Home equity line of credit
A home equity line of credit (HELOC): borrow against your home as you need it.
A HELOC lets you borrow against your home’s equity up to a set limit, draw what you need during a draw period, repay and draw again, and pay interest only on what you have drawn. Here is how it works, who it suits, what the programs ask for, and a calculator that shows what you may be eligible for.
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- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
What would you like to do?
Pick the one closest to you. A few short questions follow, and a licensed loan officer gets back to you.
- See what line I may be eligible for
- Get a quote on a line of credit
- Compare it with a fixed-rate second mortgage
Ready for the full application? Apply online
Fidelity Residential · NMLS #103098 · Equal Housing Lender
- Direct, licensed lenderNMLS #103098. Check our licences on NMLS Consumer Access.
- A licensed loan officerA real person reviews your file and answers your questions.
- Several line-of-credit programsWe compare programs to find the rules that fit your home and your credit.
- Your first mortgage staysA line sits behind the mortgage you have, which stays exactly as it is.
The basics
What a home equity line of credit is
A home equity line of credit, or HELOC, is a line you borrow against as you need it, up to a limit set from the equity in your home. During the draw period you can draw, repay and draw again, and the required payment covers only the interest on what you have drawn. When the draw period ends, a repayment period begins and the balance is paid down with interest over the remaining years.
The rate is variable and moves with a published index, so your payment can change. A line can sit behind your existing first mortgage, which stays as it is, or be a first lien on a home you own outright. It can be opened on its own, or at the same closing as a new first mortgage on a purchase or refinance.
Most programs ask for a large first draw at closing, often three-quarters of the line. If you want one lump sum at a rate that does not change, see the fixed-rate second mortgage instead.
Who it suits
- Homeowners who want to keep their first mortgage and borrow against the equity behind it
- Costs that come in stages, such as a renovation paid as the work is done, where you draw as you go
- A primary residence, a second home and, in some programs, a rental property; a line on a rental may be a business-purpose loan
- Buyers who want a line at the same closing as a new first mortgage, or soon after buying: some programs need no ownership seasoning
Not for manufactured homes. If you would rather replace your first mortgage with a larger one, see the cash-out refinance.
Home equity lines of credit at a glance
- What it is: a revolving line against your home’s equity; draw, repay and draw again during the draw period, with interest only on what is drawn, then a repayment period.
- The rate: variable, moving with a published index; no figure is quoted on this page.
- Where it sits: behind your existing first mortgage, which stays as it is, or in first position on a home you own outright; opened on its own or at the same closing as a new first mortgage.
- Draw and term: draw periods of up to ten years and total terms of up to thirty years are available; most programs ask for a large first draw at closing.
- The home: a primary residence, a second home and, in some programs, a rental property; not a manufactured home.
- Income: documented the usual way, with pay stubs, W-2s or tax returns; some programs use payroll or bank data links; one lets retirement-type assets count as income. The calculator below shows what these answers may support.
How it works
How a home equity line of credit works
The limit is set from your equity
The lender looks at what the home is worth, what is owed on it, your credit and your income, and sets the line. Some lines need no appraisal: an automated valuation is enough on smaller lines, while larger lines and piggybacks get a full appraisal.
You draw during the draw period
Most programs require a large first draw at closing, often three-quarters of the line. After that you draw what you need, repay it and draw again. Draw periods of up to ten years are available.
Interest only on what you have drawn
During the draw period the required monthly payment covers the interest on your balance. Because the rate is variable, that payment moves with the index.
The repayment period
When the draw period ends you can no longer draw, and the balance is repaid with interest over the remaining years. Total terms of up to thirty years are available. No prepayment penalty at the programs we read.
Requirements
HELOC requirements: what the programs ask for
In words, not numbers: each program sets its own figures, and the calculator below works them out for your answers.
- Credit: scores in the mid-600s can fit smaller lines, with larger lines and higher borrowing limits for stronger credit
- Line amounts: from the tens of thousands up to one million dollars, within each program’s limit on the share of the home’s value that all loans against it may reach
- Income: documented the usual way, with pay stubs, W-2s or tax returns; some programs can use payroll or bank data links, and one lets retirement-type assets count as income. There is no bank-statement or 1099-only line
- The home: a primary residence, a second home or, in some programs, a rental; a house, condominium, townhome or small multi-unit property; not a manufactured home
- Ownership: no ownership seasoning in some programs, so you can open a line soon after buying
- Valuation: some lines need no appraisal, an automated valuation being enough on smaller lines; larger lines and piggybacks get a full appraisal
- Co-borrowers and residency: a non-occupant co-borrower can help in some programs, with stronger credit and a lower limit; permanent residents, visa holders and DACA recipients with a Social Security number may be eligible
- Where: available in the states where Fidelity Residential is licensed, with Texas lines subject to Texas’s own home-equity rules
Timing. One program we work with says it can close a standalone line “in as few as five business days”; piggybacks and larger lines take longer. That is the program’s own statement, not a promise, and every file depends on its documents.
