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Home equity can potentially provide lower-interest options for financial recovery despite credit challenges. Learn how home equity loans, HELOCs, and cash-out refinances may provide possible solutions for those with credit issues. Discover common financial triggers where home equity can be a viable option. Explore financial solutions that may address past credit challenges, including FHA programs. Learn how you might be able to stabilize your finances and rebuild your credit with effective equity use. Rates are Dropping! Click here to check your rate Get Started Now Why Home Equity is a Powerful Tool for Financial Recovery Home equity offers a unique opportunity to regain control over your finances, especially if you’ve faced credit issues. Because your home is collateral, lenders often provide better terms compared to unsecured debt — making home equity a potential option to stabilize and rebuild your finances. Lower Interest Rates Compared to credit cards or personal loans, home equity financing, in many cases, offers significantly lower interest rates, reducing your monthly payments and total repayment cost. Larger Loan Amounts Your home’s value is often the key to giving you access to more capital than other unsecured loans, allowing you the ability to consolidate multiple debts or cover large expenses. Fixed Payments (for Home Equity Loans) A Home Equity Loan offers fixed payments, helping you budget predictably and potentially avoid surprises as you work towards getting back on your financial feet. Consolidation Power Using home equity to consolidate high-interest credit card debt, medical bills, or other loans can streamline payments and, with effective financial management, often improve a credit score over time. Looking to access your home’s equity to help manage your financial recovery? Discover our equityFREEDOM products that can give you the tools to keep up. Common Triggers for Using Home Equity with Credit Challenges Overspending on vacations, college tuition, a new car, home repairs and remodels may put a strain on your budget, but without committing to a budget or living within your means, can contribute to debt that your income may not be able to keep up with. Financial hardships can, in many cases, lead homeowners to seek equity solutions for relief and rebuilding. Here are a few of the more common challenges some homeowners may face and their possible solution: High-Interest Credit Card Debt When credit card balances spiral with high rates, consolidating with a home equity loan or HELOC can potentially lower costs and simplify payments. Late Payments on Various Accounts Past late payments may limit access to new unsecured credit, but home equity loans consider your home's value, which may be helpful to get funds despite credit hits. Past Bankruptcy or Foreclosure (Post-Discharge) Even after bankruptcy or foreclosure, some lenders and FHA programs may allow access to home equity loans, supporting financial fresh starts. Medical Debt Unexpected medical expenses can be overwhelming; home equity financing offers a cost-effective way to cover these bills without high-interest debt. Job Loss or Income Reduction For those who have experienced a drop in personal income, tapping home equity is an option for accessing emergency funds to cover essentials while rebuilding stability. Desire for a Financial Fresh Start Many homeowners use equity loans to pay off debts and reset their credit, creating a path to potentially stronger finances. Options for Accessing Home Equity Despite Credit Issues Understanding each product helps you choose the best path to rebuilding credit and stabilizing finances. Home Equity Loan (HEL): How it works: A lump sum loan secured by your home’s equity, usually with fixed lower interest rate and predictable monthly payments which can often make monthly budgeting easier. Credit issues: More lenient than unsecured loans; lenders look at equity and ability to repay. Useful for: Large, one-time expenses (i.e., home renovations, weddings, medical bills, college tuition and more) or debt consolidation when fixed payments are preferred. It also keeps your first mortgage intact as a Closed-End Second (CES) Loan, so your low first mortgage rate is untouched. This is especially nice when refinancing your first mortgage isn’t ideal. Home Equity Line of Credit (HELOC): How it works: A revolving credit line secured by your home’s equity, works like a credit card, with typically lower payments during the draw period and interest-only payments on the funds you use. A repayment period follows in which both principal and interest will need to be repaid at variable rates based on market conditions. Credit issues: Approval depends on equity and credit, but some lenders accept past credit challenges. Useful for: A borrower can use a HELOC for whatever they want. It’s ideal for both ongoing and unpredictable expenses, such as phased home renovations or educational costs, offering flexibility to borrow as needed. Cash-Out Refinance: How it works: Replaces your existing mortgage with a larger one that pays off your existing one, while cashing out equity in the process. Fixed or variable rates are often lender options. (You’ll likely lose your existing low mortgage rate, which may be a factor if current rates are significantly higher.) Credit issues: FHA-backed options may help those with less-than-stellar credit qualify. Useful for: Homeowners wanting a lump sum with potentially lower interest rates than other loans. For those looking for how to pay for major home renovations and debt pay-off, a cash-out refinance may be an option worth exploring. Ready to stabilize your finances? Take the first step by contacting a loanDepot loan officer today. Rates are Dropping! Click here to check your rate Get Started Now Finding Lenders Willing to Work with Past Credit Issues Finding the right lender is key