What it is.
A home equity line of credit lets you borrow against the equity in your home. When used as a second mortgage, it leaves your existing first mortgage in place. This program starts with a full draw of your approved credit limit into a fixed-rate repayment plan. As you pay down principal, you can borrow again during the available draw period, subject to account terms.
Think of the borrowing limit like a credit card.
You have a credit limit, a balance you owe, and available credit. Paying back principal opens up room to borrow again during the draw period, subject to the account terms. Unlike a typical credit card, your home secures this debt, and this program requires the full line to be drawn at opening.
A simple example
Suppose you open a $100,000 line. This program initially draws the full $100,000. If you later repay $60,000 of principal, you have a $40,000 principal balance and up to $60,000 available to borrow again during the draw period. A later $10,000 draw would bring the principal balance to $50,000 and available credit to $50,000.
You repay what you owe—not the unused portion of your credit limit. If you fully pay off all balances, accrued interest, and fees, no payment is due until you borrow again or a new charge is incurred. A partial paydown does not necessarily reduce an existing fixed monthly payment automatically; an eligible recast may be needed.
Illustration only. Figures exclude interest and fees. Future access is subject to account terms and renewal; a line can be reduced or suspended.
Quick numbers.
Combined LTV (CLTV) includes your existing mortgage plus the proposed HELOC limit. This is equity access on a home you already own, not a purchase down-payment program.
| Occupancy / credit tier | Maximum CLTV | Maximum line |
|---|---|---|
| Primary home · 700+ | 89% | $100,000 |
| Primary home · 680–699 | 85% | $100,000 |
| Primary home · 700–739 | 85% | $300,000 |
| Primary home · 740+ | 85% | $400,000 |
| Primary home · 680–699 | 80% | $200,000 |
| Primary home · 620–679 | 75% | $150,000 |
| Primary home · 760+ higher-limit option | 80% | $1,000,000 |
| Investment / second home · higher credit tier (720+) | 75% | $250,000 |
| Investment / second home · lower eligible credit tier | 70% | $100,000 |
Each row is a separate tier—not features to mix together. Investment/second homes require 12 months of ownership. Income, debt-to-income ratio, valuation, credit, and property eligibility still apply; higher-limit loans have additional requirements.
Purchase: Not the purchase mortgage. Rate-and-term refinance: A separate transaction if replacing a loan. Cash access: This HELOC can retain your first mortgage; it is different from replacing it with a cash-out refinance. The reviewed offering requires a full initial draw.