r/HELOC

I have an investment property that I would like to use to buy a seasonal vacation home. Both properties are in CT.

I have a main home (with a mortgage) and 2 investment properties. 1 is paid off, worth 300k and the other has about 80k left and worth about 350K. Excellent income and credit.

Wondering which way to go, Heloc or Heloan? Pro's Con's and which investment property is better to use, the one with a small mortgage left or the one that is free and clear. Thanks.

I own my home free and clear. Worth roughly 500k. My credit history is minimal so last I checked my credit score is 600. I make amount 40-50k a year. I'm looking to borrow 60k to renovate the home to prepare it for sale. I've heard multiple different answers and was looking for advice.

I'm in the process of getting a HELOC on a condo through a credit union. I have H-06 insurance and the condo building has dwelling insurance. I just got a final condition from my lender that they want the coverage for the full principal balance of my 1st loan and the amount of the HELOC.

So currently our hazard insurance is 131k, but we owe 300k on the 1st mortgage and are taking out a 200k HELOC, thus they are asking for $500k coverage.

Is this normal? My research suggests this might be normal for a single family home, but not really for a condo that has dwelling insurance through the HOA as well as personal H-06 insurance.

Hello, new here and just looking for some help on how to move forward.

75 year old mother in Texas started a HELOC loan against her condo to afford a working AC for the brutal summers. We setup autopay & everything is going fine.

Fast forward a year or two & she has started developing some cognitive issues that we are currently getting diagnosed. I became her POA & started helping her get all her finances under control. During that process realize loan hasn’t been getting paid since August of 2025.

Once I learn this I head to the bank the next day & get with a bank specialist to pay the delinquent amount so that we can get back on track with paying her loan. She has to get her manager involved because the loan account was no longer in the bank’s database. After the manager speaks to another person outside of the bank (believe FED bank) he informs me to pay $1100 to get the loan out of delinquency & get back on track. Boom done go home breathe.

Next week, bank specialist reaches out to let me know account is being reinstated & can start making payments, but can’t do auto pay until September because of a merger. Ok cool. Whatever.

The next week learn my mother received an envelope that had a check for $1100 in it with a letter saying “insufficient funds to reinstate loan & now in default”. Reach out to bank specialist and they are as confused as I am. They look into it & two days later (Friday at 4 pm) I’m informed it is now in foreclosure.

Reach out on Monday of this week to figure out how to reinstate the loan, speaking directly with the foreclosure lawyer they assigned. Am sent an email with following amounts listed for reinstating the loan with a deadline of July 31st 2026:

Delinquent AMT: $1,200
Late fee: $55
Inspections: $170
Legal Fees: $4,555

Currently scrambling to figure out how to pay because I don’t make great monies.

Looking for any advice on reducing or removing the legal fees if possible.

Thanks in advance!

Hi, my wife and I just bought a home for 690k, and I would like to set up a heloc with an initial draw of 25k for some home improvements. The problem is we both started our own businesses and so don’t have w2 income. Given our nearly 700k equity in our home, and one have any recommendations for lenders that might work for us?

Thank you!

Hi! I’m looking to do a HELOC or equity loan to pay off an existing heloc (177k) and pay off private student loans/credit card debt. Total initial draw 300k
Home value is $1 mil,first mortgage is 400k. Looking to get 350k on loan so there’s wiggle room if needed.

My question is first mortgage is in my husband’s name only. I’m on the deed but not the original loan. Can I get approved without him being on the HELOC? He’s aware of all this so I’m not trying to hide,just looking to see if I can carry the second without him. Or since the first is in his name is he required to be on the second line?

I owe 205,000 on my home. I’m not sure how much it’ll appraise for, let’s say 425,000. I was thinking of getting a HELOC to consolidate debt & a home improvement project (approx 100k).

The loan advisor suggested doing a HELOC for 150,000. I’m nervous about that amount. Is that too high?

If I do the HELOC (by paying off my debt) I’ll be saving close to 1,000/month.

Hi just seeking some advice, we bought a home in October of 2025 new built and when appraised the approved came back to 515k and we purchased it for 362k (way under value). We owe 353k would I be able to get an equity loan? We have 2 auto loans and pay over 2k a month and I wanted to consolidate those and some debt on credit cards.

I want to take out a heloc to purchase an investment property. The rate my mortgage broker showed me was 8.5% fixed or variable (they are somehow the same). Is that normal? Sounds high to me tbh. I’m in NY looking to purchase sometime soon in Jersey. What kind of fees should I expect as well. There were like 5k in fees. Sounds too high to me. For reference, I own a 500k investment property paid off and I want to get a 300-350k heloc. EDIT over 800 credit score, 150k income, 1.4m primary residence property 85% paid off

Hello everyone!