for success when credit is a concern. There are several options to consider. Online Lenders: loanDepot loanDepot specializes in home equity products designed for many kinds of borrowers, including credit-challenged borrowers, and offers a fast, transparent process. Credit Unions Often more flexible on credit, local credit unions may provide competitive rates and personalized service. Local Banks Some community banks consider your full financial picture, including equity and income, not just credit score. Mortgage Brokers Brokers have access to multiple lenders and can often match you with home equity options tailored to your credit history. FHA Cash-Out Refinance FHA programs offer options for those with past bankruptcies or foreclosures, making home equity accessible despite credit setbacks. People Also Ask (FAQs) About Home Equity with Credit Issues: Can I get a home equity loan with bad credit? Yes, but lenders will consider your equity and ability to repay. Some loan features may vary, so it’s important to understand your options. Can I use home equity to pay off credit card debt? It’s a common strategy to consolidate high-interest credit cards into a lower-interest home equity loan or HELOC. What if I have a low credit score but high home equity? High equity can improve your chances for home equity financing despite credit challenges. Will a home equity loan improve my credit score? If used responsibly, a history of timely payments can help rebuild credit over time. Recover Stronger—Use What You Have to Get Ahead Your home’s equity is more than just property value — it’s a financial resource that can help rebuild credit, consolidate debt, and stabilize your finances after past credit issues. Don’t let past mistakes hold you back. By exploring home equity for bad credit options like home equity loans, HELOCs, or FHA cash-out refinances, you can pave the way toward stronger financial health. Take the first step today. Contact us to discuss how your home’s equity can support your financial recovery journey. Rates are Dropping! Click here to check your rate Get Started Now 

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Know the Structure: Understand that a home equity loan is a "closed-end" product, providing a one-time lump sum with fixed payments rather than a revolving line of credit. Get Accurate Estimates: Obtain at least three professional bids for home projects and include a financial cushion to avoid running out of funds. Audit Your Debts: If consolidating, verify exact payoff balances for all accounts to ensure your new loan fully covers your existing high-interest debt. Optimize Your Credit: Improve your credit score before applying to secure the most favorable interest rates and terms. Evaluate Alternatives: Compare a second mortgage against a cash-out refinance to determine which option best protects your current interest rate and long-term goals.  Rates are Dropping! Click here to check your rate Get Started Now The selection of a second mortgage to draw upon your home’s equity may seem simple enough. You want to borrow against the difference between what you owe on your mortgage and what your home is worth. For example, if your home is worth $400,000, but you owe $250,000, you have $150,000 in equity. Borrowing these funds tends to be a low-cost way to tap into your home's value. However, the terms of home equity loans or second mortgages can be a bit complex so you want to make sure you’re prepared ahead of time. For any questions regarding a home equity loan, speak to a loanDepot licensed loan officer today. What is a Standard Second Mortgage? Homeowners can use second mortgages, also referred to as home equity loans, for many different needs. They work well as a tool for home repairs or renovations, consolidating debt, or even for the down payment on a second property. While there is no limit on the way you use the funds in many cases, it is important to take into consideration your long-term plans for the use of those funds and any future equity your home builds. A standard home equity loan is known as a “closed-end second,” meaning, you can’t pay down the balance and then draw upon again it like you would with some other programs. You will take out a lump-sum loan with a fixed number of payments, which are set forth before you accept the loan. Because of this, you will want to be sure you know how much you will need before deciding on how much to borrow. How to Prepare for a Home Equity Loan Before applying, make sure to do due diligence and add up all the ways you plan to use the money. If the loan is for a home-improvement project, get at least three different estimates and give yourself a cushion, if possible, for unforeseen expenses and emergencies. Estimates generally aren’t required for a standard home equity loan, but it is recommended so you know exactly what you’ll need before deciding how much to borrow. Also, take steps to optimize your credit, so you can get the best terms possible. If you are consolidating, add up every bill you want to pay off and make sure you have the current balance. Underestimating your car payoff amount by a few thousand dollars can put you in a situation where you are paying both loans concurrently, which can undermine your consolidation goals. Terms and Conditions to Consider with a Second Mortgage Prior to making this decision, you want to examine your options and make sure the terms are consistent with what you can manage for the life of the loan. Take into consideration your current equity, your future projected income, and goals you have for your home to calculate the amount you will need and feel comfortable with borrowing. Another option you might consider when borrowing against your home's equity is a cash-out refinance. Refinancing your home is a bit different. It allows you to obtain a new mortgage to replace the current one (and can combine a first and second if you’ve already taken out