Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is line of credit that allows homeowners to borrow money against the equity in their home. It works somewhat like a credit card, where you have a predetermined credit limit, and you can borrow against it as needed, repay, and borrow again up to the limit during the draw period.
Although HELOCs often have a variable interest rate, Waterstone Mortgage also offers the unique fixed-rate HELOC. With a fixed-rate HELOC, the full amount is drawn at closing. As you repay the balance on the line of credit throughout the draw period, you may make additional draws with a fixed interest rate.
Additionally, we offer a renovation HELOC program, which uses the after-renovation value (ARV) of your home to determine how much you can borrow. This increases your borrowing power.
benefits of choosing a HELOC
You have a few options for accessing your home’s equity, but a home equity line of credit offers a few unique benefits.
- Fast Access to Funds: Our HELOC program typically offers quicker approval and funding process compared to a refinance, which can be beneficial if you need the money urgently.
- Flexible Funding: With a fixed-rate* HELOC, you get the best of both worlds — a fixed interest rate, and access to a line of credit you can draw from repeatedly over the course of your draw period.
- No Impact on First Mortgage: A HELOC allows you to borrow money against your equity without impacting your existing mortgage. This may be preferable if you have a low interest rate on your primary mortgage that you want to retain.
about Waterstone Mortgage’s
HELOC programs
Traditional HELOC
- Lines of credit up to $750,000
- Up to 90% combined loan‑to‑value (CLTV) ratio
- Up to 95% CLTV available in certain states*
- As low as 640 FICO
- Available with 1–2-unit primary homes, 1-unit second homes, and 1–4-unit investment properties
Fixed-Rate HELOC
- HELOC minimum of $25,000 and up to $400,000 — contact your loan originator for details
- Available with primary residences with as low as 640 FICO
- Available with second homes and investment properties with as low as 680 FICO
- Fixed interest rate repayment term options for 5, 10, 15, or 30 years — contact your loan originator for details
Renovation HELOC
- 90% ARV (95% ARV in select states — contact your loan originator for details)
- Loan amounts up to $500,000
- FICO as low as 640
- Available on primary or second homes
*Only available in CT, ME, MA, NH, RI, VT.
Traditional HELOC and renovation HELOC programs are available through a broker relationship with other lenders. Waterstone Mortgage is not affiliated with those lenders. Credit approval is at the sole discretion of the lender. Customer should consult with their tax professional for tax implications.
**The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature If the customer 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.
Geographical restrictions apply, contact your mortgage loan professional for additional information. Some programs may be available through a broker relationship with other lenders. Waterstone Mortgage is not affiliated with those lenders. Credit approval is at the sole discretion of the lender. Consult a tax advisor for questions about tax and government benefit implications.
