Specialty Lending
A HELOC — or home equity line of credit — lets you borrow against the equity you've built in your home, similar to a credit card. You draw from it as needed, pay interest only on what you use, and can repay and borrow again during the draw period.
A HELOC gives you a line of credit secured by your home's equity. You can draw from it, repay it, and draw again — much like a credit card.
HELOCs can sit behind your existing first mortgage (second lien) or replace it entirely (first lien), each with different terms.
Occupancy type — primary home, second home, or investment property — affects how much you can borrow.
A second lien HELOC sits behind your existing mortgage — you keep your current first loan in place. A first lien HELOC replaces your existing mortgage entirely and becomes your primary lien. The right choice depends on your rate, equity, and goals.
Yes, though the requirements are typically more stringent than on a primary home. Expect lower borrowing limits and stricter qualifying.
During the draw period, you can pull funds as needed — up to your credit limit. You only pay interest on what you've actually borrowed, not the full line amount.