a second loan). This gives you the opportunity to choose different loan terms, if you’d like. However, if you are content with the terms of your current first mortgage, a home equity loan can be an ideal option. Which One is Right for You? A second mortgage is a powerful financial tool that allows you to tap into your home's equity for major goals like renovations or debt consolidation. Because these loans provide a one-time lump sum with fixed terms, success depends on precise planning—from gathering multiple project estimates to verifying exact debt payoff balances. By optimizing your credit and comparing a home equity loan against a cash-out refinance, you can ensure you’re choosing the most cost-effective way to access your property's value. Contact a loanDepot licensed lending officer today to evaluate your equity and find the right second mortgage for your needs. Equity is powerful because it is an affordable type of mortgage loan. It gives you a security net as well, allowing you to tap into it when you need to do so. Carefully consider each of these second mortgage options before making your decision. A loanDepot licensed loan officer can help. Call a loanDepot loan officer for more information. Rates are Dropping! Click here to check your rate Get Started Now

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Avoid costly mistakes by understanding how home project financing works and what to watch out for Compare flexible funding options like Home Equity Loans, HELOCs, and Cash-Out Refinances Find specialized loans for fixer-uppers, energy upgrades, and major repairs Know how home equity, credit scores, and loan terms affect your borrowing power Choose a financing strategy to match your project scope and budget  Rates are Dropping! Click here to check your rate Get Started Now The Risks of Expensive Home Project Financing Using high-interest financing for home improvements can significantly increase your overall costs. Over time, this can mean paying more than you may have anticipated, while higher credit utilization may negatively impact your credit score. Looking to fund your home project and save on interest? Contact us today to explore affordable financing options. Options to Fund Your Dream Home Projects Leveraging your home's equity can be a smart way to finance large home improvements — from long-overdue renovations to dream additions. Whether you're looking for predictable payments, flexibility, or special-purpose funding, there may be a loan product to fit your goals. Here's a breakdown of some options worth considering: Home Equity Loan (HELoan): The Fixed Rate Option A Home Equity Loan allows you to borrow a lump sum against the equity you've built in your home — typically at a fixed interest rate without disturbing your existing first mortgage. This option is ideal if you have a clear project budget in mind, such as a full kitchen remodel or building an ADU (accessory dwelling unit) or even large bills and help with everyday expenses like weddings, college tuition, debt consolidation, and medical bills. When the rate and monthly payments stay the same, there can be predictability and stability over the life of the loan. Home Equity Line of Credit (HELOC): A Flexible Option A HELOC works more like a credit card — you get a revolving line of credit you can draw from as needed, up to a certain limit during the draw period to pay interest only on the amount of funds you use. After that, a repayment period begins, during which you repay both principal and interest at a variable interest rate. This is a popular alternative for ongoing or phased projects where costs may vary or unfold over time, like landscaping, window replacements, exterior upgrades, or multi-stage renovations. The interest-only payments during the initial draw period can be attractive for some to help manage cash flow early on. Cash-Out Refinance: A New Mortgage Opportunity With a cash-out refinance, you replace your current mortgage with a new, larger one — and take the difference in cash. This fixed or variable rate option can be particularly beneficial if current mortgage rates are lower than what you're paying now. These loans are often used to fund substantial renovations, consolidate higher-interest debt, or make upgrades that increase property value. Just keep in mind, this resets your mortgage term and may extend repayment. FHA 203(k) Renovation Loan: For Fixer-Uppers* This government-backed loan combines the purchase price of a home with renovation costs into a single mortgage — ideal for buyers tackling a major fixer-upper or new addition construction. Just one loan covers it all—allowing the finance of both structural and cosmetic improvements. It’s especially useful for buyers who want to invest in a less-than-perfect property and build value through improvements. Thinking about your next big renovation? Let’s explore which home upgrade financing solution best fits your project, budget, and long-term goals. Whether you're improving your forever home or preparing to sell, making the right financial move for you can enhance your lifestyle and your home’s value. Rates are Dropping! Click here to check your rate Get Started Now Key Considerations for Project Financing When financing home projects, there are many key considerations. These include your home equity, as more equity can increase borrowing power and secure better rates, and your credit score, which is crucial for obtaining competitive interest rates. By comparing the APR and closing costs across different lenders, you’ll be able to consider the loan term's impact on monthly payments versus total interest paid. Your Home’s Equity The more equity you’ve built in your home, the more you may be able to borrow — often at better rates. Lenders typically allow you to tap up to 80–90% of your home’s value, minus your current mortgage balance. Your Credit Score A strong credit score is a potential factor in