Product Description

• Term: 5-year interest only draw; 25-year repayment
• Maximum Loan Amount:
  • HELOC in 2^nd Lien Position $400,000
  • HELOC 1^st Lien Position: $400,000
• Minimum Loan Amount (1^st and 2^nd Position): $25,000

• Maximum DTI: 50%*
• Eligible Properties: SFR, 2-4 units, PUDs, Condos

Owner-Occupied

2^nd Home

Investment

Minimum FICO

Maximum CLTV

Maximum CLTV

Maximum CLTV

760+

80%

75%

70%

740-759

80%

75%

70%

720-739

80%

70%

70%

700-719

80%

70%

70%

680-699

75%

65%

N/A

660-679

70%

60%

N/A

640-659

65%

60%

N/A

Eligibility Criteria

General Application Requirements

• Co-Borrowers are permitted; must occupy the subject property and must be vested on title
• Non-Occupant Co-Borrowers are allowed – Borrower 1 must be vested on title
  • Applications dated on or after August 16^th: The occupying borrower must receive income
• Changes are allowed after the loan application is completed in certain instances by contacting Borrower Support; refer to the Standalone Digital HELOC FAQ

Credit

• Primary wage earner borrower must have a minimum 640 credit score
• Credit is valid for 90 days from the time of closing

Draw Terms and Structure

• Minimum 75% initial draw disbursed at closing
• 5-year interest-only draw period; 25-year repayment period (fully amortizing)

NOTE: Tennessee Exception: 5-year interest-only; 10-year repayment period (fully amortizing)

Eligible States

• Eligible in all states
• Brokers must be licensed in the state where the subject property is located
• Refer to the section for state specific details

Employment

• Employment verified via The Work Number, TRUV or Plaid (Third-Party Vendors)

Fees/Closing Costs

• Most fees and closing costs are netted against loan proceeds at closing
• Fees/closing costs netted against the loan proceeds include: one-time origination fee and nominal costs for credit report, loan document prep, notary, recording fees, etc.

Income

• Maximum DTI 50%

*NOTE: Loans started on or after October 1, 2024: Transactions with a FICO < 680 maximum 45% DTI

• Wage earner or self-employed income eligible
• Borrowers may validate income using one of the following options:
  • Wage Earner Borrowers:
    • The Work Number, OR
    • Link income information from employer payroll system (TRUV), OR
    • Upload two most recent paystubs and most recent W-2
  • Self-employed Borrowers:
    • Link bank account information (Plaid), OR
    • Upload prior two year’s tax returns