Overview

• A revolving line of credit you can use when you need it, similar to a credit card.

The requirements:

• Documentation verifying finances, income and employment
• Credit score of at least 680
• Debt-to-income ratio between 40%
• Proof that line of credit is being obtained on your primary residence

The benefits:

• Interest rate is adjustable, and usually lower than unsecured credit
• Quick access to funds, once approved
• Interest-only payments during draw period

Right for your situation if:

• Want a home equity loan, but don’t need the funds in a lump sum
• Like to have access to money “just in case”