I’m almost done paying off my mortgage (primary home 15K left). I am considering buying 2nd home as a rental property.

I do not have any other loans aside from the 15K, my credit score is 816, a good credit score.

I was thinking maybe I can get a HELOC loan and use it to buy my 1st rental property.

I’m reaching out for any suggestions you all might have, perhaps a HELOC loan is not a good idea. I am all ears for any suggestions.

How would you handle it.

Thank you all for your suggestions!

I own a home that my BIL rents for just the mortgage payment. I owe 78k and have never refinanced or heloc'd. I want to do some repairs, but most don't cover rentals. Suggestions?

My wife is not working. About 12k in CC debt. I have a decent credit score at about 700, and we have about 200k in equity in our house. We aren't drowning, and I make enough to pay bills with very little extra. But I want to consolidate our CCs and start our emergency fund.

For recap:

60k AGI (300k Gross)

785 Credit

Self Employed

Revolving monthly credit card usage 15-20k paid in full monthly

Home value 413k (balance of 215k)

BOFA: ⛔️

LOCAL CREDIT UNION: ⛔️

Checked out Achieve-----

They are offering 70k at a fixed rate of 9%

5 year draw 30 year pay off. They however are only allowing full withdrawl of the 70 and can return needed funds to lower monthly.

9% fixed seems way too high honestly

planning some upcoming renovations and trying to figure out the right way to finance it. i know i need to apply for home improvement loan but i am trying to decide if tapping into equity with a heloc is smarter than just getting a standard fixed personal loan.

with rates where they are right now, a variable line of credit feels a bit risky but the flexibility is nice. for anyone who used a heloc for renovations recently, did you find the approval process smoother through a local credit union or a major national bank?

I am currently looking for roof replacement. My brother used HELOC with his house improvements. With this be applicable for me too? If so, i 'd like to shop around.

I have been trying to fix my credit score. And now it has moved up to 600’s. Depending on which credit bureau you are going to check it lies between 620-670. Credit card balances have been paid and up to date. But due to previous late payments and delinquencies I was denied just now with a local credit union.

Home equity around $300,000
Annual Salary $180,000

The purpose for the heloc would be for home renovation. Any advice / recommendation where to apply since the credit union declined me? I see a lot of online lending like FIGURE but i dont know if they are reputable or if you have any experience with them.

Or is it worth applying for a personal loan?
Thank you.

They’re currently offering a 5.49% introductory rate for the first 12 months, which really stood out to me. On top of that:

• Prime – 0.250% thereafter (760+ credit score)
• No closing costs up to $250K
• Competitive options even for rental properties (+0.250%)

If you’re considering a HELOC, please call James Go at 669-275-5452.

Need advice: $90k CC debt, substantial home equity, trying to preserve 2.85% mortgage

My wife and I are trying to climb out of a hole after several years of startup jobs and an attempted business venture that didn't work out. We depleted our savings and accumulated about $90k of credit card debt.

I started a stable W-2 job in September 2025 earning $185k/year, and my take-home pay is about $11,200/month. My wife stays home with our four kids (all public school age), though we're both looking for ways to generate additional income. We live 20 minutes outside Boston.

House:
Bought early 2021 for $1.1M
Estimated value today: $1.3M-$1.4M
Mortgage balance: ~$648k
30-year fixed at 2.85%

Credit:
We had upper-700 scores for 15+ years.
During a rough stretch in April-June 2025 we had several 30-day late payments.
We've been current on every account since July 2025 and scores have recovered into the mid-600s.

Current debts:
~$90k total credit card balances.
About $2,600/month in minimum payments.
Mortgage payment (including taxes) is $4,045.
One car loan has two payments remaining, then no auto debt.

The biggest challenge is cash flow. We are current on everything, but after the mortgage and card payments there isn't much left for a family of six.

We are willing to do whatever it takes and are not trying to avoid responsibility. We just don't want to lose our 2.85% mortgage and would love to find a way to use some of our equity to refinance the credit cards.

Questions:
Has anyone obtained a HELOC or home equity loan with scores in the mid-600s and older late payments?
Are there lenders that are more flexible with strong equity and stable income?
Would you pursue a HELOC, fixed-rate second mortgage, or something else?
Any success stories from people who dug out of a similar situation?

Constructive advice appreciated. We know we made mistakes and are trying to fix them.

Is this allowed. I'm seeing differing guidance on this. I don't see why they'd want to lose a customer and fees by letting you go elsewhere.