Home Purchase Mortgage Calculators
Mortgage Program Calculators
We provide a comprehensive overview of a Home Equity Line of Credit (HELOC) on FREEandCLEAR. Most lenders permit a maximum combined loan-to-value (CLTV) ratio of 80% for a mortgage and HELOC. The combined loan-to-value ratio equals the principal balance of your first mortgage plus the amount of the HELOC (assuming it is fully drawn down) divided by the fair market value of your property as determined by an appraisal report. Given the 80% HELOC CLTV lending guideline it may be challenging to find a lender that offers a HELOC based on a 85% - 90% CLTV but there are some options you should explore.
You can contact lenders in your area and inquire about their HELOC programs by using the HELOC RATES function on FREEandCLEAR. Many of these lenders offer HELOCs and we frequently feature credit unions on our lender tables.
We also recommend that you contact credit unions in your area as they may have more flexible lending guidelines. Although many credit unions have membership eligibility requirements they typically offers highly competitive HELOC terms. We are aware of multiple credit unions, including PenFed Credit Union that offer HELOCs and home equity loans with a CLTV ratio up to 90%. Please note that the interest rate for a HELOC with a CLTV greater than 80% is typically higher than a HELOC with a lower CLTV.
You can also contact the banks that you have existing relationships with -- such as a checking, savings or brokerage account -- as they may offer special terms or financing options for current customers.
Please note that multiple borrower qualification factors including your monthly income and debt, credit score and employment history will determine your ability to qualify for a HELOC as well as the key loan terms (such as maximum CLTV) and interest rate offered by the lender