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KNB Capital · Loan Programs
HELOC
Home Equity Line
A flexible revolving credit line secured by your home equity. Draw what you need, when you need it — and only pay interest on what you use.
The Basics
What Is A HELOC?
A HELOC (Home Equity Line of Credit) is a revolving credit line — similar to a credit card — secured by your home equity. During the draw period (typically 10 years) you can borrow, repay, and borrow again up to your credit limit, paying interest only on what you’ve drawn.
After the draw period ends, the HELOC enters repayment where principal and interest are paid on the outstanding balance over 10–20 years. HELOCs are ideal for ongoing expenses like home renovations, college tuition, or business costs where you don’t need a lump sum.
Do You Qualify?
HELOC Requirements
Equity Required
Most lenders allow a combined LTV (CLTV) up to 85–90%. If your home is worth $700K and you owe $400K, you may qualify for a $230K line (at 90% CLTV).
Credit Score
660+ for most HELOC programs. Lenders want to see clean payment history on your existing mortgage — late payments in the past 12 months will typically disqualify.
Income Verification
Full income documentation required. DTI typically maxed at 43–45% including the HELOC’s maximum payment scenario.
Property Type
Primary residence up to 90% CLTV. Second homes typically max at 80%. Investment properties are rarely eligible for HELOCs — consider a cash-out refi instead.
Common Questions
What HELOC Clients Ask Us Most
Is A HELOC Rate Fixed Or Variable?
Most HELOCs have variable rates tied to the Prime Rate. As Prime moves, so does your HELOC rate. Some lenders offer fixed-rate draw options or the ability to lock portions of your balance at a fixed rate.
HELOC vs Cash-Out Refinance — Which Should I Choose?
HELOCs work best when you need flexible, ongoing access to funds and your current mortgage rate is already competitive. Cash-out refinances work better when you need a lump sum and want a fixed rate on your full balance.
Can I Get A HELOC On A Property I Don’t Live In?
Most traditional HELOC programs require primary or second-home occupancy. For investment properties, a cash-out refinance or DSCR loan is typically a better route to accessing equity.
Ready To Tap Your Home Equity?
We’ll show you HELOC options and compare them to a cash-out refi side by side.