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HELOC Mortgage Loan Highlights

• Property types allowed: HELOC programs typically allow borrowers to use their primary residence as collateral. However, some programs may allow a second home or investment property as collateral as well.
• Maximum Loan-to-Value (LTV) ratio: HELOC programs typically have a maximum CLTV ratio of 80-95%, depending on the program guidelines.
• Interest rates: HELOCs often have variable interest rates, which means the rate can fluctuate over time. The interest rate is typically tied to a benchmark rate, such as the prime rate, plus a margin.
• Repayment terms: HELOCs usually have a draw period (typically 10 years), during which borrowers can access the line of credit and make interest-only payments. After the draw period ends, borrowers must start repaying the principal and interest, usually over a 10-20 year repayment period.
• Fees: HELOCs may have fees, such as an application fee, origination fee, and annual fee.
• Credit score requirements: HELOC programs typically require a good credit score, but can go as low as 600.

In summary, borrowers should understand the property types allowed, maximum LTV ratio, interest rates, repayment terms, fees, and credit score requirements before considering a HELOC. It's important to shop around and compare offers from different lenders to find the best deal.