Question 1

How does a HELOC work?

Accepted Answer

A HELOC is a revolving line of credit secured by your home equity. You get a credit limit, draw funds as needed during the 5-year draw period (with unlimited draws), and repay only what you use. After the draw period ends, the repayment period begins. Interest rates can be fixed or adjustable. Some HELOCs only allow one borrower on the loan but will still qualify using spousal or household income. Call Dan and he will help you find the best fit for your situation.

Question 2

What is the maximum LTV on a HELOC?

Accepted Answer

Up to 89.99% combined LTV is available for owner-occupied properties with a 700+ FICO score, a DTI at or below 55%, and a line size of $100,000 or less. Borrowers with scores between 620 and 699, or on non-owner-occupied properties, have lower LTV limits. Call Dan for the limit that applies to your specific scenario.

Question 3

What credit score do I need for a HELOC?

Accepted Answer

The minimum credit score is 620 for owner-occupied properties and 680 for non-owner-occupied. To access the maximum 89.99% LTV on an owner-occupied property, you need a 700+ FICO score. Owner-occupied borrowers in the 620-699 range still qualify but at a lower combined LTV. Non-owner-occupied borrowers qualify at 680+ at a lower LTV. If your score is borderline, Dan can review your credit report and identify quick wins before applying.

Question 4

What are the HELOC term options?

Accepted Answer

Terms are available at 5, 10, 15, and 30 years (total loan term, including the 5-year draw period). The 30-year term is available for line sizes over $25,000. All term options include a 5-year draw period with unlimited draws. After the draw period closes, the remaining balance amortizes over the rest of the loan term.

Question 5

What property types are eligible for a HELOC?

Accepted Answer

Eligible properties include: single-family residences (SFR), townhouses and rowhouses, warrantable condominiums (mid- and high-rise included), planned unit developments (PUD), and multi-family residences (2-4 units). LTV limits may vary by property type. Investment and non-owner-occupied properties are eligible but at lower LTV limits than owner-occupied.

Question 6

Can I use my spouse's income to qualify even if they are not on the loan?

Accepted Answer

Yes. While only one borrower is required to be on the HELOC, household and spousal income can be used to qualify. This is a meaningful flexibility for borrowers whose individual income alone does not meet the DTI requirements but whose household income does.

Question 7

What can I use a HELOC for?

Accepted Answer

Home improvements, ADU or in-law suite construction, debt consolidation, college tuition, emergency reserves, investment property down payment, business working capital, or any major expense. There are no restrictions on how HELOC funds are used.

Question 8

What is a 5-day HELOC close?

Accepted Answer

Through our specialized HELOC partners, we can close a home equity line in as fast as 5 business days from application to funding, compared to 3-6 weeks at a traditional bank. Not every file qualifies for the 5-day track, but most straightforward owner-occupied Bakersfield files do.

Question 9

Is HELOC interest tax deductible?

Accepted Answer

HELOC interest may be tax deductible if the funds are used to buy, build, or substantially improve the home securing the line. If you use the funds to pay off credit cards or take a vacation, interest is generally not deductible. Always consult a tax professional for your specific situation.

Minimum Credit Score	620
Minimum Line Amount	$5,000
Maximum Line Amount	$750,000
Draw Period	3-5 years · unlimited draws within draw period
Rate Types	Fixed rate or adjustable rate
Qualifying Income	One borrower on loan; household/spousal income eligible to qualify
DTI Cap (89.99% LTV)	55%

Occupancy	Min. FICO	Max Combined LTV	Notes
Owner-Occupied	700+	89.99%	DTI ≤ 55% · Max line $100,000
Owner-Occupied	620-699	Lower · varies by scenario	Call Dan for your specific limit
Non-Owner-Occupied	680+	Lower · varies by scenario	Call Dan for your specific limit

Total Term	Draw Period	Repayment Period
5-Year	5 years	None, balance due at maturity
10-Year	5 years	5 years
15-Year	5 years	10 years
30-Year	5 years	25 years(Line size must exceed $25,000)

Home Equity Line of Credit (HELOC) in Bakersfield

HELOC Program Specifications

Core Program Details

LTV Limits by Occupancy and Credit Score

Loan Term Options

Eligible Property Types

Common Uses for a HELOC

HELOC FAQs

HELOC Questions & Related Pages

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