What is a Home Equity Loan?

A Home Equity Loan allows you to borrow a lump sum of cash using the equity in your home as collateral.

• • • Low interest rates: Typically lower than personal or unsecured loans.

    • Access to emergency funds: Useful for home remodeling, education expenses, business funding, paying off high-interest credit card or personal debt, and more.

What is Equity?

Equity  =  Current Home Value  −  Remaining Mortgage Balance

Example):

• • • Current Home Value: $800,000

    • Remaining Mortgage Balance: $500,000

    • → Equity: $300,000

    • → Loanable Amount: Typically up to 80~90% 

Two Types of Home Equity Loan:

• • • Home Equity Loan (HELoan):  A lump-sum loan disbursed at once
    • Home Equity Line Of Credit (HELOC 힐락):  Revolving line of credit; as you repay, you can borrow again — terms vary by program

HELoan vs. HELOC 

Category	HELoan (Home Equity Loan)	HELOC (Home Equity Line Of Credit)
Loan Structure	Lump-sum disbursement	Withdraw as needed within a credit limit
Interest Rate	Fixed rate	Fixed, or Variable rate
Repayment	Monthly principal + interest	Monthly principal + interest, or interest-only during draw period
Best For	One-time large expenses (e.g., remodeling, debt consolidation)	Flexible use over time (e.g., tuition, emergency funds)
Loan Term	Typically 5–30 years	5–30 years (draw period is separately defined)
Collateral	Residential	Residential
Loan Amount	Up to 75–90% of home equity	Up to 75–90% of home equity
Reusability	Not reusable (lump sum only)	Reusable — borrow again as you repay

Eligibility Requirements

• • • You must have sufficient equity in your home.

    • Approval is based on credit score, income, debt-to-income ratio, and other financial qualifications

    • Income Verification:

      • • • • • • • Tax returns
                  • Self-employed or 1099:     If reported income on tax return is low, some lender may use 12-24 months of business bank statements, or CPA-prepared P&L, balance sheet
                  • Investment rental properties:   Rental income can be used to qualify without tax returns
                  • No-income-verification programs: Available, but the rates are higher compared to other programs

Inquiry:     

 We offer over 70 different Home Equity Loan programs.  Contact us, and we’ll help you find the Home Equity Loan that best fits your individual needs.