Home Equity
Access the equity you've already built without selling your home or taking a second mortgage.
Revolving Flexibility
Draw, repay, and redraw as your needs change. No need to reapply for additional funding.
Dual-Purpose
Use funds for business investment, personal needs, debt consolidation, or as a strategic cash reserve.
Eligibility
Who qualifies for HELOC
- Minimum 620 credit score (most HELOC programs require higher credit than business lending products)
- Sufficient home equity — typically at least 15-20% equity after the HELOC is established
- Stable income documented through tax returns, bank statements, or employment verification
- Property must be a primary residence (some programs allow second homes)
- Current on existing mortgage payments with no recent late payments
Real-World Scenarios
Common use cases
A business owner draws $100K from her HELOC to fund a second location for her retail business, repaying from the new location's revenue over the following 18 months.
An entrepreneur uses a $75K HELOC to consolidate high-interest business credit card debt into a single lower-rate payment, saving thousands in annual interest costs.
A real estate investor maintains a $200K HELOC as a ready-access cash reserve, drawing on it for down payments on investment properties and repaying after each property is refinanced into a permanent mortgage.
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HELOC vs. alternatives
A HELOC offers revolving access similar to a business line of credit, but secured by home equity rather than business assets — which typically means lower interest rates. Unlike a residential mortgage refinance, a HELOC does not replace your existing mortgage; it sits alongside it as a second lien. A cash-out refinance may offer a lower rate but involves closing costs and replaces your first mortgage. For purely business-related capital needs, a business line of credit keeps your home out of the equation, which some borrowers prefer.
Frequently Asked Questions
Common questions about HELOC
Most HELOC programs require a minimum credit score of 620-680, which is higher than many business lending products. Strong equity positions can sometimes offset borderline credit scores.
HELOCs typically take 2-4 weeks from application to funding, largely due to the property appraisal requirement. Some lenders offer expedited processes that can close in as few as 10 business days.
You will need a government ID, proof of income (tax returns or bank statements), your current mortgage statement, homeowner's insurance information, and property details. The lender will order a property appraisal as part of the process.
Yes. Many business owners use HELOCs to fund business investments, though the HELOC is secured by your personal residence. Consult with a tax advisor about potential interest deductibility when using HELOC funds for business purposes.
Most HELOCs have a draw period of 5-10 years, followed by a repayment period of 10-20 years. During the repayment period, you can no longer draw new funds and must repay the outstanding balance. Some lenders offer the option to refinance or renew the HELOC.
A pre-qualification may use a soft inquiry, but a formal HELOC application requires a hard credit pull. The impact is typically small and temporary — usually 5-10 points — and recovers within a few months.
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