Stand-Alone HELOC (Home Equity Line of Credit)

A Stand-Alone Home Equity Line of Credit (HELOC) is an adjustable mortgage that allows homeowners to tap into the equity in their property. Unlike a traditional HELOC that is typically tied to a primary mortgage, a Stand-Alone HELOC is an independent line of credit secured solely by the home’s equity. This means that homeowners can access funds without refinancing their existing mortgage. With a Stand-Alone HELOC, borrowers can borrow and repay multiple times during the draw period. This home equity product provides homeowners with the freedom to manage their finances while leveraging their property’s value.

This type of loan may be beneficial for several individuals or groups. Firstly, homeowners seeking to undertake home renovations or improvements can benefit from a Stand-Alone HELOC, as it provides a flexible and low-interest option for funding these projects. Additionally, individuals looking to consolidate high-interest debts can use a Stand-Alone HELOC to pay off existing loans, potentially saving money on interest payments. Moreover, entrepreneurs and small business owners can utilize this credit line to finance business ventures. Overall, a Stand-Alone HELOC can be advantageous for those seeking accessible and cost-effective financing options.

Key Benefits:

• Stand-Alone:
  • Behind an existing first lien
  • With no existing first lien
  • Where the existing first lien will be refinanced into a HELOC also in first lien

• Draw HELOC funds as needed

• Line amounts of $50,000-$500,000

• Maximum CLTV: 90%

• Minimum 700 FICO score

• Variable rate based on The Wall Street Journal prime rate

Available Property Types:

• Primary residences

• 1-4 unit primary properties, 1-unit second homes and investment properties

• Warrantable condominiums

• Planned Unit Developments (PUDs)

Stand-Alone HELOCs (Home Equity Lines of Credit) offer a versatile and valuable financial tool for homeowners. With their unique features, such as a separate loan from the primary mortgage, these standalone HELOCs provide borrowers with greater flexibility in managing their home equity. This product allows homeowners to tap into their home’s equity while keeping their existing mortgage intact. By accessing funds as needed and only paying interest on the amount borrowed, borrowers can use Stand-Alone HELOCs to fund various projects and expenses.

Contact our office for more information about obtaining a home equity line of credit.