Rental property
Lines of credit on a rental property
A line on a rental property is a business-purpose loan, so we can state the terms the programs we work with publish for it. Each figure below is one program’s own term; no two are combined into one line. Figures as read on 11 October 2026 from the program documents on file; they expire on 11 November 2026 unless reviewed.
| Term | The most lenient program offers |
|---|---|
| Share of value borrowed, all loans combined | Up to 80% of value with a credit score of 680 or higher, on one to four units, for lines from $50,000 to $250,000 (from a program chart dated October 2024, which stands until a current one arrives) |
| Credit score | From 660, at up to 60% of value |
| Line size | Up to $1,000,000 on a one-unit rental with a score of 720 or higher at up to 70% of value, with debts within 43% of income; lines to $500,000 with debts up to 50% of income |
| Draw and term | A draw period of up to 10 years and a total term of up to 30 years; another program’s rental line has a 5-year draw and a 10-year term |
| Income | Pay stubs, W-2s or tax returns, or retirement-type assets counted as income; no line is underwritten on the property’s rent alone |
| Lien position | Behind your existing mortgage, in first position on a rental owned outright, or at the same closing as a new first mortgage |
Business-purpose loans have their own state list, which differs from our consumer list; a loan officer confirms your state. These figures are the programs’ published limits, not a rate, payment or offer, and they change when the programs change.
Calculator
Home equity eligibility calculator
One question at a time: the home, what is owed on it, the amount you have in mind, your credit and your income. The calculator works each program’s rules out on its own and shows the line you may be eligible for, with the reasons that set the figure. An estimate, not an offer or an approval.
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This calculator gives an estimate for information only, from the answers you enter, against the lending programs we work with as of the date on this page. It is not a loan application, an offer, an approval, a pre-qualification, a rate quote or a commitment to lend, and no rate, payment or fee is shown here. Each program is worked out on its own rules; terms are never combined across programs. Full underwriting reviews your credit report, income, assets, the home’s value and title, and the programs and their rules change without notice.
Questions
Common questions about home equity lines of credit
What is the difference between a HELOC and a fixed-rate second mortgage?
A HELOC is a revolving line: you draw what you need during the draw period, pay interest only on what you have drawn, and can draw again as you repay. The rate is variable. A fixed-rate second mortgage gives you one lump sum at closing, repaid in equal monthly payments at a rate that does not change. Both sit behind your first mortgage, which stays as it is.
Does my first mortgage change?
No. A line sits behind your existing first mortgage, which stays exactly as it is. If you own the home outright, the line can be in first position. If you would rather replace the first mortgage with a larger one, a cash-out refinance does that instead.
Can I open a line at the same time as I buy or refinance?
Yes. A line can be opened on its own, months or years after you bought the home, or at the same closing as a new first mortgage on a purchase or refinance, often called a piggyback. Some programs need no ownership seasoning, so a line can also be opened soon after buying.
Do I have to draw the whole line at closing?
Not the whole line, but most programs require a large first draw at closing, often three-quarters of the line. After that you draw as you need, within the draw period, and pay interest only on the balance.
Will I need an appraisal?
Some lines need no appraisal: an automated valuation is enough on smaller lines. Larger lines, lines in first position and piggybacks get a full appraisal. The program decides from the line amount and the share of the home’s value being borrowed.
Can I show my income with bank statements?
Not for a line of credit at the programs we work with. Income is documented the usual way, with pay stubs, W-2s or tax returns; some programs can use payroll or bank data links, and one lets retirement-type assets count as income. Bank statement, 1099 and profit-and-loss documentation are available on a fixed-rate second mortgage at some programs.
Is there a penalty for paying the line off early?
No prepayment penalty at the programs we read. Fees exist on some lines; your closing documents list them before you commit.
Do you lend in my state?
Lines are available in the states where Fidelity Residential is licensed, with Texas lines subject to Texas’s own home-equity rules. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999.
Ready to talk about a home equity line of credit?
Get a quote, apply online, or talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
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