Buying a home is rarely the last time a homeowner needs access to money. A few years after closing, you may face a kitchen renovation, a college tuition bill, an investment opportunity, or a slow quarter as a self-employed borrower.
The Wealth Builder HELOC is for buyers who expect their financial needs to continue after moving in. It is a first-lien HELOC that can finance the purchase and remain open for up to 360 months. Instead of applying for a separate home equity loan or second mortgage later, qualified borrowers can return to the revolving line of credit they already have.
A 30-Year Draw Period
The draw period lasts for the entire 360-month loan term. The credit limit remains fixed for the first 120 months. Beginning after that period, the credit limit gradually steps down by 1/240 each month through month 360. Unlike other HELOCs with a shorter draw period followed by a separate repayment period, our HELOC provides long-term access to available credit throughout the loan.
Pay Down the Principal and Restore Available Credit
Our HELOC functions as a revolving line of credit. When borrowers repay principal, that portion of the line generally becomes available to use again, subject to the remaining credit limit and loan terms. This option allows homeowners to borrow when a need arises, repay the balance, and potentially access the line again later. Interest is generally based on the outstanding balance, not the entire approved credit line.
Future Borrowing Capacity Is Considered Upfront
The borrower is qualified using the payment calculated on the full line amount, amortized over 30 years at the qualifying rate, not simply the amount drawn at closing. This lets us evaluate the full credit line when the loan is originated. As a result, the borrower does not ordinarily need to submit an entirely new mortgage application every time funds are drawn from the available line. Future draws remain subject to the loan agreement, available credit limit, and applicable account conditions.
No Separate Second Mortgage to Arrange Later
This product does not permit subordinate financing. The reason is straightforward: the first-lien HELOC already provides long-term equity access. Rather than keeping a traditional first mortgage and later applying for a separate second mortgage or HELOC, the borrower starts with a first-lien revolving line designed to provide ongoing access to available equity.
HELOC Purchase Highlights
- Up to 90% loan-to-value for loan amounts up to $1.5 million
- Up to 85% loan-to-value for loan amounts up to $2 million
- Available for eligible primary residences, second homes, and investment properties
- Borrowers may draw up to 99% of the credit line at closing
- Borrowers must contribute at least 10% of their own funds
- Gift funds are permitted
- Buy Before You Sell transactions are eligible
- As many as three HELOCs permitted, one per occupancy type
- Up to $3.5 million in combined financing
Contact us to learn whether a first-lien HELOC may fit your purchase plans and long-term financial needs.
