How Much Can I Borrow With a HELOC?

The maximum a borrower can get with a HELOC* through Rate is $750,000**. Of course, how much you can qualify to borrow with a HELOC is based on your home equity, remaining home mortgage and financial situation. 

A HELOC, or home equity line of credit, allows you to access your home’s value without selling your property. This makes HELOCs a great resource for anyone looking to access funds for any expenses they may have.  

To find out exactly how much you could borrow with a HELOC, complete your HELOC application today. 

There are two types of HELOCs: one with a line of credit and one with a lump-sum.  

A traditional HELOC opens a line of credit based on your home equity. You can draw on this line of credit as you need funds, similar to a credit card, and those funds can be used for any expenses you may have.  

While you make draws on your HELOC, you only need to worry about paying interest on your loan amount. After your draw period ends, you will have to pay back the interest and principal on your HELOC and will no longer have access to the line of credit, even if you didn’t use it all. 

Rate’s HELOC option gives you your total loan amount up front. While you pay that amount back, you will have the option to make additional draws on your loan amount, giving you access to your total loan amount. 

The biggest factors in determining how much you can borrow with a HELOC are your current home’s value and the remainder of your mortgage balance. 

The most accurate way you can find out your current home’s value is by getting a home appraisal. When determining your home’s value, a professional appraiser will look at the condition and specifics of your home as well as looking at recent sale prices of similar properties in your area. A professional home appraisal usually will be required when you apply for your HELOC. 

If you are looking for an estimated home value, you can explore home values using an online home valuation calculator. These tools can give you an idea of what your home is worth based on similar properties in the area. 

After home value, the other major factor when determining the amount you can borrow with your HELOC is your remaining mortgage balance. The difference between these two factors will help you show home much of the value of your home you own, which will determine your potential HELOC amount.  

If you do not have a home mortgage, you can still qualify for a HELOC. 

There are some other factors that your lender will look at when deciding how much of your owned value you can access. Make sure you talk with your lender and find out what other factors they consider. 

The amount you can borrow with a HELOC is based on your home equity, or the difference between your mortgage balance and home value.  

To see how much equity you have, subtract your remaining mortgage balance from your home’s current value. Of course, this is just the total amount of equity you own. You will only be able to access a portion of it through a HELOC. Depending on your lender, you can access up to 90% of your home equity through a HELOC. 

You can use a HELOC calculator to get an idea of how much you could borrow with your HELOC. 

Some things you will need to help qualify for a HELOC are: 

• Minimum credit score of 640 

• Maximum debt-to-income ratio of 50% 

• At least 15% equity in your home 

Of course, each lender can vary slightly in their qualifications for a HELOC. 

To apply for a HELOC, you can start your application online and from the comfort of your home. 

Online applications with Rate can be completed in as little as five minutes and give you access to your funds in as soon as five days***. Our online applications connect you with a trusted Loan Officer who can answer questions you may have and help you through the application process. 

When approved for a HELOC, you will have access to your funds for whatever expense you may have, including home renovations, consolidating debt or helping to cover major expenses like tuition. 

To begin the HELOC process and gain access to funds based on your home equity, apply for a HELOC today! 

_{*Rate home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Rate for more information and to discuss your individual circumstances. Restrictions Apply.} 

_{** Our loan amounts range from a minimum of $25,000 to a maximum of $750,000. For properties located in AK, the minimum loan amount is $25,001. Your maximum loan amount may be lower than $750,000 and will ultimately depend on your home value and equity at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.} 

_{***Applications may be completed in five minutes but may fluctuate. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and may need to order a desktop appraisal to confirm the value of your property. Texas borrowers will have a 12-day cooling period prior to closing on their home equity loan which will begin after the borrower has both filed a loan application and received consumer disclosures.}