Get cash out without losing your rate
Home equity loans, like cash-out refinances, give you one lump sum of money, taken from your home equity. Unlike cash-out refinances, they are a second loan, which means they won’t affect your current rate.
What is a home equity loan?
A home equity loan is a type of second mortgage that lets you borrow against the equity you've built in your home while keeping your existing mortgage and interest rate. Unlike a cash-out refinance, a home equity loan does not replace your current home loan. Instead, it provides a one-time lump sum with fixed monthly payments and a fixed interest rate, making it easier to budget for large expenses. Many homeowners use a home equity loan to finance home improvements, consolidate higher-interest debt, pay for college tuition, cover emergency expenses, or fund other major life events. If you're looking for a way to access your home's equity without refinancing your first mortgage, a home equity loan may be the right solution.
Highlights
Home equity loan features
Which home equity loan is right for you?
We offer two types of Home Equity Loans: Traditional & Non-QM. The main differences between the two include 1) HOW you qualify and 2) the max amount you can take out. Compare more of the differences between the two programs below.
Traditional
A traditional home equity loan lets you qualify using typical income documentation like W-2s
$350,000
max loan amount
- Best for: W-2 earners
- Income documentation: W-2s
- Property types: primary residences & second homes
- Max equity draw: 85% CLTV
- Min credit score: 680 min
Non-QM
A Non-QM home equity loan lets you qualify using documents other than a W-2.
$750,000
max loan amount
- Best for: self-employed borrowers, contractors, investors, retirees, and other unique cases
- Income documentation: Bank statements, cash flow, ITIN, 1099s, etc.
- Property types: Primary residences, second homes, certain investment properties
- Max equity draw: 90% CLTV
- Min credit score: 680
Ways to use your home equity
- Home renovations and additions
- Debt consolidation
- Medical expenses
- College tuition
- Emergency expenses
- Real estate investing
- Major purchases
Things to consider before getting a home equity loan
A Home Equity Loan can be great for many different reasons, but it's important to keep in mind the following:
- You'll have two mortgage payments
- You need enough home equity
- The funds are not a revolving line of credit (you receive one lump sum)
- There may be closing costs
- Interest rates may be higher than your first mortgage
What's the difference between a HELOC and Home Equity Loan?
Choose a Home Equity Loan if you know exactly how much you need and prefer the stability of fixed payments and a fixed interest rate. Choose a HELOC if you want the flexibility to borrow over time, only pay interest on what you use, and have funds available for future expenses.
| Feature | Home Equity Loan | HELOC (Home Equity Line of Credit) |
|---|---|---|
| How you receive funds | One lump-sum payment at closing | Draw funds as needed during the draw period |
| Best for | One-time expenses with a known cost | Ongoing or unpredictable expenses |
| Interest rate | Typically fixed | Typically variable |
| Monthly payment | Fixed, predictable payments | Payments can change as your balance or interest rate changes |
| Borrow only what you need | No. You receive the full loan amount upfront. | Yes. Withdraw only the amount you need, when you need it. |
| Access to additional funds | No. A new loan is required to borrow more. | Yes. Continue accessing available funds during the draw period. |
| Works well for | Home renovations, debt consolidation, major purchases, tuition | Home improvement projects completed in phases, emergency expenses, ongoing projects, or having a financial safety net |
| Repayment | Begins immediately after closing with fixed monthly payments | Typically interest-only payments during the draw period, followed by principal and interest during repayment |
| Keeps your current mortgage | ✔ Yes | ✔ Yes |
How it works
- Apply for your home equity loan: We'll discuss your financial goals, review your home's equity, and help you complete your application.
- Verify your home's value: We'll determine how much equity you may be able to access by reviewing your home's value, which may include an appraisal or other approved valuation method, along with your income, credit, and finances.
- Choose the right loan option: We'll help you determine whether a traditional home equity loan or an alternative qualification (Non-QM) home equity loan is the better fit based on how you qualify, your financial situation, and your borrowing goals.
- Close on your loan: Once your loan is approved, we'll finalize your paperwork. Your home equity loan becomes a second mortgage while your existing first mortgage stays exactly as it is.
- Receive your funds: After closing, you'll receive your lump-sum funds to use for home improvements, debt consolidation, education expenses, or whatever goals matter most to you.
Frequently Asked Questions
We’re here to help! Find answers to your everyday banking questions.
A home equity loan provides a one-time lump sum with fixed monthly payments. A HELOC is a revolving line of credit that allows you to borrow as needed during the draw period.
No. A home equity loan is a second mortgage, so your existing first mortgage remains unchanged.
Borrowers who are self-employed, own investment properties, have significant tax write-offs, earn commission income, or otherwise don't qualify using traditional income documentation.
Yes. Many homeowners use home equity loans to consolidate higher-interest debt into one predictable monthly payment.
Common uses include home improvements, debt consolidation, tuition, medical expenses, major purchases, emergency expenses, and investment opportunities.