HELOC. Owner-occupied equity.
Home Equity Line of Credit on the borrower's primary residence — a revolving credit line direct lenders price at 8-10%, up to 85% combined LTV. The most common down-payment-fuel source for investors scaling into the next acquisition. Pre-vetted direct HELOC lenders on Ask Speedy.
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HELOC terms.
| Property type | Primary residence (owner-occupied) |
| Loan range | $25,000 – $500,000+ |
| Rate range | 8–10% (variable, usually Prime + margin) |
| Max CLTV | 80–85% combined loan-to-value |
| FICO floor | 680 typical |
| Draw period | 10 years typical |
| Repayment period | 10-20 years after draw period |
| Prepayment penalty | Usually none |
| Time to close | 14-30 days |
FAQ
HELOC, answered.
What is a HELOC?
A HELOC (Home Equity Line of Credit) is a revolving credit line secured by equity in the borrower's primary residence. Unlike a home equity loan (lump sum), a HELOC is drawn as needed and re-borrowed during the draw period. Common rate range 8-10%, up to 85% combined LTV (CLTV).
How do investors use HELOCs?
HELOCs on a primary residence are frequently used as down-payment fuel for investment properties. The investor draws from the line, uses it for the next acquisition (down + closing), then pays it down from rental cash flow or after refinance. Repeat as the line is replenished.
HELOC vs cash-out refinance — which is better?
Depends. HELOC: variable rate, revolving, only pay interest on what's drawn. Cash-out refi: fixed rate, lump sum, replaces entire first mortgage. If the primary mortgage rate is locked low, HELOC preserves it. If rates are similar, cash-out can be cleaner.
Is HELOC the same as HELOAN?
No. HELOC = Home Equity Line of Credit (revolving, variable rate). HELOAN = Home Equity Loan (lump sum, fixed rate, fully amortizing). Both are second mortgages secured by primary residence equity. HELOC is more flexible; HELOAN provides rate certainty.