Unlock a Home Equity Line of Credit Today
Tap into your home's equity to access a flexible credit line with competitive rates — perfect for covering big expenses, growing your business, or managing cash flow.
Overview
A Home Equity Line of Credit lets you tap into the equity you've built in your home and turn it into a flexible, revolving line of credit. Because the line is secured by personal real estate, rates are typically well below most business-only financing options, making it one of the most cost-effective ways to fund big expenses, business growth, or ongoing cash-flow needs.
You draw what you need during a 10-year draw period and then enter a 20-year repayment period for any outstanding balance. Like any line of credit, you only pay interest on what's currently outstanding — and as you repay, your available credit is replenished automatically.
A HELOC works best for homeowners with significant equity, stable income, and a credit score of 660 or higher who want the lowest possible rate and don't mind cross-collateralizing personal and business assets.
A HELOC is typically the cheapest large-dollar capital available to a self-employed business owner — often several points below an unsecured business line of credit and dramatically below working capital. The cost savings compound: a $100,000 balance at 9% HELOC vs 22% unsecured costs $13,000 less per year in interest. Over a multi-year horizon, that's real money.
The trade-off is real and worth thinking through carefully. A HELOC puts your primary residence behind business performance. If the business struggles and you draw heavily on the HELOC, your home is the collateral. That's a risk profile some borrowers welcome (because they trust their business) and others avoid (because they want airtight separation between personal and business risk). There's no wrong answer — but it's a question to answer deliberately.
HELOC rates are typically variable, tied to Prime plus a margin (often Prime + 0.5% to Prime + 3%). Some lenders offer fixed-rate conversion options that let you lock in a portion of the balance at a fixed rate while leaving the rest revolving. Rates and terms vary by lender and borrower profile. Underwriting takes 14–30 days because the lender orders an appraisal, runs title, and pulls full income documentation. Want to compare HELOC vs. a business line of credit? Talk to an advisor at /contact or apply with assistance.
Benefits
Competitive Rates
HELOC rates are typically several points below business-only loans — the savings compound dramatically over time.
Revolving Credit
Draw, repay, and draw again during the 10-year draw period. On-demand capital with no re-application.
Leverage Existing Equity
Turn dormant home equity into productive capital for big expenses, business growth, or cash flow — without selling your home.
Who typically qualifies for a HELOC
- Credit score of 660+ (700+ for the best pricing)
- Home equity of at least 15–20% beyond the existing first mortgage
- Combined loan-to-value (CLTV) of 85% or less on most programs
- Documented income — W-2 pay stubs, 1099s, or 2 years of self-employed tax returns
- Debt-to-income (DTI) ratio of 43% or below after the new payment
- Clear title with no second-position liens already in place
- Documentation: mortgage statement, tax returns, pay stubs / 1099s, ID, recent home appraisal (lender will order)
How a HELOC closes
Apply and submit income docs
Submit a HELOC application with personal income documentation: pay stubs, W-2s or 1099s, last 2 years of tax returns, current mortgage statement.
Appraisal
Lender orders a home appraisal to confirm current market value and available equity. Most appraisals turn around in 1–2 weeks.
Underwriting
Lender pulls credit, verifies income and assets, calculates DTI and CLTV, and issues final approval — typically within 7–10 days of appraisal.
Closing
Sign HELOC documents (typically remote / in-home for HELOCs). Federal 3-day rescission period begins for owner-occupied primary residences.
Draw on demand
After rescission, the line is live. Draw funds online, by check, or by transfer up to your limit. Repay and re-draw freely during the 10-year draw period.
What you can use a HELOC for
Fund a major business investment
New location, large equipment purchase, business acquisition — when the math justifies the lowest possible cost of capital, a HELOC is hard to beat.
Consolidate higher-cost debt
Pay off credit cards, MCAs, or high-rate business loans and replace them with a single, much lower HELOC payment.
Bridge between cash events
Fund operations between a closing, a tax refund, a large customer payment, or a property sale — without selling assets early.
Down payment on commercial real estate
Use a HELOC to cover the down payment on a [commercial property](/funding-solutions/commercial-real-estate) acquisition, then refinance once stabilized.
Renovate (home or business)
Fund a home renovation or a business build-out and pay it back over the long 20-year amortization without straining monthly cash flow.
Standby liquidity
Open the line and leave it untouched as cheap emergency capital — most HELOCs have no draw fees and minimal annual fees, so unused capacity costs almost nothing.
How a HELOC compares
HELOC is cheaper, BLOC keeps personal and business separate
A HELOC is typically 5–15 points cheaper than an unsecured business line of credit — but secures the line against your home. Most owners use the BLOC for working capital and the HELOC for larger, longer-duration draws.
HELOC is more flexible, cash-out wins on rate stability
A cash-out refinance locks in a fixed rate on the entire amount immediately. A HELOC lets you draw only what you need — but rates are typically variable. Use HELOC for unpredictable need, cash-out for a single large investment.
Different lanes — combine when possible
An SBA loan finances a specific business project at competitive rates over a long term. A HELOC funds personal-credit-backed needs — including the down payment or owner equity for an SBA deal.
Frequently Asked Questions
Quick answers to the questions we hear most often.
How much can I borrow with a HELOC?+
Are HELOC rates fixed or variable?+
Can I use a HELOC for business purposes?+
How long does a HELOC take to close?+
What happens at the end of the 10-year draw period?+
What are the risks of using a HELOC for business?+
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