HELOC: the cash you need, in days not weeks
A home equity line of credit built for real deadlines — tuition due, a contractor waiting, high-interest debt you want gone. Have funds in hand in as few as 5 days.
HELOC requirements
Property types: single-family, townhomes, condos, multi-family
Minimum credit score: 600
Borrow limit: $25,000 to $750,000
Debt-to-income ratio: 50% or less
If you meet these requirements, you can be funded in as little as a few days — without the document chase a cash-out refinance requires.
Why choose a HELOC?
Money in days, not weeks
A HELOC connects to your accounts electronically, estimates your home’s value from market data instead of sending an appraiser out, and usually funds in as little as 5 days.
Keep the mortgage you already have
If you locked a low rate years ago, refinancing means giving it up to reach your equity. A HELOC sits alongside your existing mortgage. Your first loan, and the rate on it, stays exactly where it is.
Borrow for something specific
This isn't a rainy-day fund. It's capital for a defined need: consolidating credit card debt at a lower rate, covering a tuition bill, paying a contractor. You draw at least 75% at closing and start putting it to work immediately.
How it works
Check your rate in minutes
Answer a few questions about your home and what you need the money for. No document upload to start.
Check how much you can borrow
You can borrow up to 90% of your home’s value, minus what you still owe on your mortgage. Your exact limit depends on your credit score, property type and how you use the home. For example, on a $600,000 home with $350,000 owed, your line could be up to $190,000.
Connect your accounts
Income and employment verify electronically. If that doesn't work for your situation, you can upload documents instead.
Usually no home visit
For most borrowers, we estimate your home’s value from market data instead of sending an appraiser out, so nothing waits on someone else’s calendar. If you’re borrowing a larger amount, a full appraisal is required.
Sign and get funded
Sign your documents, then federal law gives you three business days to change your mind. Your funds are disbursed once that window closes, typically 4-5 days from signing. Some states require a longer wait.
HELOC vs. refinance
| Compare | HELOC | Cash-out refinance | VA cash-out refinance | Rate-and-term refinance |
|---|---|---|---|---|
| Best for | A specific, near-term need when you want to keep your current mortgage | A large sum when you're also willing to replace your mortgage | Veterans who need cash and want to reach the most equity | Lowering your rate or payment, when you don’t need cash |
| Your existing mortgage | Stays exactly as it is | Replaced with a new loan at today's rate | Replaced with a new VA loan at today’s rate | Replaced with a new loan at today’s rate |
| Speed to funds | As few as 5 days | 12 to 25 days | About 25 days | 12 to 21 days |
| How much you can get | Up to 90% of your home’s value less what you owe, from $25,000 to $750,000 | Up to 80% of your home’s value less what you owe (90% with a VA loan) | Up to 90% of your home’s value less what you owe, with a $500,000 cash maximum | No cash — you’re replacing the loan, not adding to it |
| Payment structure | Varies by the term you choose; interest-only and fully amortizing options | Fixed payment from day one | Fixed payment from day one | Fixed payment from day one |
| Minimum credit score | 600 | 620 | 620 | 620 |
What people use it for
Consolidating high-interest debt
Credit card rates run well above HELOC rates. Moving balances onto your HELOC can cut what you pay each month, and debt consolidation is permitted here specifically to bring your DTI down.
Renovation and construction
Contractors want a deposit before work starts. This funds fast enough that you don’t lose your spot in their schedule.
A specific bill you need covered
Medical costs, a tax bill, a business need. If you know the number and the deadline, this is built for it.
How to qualify
Credit score
600 is the minimum. Above that, your score shapes the rest of the offer — how much you can borrow against your home, how much existing debt you can carry, and your rate. Around 720 is where the largest amounts open up.
Mortgage payment history
Recent late payments on your mortgage will hurt you, and a delinquency in the past year can disqualify you outright. Keep the current loan current while you apply.
Your existing debt
We look at your monthly debt payments against your income, and most borrowers can be up to 50%. Borrowing closer to your maximum usually means that limit tightens. If you’re using the HELOC to pay off credit cards, that can bring the number down and help you qualify.
Income verification
You link your accounts and income verifies electronically — bank, payroll, or tax accounts, depending on how you're paid. Wage earners, self-employed, and fixed income all qualify. If the electronic connection doesn't work for your situation, you can upload documents instead.
Property type
Single-family homes, townhomes, condos, and 2–4 unit properties qualify. Manufactured housing, co-ops, log homes, and mixed-use properties don't. If your home is currently listed for sale or was recently, your options narrow — ask before you apply.
Who signs
Only one owner applies for the HELOC, but everyone on the title signs the mortgage document. In community property and homestead states, your spouse may need to be added as a signer even if they're not on the title — their credit isn't pulled and they aren't responsible for the balance.
Frequently asked questions
A home equity line of credit lets you borrow against the equity in your home while keeping your existing mortgage in place. Your first mortgage stays untouched. You can borrow from $25,000 to $750,000, with several term lengths to choose from.
Income verifies electronically, most loans skip the appraisal, and funds disburse after the three-business-day rescission period that federal law requires on your primary residence. Some states require a longer wait.
Up to 90% of your home's value, counting your existing mortgage and the new loan together. Your exact ceiling depends on your credit score and property type. The more you borrow, the higher the credit score you’ll need, and the smaller the share of your home’s value you can reach.
Your full amount is paid out at closing; most or all of it, depending on the program. It's worth knowing before you apply: you'll pay interest on that amount from day one, whether or not you've spent it. That makes it best suited to a need you can size in advance. As you pay the balance down, you can redraw against your limit.
Both are available, depending on the program you qualify for. Variable rates are tied to the Wall Street Journal Prime Rate plus a margin set by your credit profile, so your payment moves when Prime moves. Fixed rates stay the same for the life of the loan. Variable isn't offered in every state.
Usually not. For most borrowers we estimate your home’s value from market data, so nobody visits your home. If you’re borrowing a larger amount, a full appraisal is required.
Yes. Primary residences, second homes, and investment properties all qualify, though you can borrow a smaller share of your home’s value on a second home or investment property. Investment properties are limited to 1–4 units.
Once the draw period closes, you enter the repayment period and pay down principal along with interest. If your program had an interest-only draw period, your payment will go up at that point. There's no balloon payment at the end. You can pay the balance down early, though repaying most of it within the first few months may carry a fee — worth asking about if you expect to.
There may be a short waiting period after a purchase or refinance is recorded with your county, so that the liens report correctly. If you've closed on something in the last few months, check before applying.
Tomo Mortgage's HELOCs are available in a select number of states - for full availability, please review our licenses page
They solve different problems. A cash-out refinance replaces your mortgage, which means giving up your current rate — worth it for a large sum if today's rates work for you. A HELOC leaves your mortgage alone and funds faster, which matters when the need is specific and the deadline is close. The comparison table above lays out the differences.