A Line of Credit Against the Equity You Already Have
A HELOC is a revolving line secured by your property. You draw from it as you need it rather than taking one lump sum, and you pay interest only on what you have actually drawn.
Scope. Available in California only, whether the property is the home you live in or an investment property.
Your existing first mortgage stays exactly where it is. The line sits behind it. If you locked a good rate years ago, you keep it.
At a glance
- Structure
- Revolving line
- Combined loan-to-value
- 90%
- Scope
- California only
- Lender panel
- 20+
Scope. Available in California only, whether the property is the home you live in or an investment property.Work out the available line
Who this fits
You are renovating in stages and do not want to borrow it all on day one
You are consolidating higher-cost debt but want to keep flexibility
You run a business and want capital standing by rather than drawn down
You have an expense that arrives in pieces — tuition, medical costs, a family obligation
You are using equity in one property to fund the down payment on the next
You have a first mortgage worth protecting and do not want to refinance it
Who this does not fit
You need one fixed sum and want a predictable payment. Most HELOC rates move, so your payment can move with them. A home equity loan or a cash-out refinance gives you certainty instead.
You have thin equity. There is a ceiling on your total borrowing against the property, so limited equity produces a line too small to be worth the closing costs.
Your income is unstable and a higher payment would hurt. This is a lien against your home. That risk deserves a straight answer, not a sales pitch.
The property is outside California. HELOC placement is California only, whether the property is your home or a rental.
How qualification works
Your equity
We look at your equity first — your existing mortgage balance plus the new line, measured against the appraised value. That sets the ceiling on the line, and ours is 90% combined loan-to-value.
Then income, debt, and credit
Then income and debt. Most HELOCs are full-documentation. Then credit, which carries the highest bar of anything we place.
What you will need
About you
- Credit report.
- Income documentation — W-2s, pay stubs, tax returns, or business documentation if you are self-employed.
- Your current mortgage statement.
About the property
- Insurance declaration.
- Property tax statement and HOA information if applicable.
- A valuation, which may be a full appraisal or a lighter method depending on the line size.
- Title work.
The honest trade-offs
The flexibility is real.
Draw what you need, repay it, draw again.
Two things borrowers routinely get caught by, so we say them plainly
The rate usually moves.
Your payment can rise.
The draw period ends.
After 3 to 5 years the line stops revolving and converts to repayment over 20 to 30 years — and the payment typically jumps at that point.
Know the date before you sign.
Beyond that
The lender can reduce or freeze the line if values or your profile deteriorate.
Some programs carry annual or early-closure fees.
It is secured by your home, which is the whole reason the terms are as good as they are.
LTV & Cash-Out Calculator
Work out the available line
Property value against the 90% ceiling, less what you still owe on the first mortgage.
Projected combined LTV
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Fill in the property value, the existing liens and the cash-out you want. The LTV updates as you type.
- Property value
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- Existing liens
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- Requested cash-out
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- Equity left
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- Projected combined balance
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For illustrative and educational purposes only. Results produced by this calculator perform arithmetic based solely on numbers you enter and do not reflect actual loan offers, interest rate quotes, or commitments to lend. Actual loan terms, payments, interest rates, and approval depend on complete underwriting, credit review, property valuation, and lender guidelines. Loankey.io arranges loans through third-party lenders; loans are not funded directly by Loankey.io.
Process and timeline
Before you proceed
Scenario analysis.
Current value, current balance, and what the money is for.
Lender analysis.
Placed from a panel of 20+ lenders.
Application to signing
- Application
- Valuation
- Title
- Underwriting
- Signing
Application, valuation, title, underwriting, signing. Typically 10 to 30 days. Owner-occupied transactions include a federally required three-day waiting period after signing before funds are available. Timelines are typical, never promised.
Frequently Asked Questions
How much can I borrow?
Your property's value multiplied by the ceiling — 90% combined loan-to-value — minus what you still owe on your first mortgage. The calculator above works it out on your own numbers.
Do I pay interest on the whole line?
No. Only on what you have actually drawn. An undrawn line costs you nothing in interest.
Is the rate fixed?
Usually variable, which means your payment can move. A fixed-rate lock on part of the balance is available on some programs — ours is optional.
What is a draw period?
The opening years when you can borrow, repay, and borrow again. Ours runs 3 to 5 years.
What happens when the draw period ends?
The line stops revolving and converts to repayment over 20 to 30 years. The payment usually increases significantly at that point. More borrowers are caught out by this than by anything else in the product, so know the date before you sign.
Can the lender reduce or freeze my line?
Yes, if property values fall or your financial profile deteriorates. It is uncommon but it is real, and it tends to happen exactly when you most want the money.
What credit score do I need?
620. HELOCs carry the highest credit bar of anything we place, because the lender sits behind your first mortgage.
Is there a reduced-documentation HELOC?
Yes. Bank statement and DSCR HELOCs are available.
How is this different from a cash-out refinance?
A refinance replaces your existing mortgage with a larger one and hands you a lump sum. A HELOC leaves your first mortgage untouched and adds a flexible line behind it. If you have a first mortgage on good terms, that difference usually decides it. See Cash-Out Refinance.
How is it different from a home equity loan?
A home equity loan is one fixed sum with a fixed payment. A HELOC is a revolving line with a variable rate. Certainty versus flexibility. Yes, we place closed-end second mortgages as well.
Can I get one on a rental property?
Yes. Note that HELOC placement is California only, whether the property is owner-occupied or a rental.
Will I need a full appraisal?
Not always. Smaller lines can sometimes use a drive-by or an automated valuation, which is quicker and cheaper.
Are there ongoing fees?
Some programs carry an annual fee or a fee for closing the line early. We will show you the full cost before you commit — not after.
What can I use the money for?
Anything. Renovations, debt consolidation, a down payment on another property, tuition, business capital. The lender does not restrict the use.
What is the risk I should be clearest about?
It is secured by your home. That is why the terms are better than an unsecured loan, and it is why a payment you cannot sustain is a serious problem rather than an inconvenience.
How long does it take?
Typically 10 to 30 days. Owner-occupied transactions include a federally required three-day waiting period after signing before funds are available.
What happens next
If the line funds a rental
If the line is funding the down payment on a rental, this is how the rental itself gets financed.
If the line is seeding a build rather than a renovation.
You are here
HELOC
A flexible line behind the first mortgage.
If you need a fixed sum
One fixed sum instead of a revolving line, if your first mortgage is not worth protecting.
A fixed second, if you want a predictable payment.
Request a Scenario Analysis
Send the current value, the balance on your first mortgage, and what the money is for. You will get a read on the available line and whether a HELOC or a fixed second suits it better.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.