unlocking lower interest rates and more favorable loan terms. Even a small boost in your score before applying can make a noticeable difference in how much you’ll pay over time. Interest Rates & Fees Always compare the APR (not just the headline rate), as it includes fees and closing costs. Even loans with similar rates can vary widely in total cost depending on lender fees, points, or early repayment penalties. Loan Term vs. Monthly Payment Longer loan terms typically result in lower monthly payments, but may increase the total interest paid over time. Shorter terms often come with higher monthly payments, yet can reduce overall interest costs. The best option depends on your financial situation, monthly budget, and long-term goals. Comparing Popular Home Project Financing Options When deciding how to finance your large home projects, it’s important to understand the strengths and limitations of each option. Home Equity Loans offer a fixed lump sum with a fixed interest rate and set monthly payments. They are ideal for large, one-time projects like a kitchen remodel or bathroom renovation. Because payments are predictable, budgeting can be easier. However, you’ll need good credit to qualify, and if you need extra funds later, you’ll have to apply for a new loan. Home Equity Lines of Credit (HELOCs) work more like a credit card — you get a revolving credit line with variable interest rates, and you only pay interest on the amount you borrow. This flexibility makes HELOCs perfect for phased or ongoing projects, such as multi-stage landscaping or basement finishing. Keep in mind, rates can rise, and payments may increase accordingly. Cash-Out Refinances replace your current mortgage with a larger loan, letting you access a lump sum of cash upfront. This option often carries fixed or variable rates and is useful when you want to refinance and tap into your home equity at the same time. However, you may lose your existing low mortgage rate and face closing costs. FHA 203(k) Renovation Loans are designed specifically for fixer-upper homes, allowing you to roll repair costs into your mortgage with a relatively low down payment. These loans can be especially useful if you’re buying and renovating simultaneously. Each option offers distinct benefits based on your project size, timeline, financial situation, and credit standing. Comparing them carefully can help you select the financing that fits your home upgrade goals and budget. Make Your Dream Space Real—With Your Home’s Help! Your home is more than a place to live — it’s a powerful financial tool that might help you fund large home projects without expensive financing. By understanding the potential risks of costly loans and the potential impact of home equity products and specialized loans, you could create the dream space you want without breaking the bank. Explore your home's equity and credit options carefully and compare the loan terms and rates to find the perfect fit for your needs. Ready to start your affordable home upgrade journey? Contact us today and make your dream space real! Rates are Dropping! Click here to check your rate Get Started Now *loanDepot.com, LLC is not acting on behalf of or at the direction of HUD/FHA or the federal government. This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Not all products available in all areas. Other limitations apply. Rates, terms and availability of programs are subject to change without notice. The loanDepot HELOC has a variable interest rate based on an index (WSJ Prime Rate) plus a margin set by the lender. Your APR will not exceed 18.00% at any time during the term of your account (could vary based on limits imposed by state law).  Amount of line of credit depends on your property equity and lien position of the HELOC. There are no third-party fees. Minimum payment will be at least $100. The origination fee will be up to 5% of the line amount, or the maximum allowed by state law, whichever is less. A HELOC requires you to pledge your home as collateral and you could lose your home if you fail to repay. Offers, rates and fees are subject to change without notice. Credit criteria, exclusions, and limitations apply. The loanDepot Texas HELOC has a 30-year term: a 3-year draw period and interest only period and a 27-year repayment period. The minimum monthly payment during the first 3 years is interest only and is fully amortized over 324 months during the repayment phase. For all other states, the HELOC has a 30-year term which includes a 3-year draw period (within a 10-year interest only period) and 20-year repayment period. The minimum monthly payment during the first 10 years is interest only and is fully amortized over 240 months during the repayment phase. Available funds are accessible via ACH/Wire. The loanDepot first lien HELOC is only available on free and clear properties. Properties with existing recorded mortgage lien(s) are not eligible and payoffs of existing mortgage liens are not available.  The 2nd lien closed end home equity loan ("HELoan") is a subordinate mortgage and is not available in all states. The HELoan is available for primary and secondary residences and minimum loan amounts apply. loanDepot.com, LLC, 6561 Irvine Center Drive, Irvine, CA 92618. All rights reserved. NMLS #174457 (http://www.nmlsconsumeraccess.org) AZ: Mortgage Banker 0911092. CA: Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act CRMLA 4131040. CO: Regulated by the Division of Real Estate. DE: Licensed as a Mortgage Lender by the Office of the State Bank Commissioner, No. 011162. KS: Kansas Licensed Mortgage Company No. SL.0026291 MA: Mortgage Lender and Broker License #MC174457. MN: Residential Mortgage Originator License MN-MO-40203037. This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. Section 47.206 (3) and (4). MS: Licensed by the Mississippi Department of Banking and Consumer Finance. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed Mortgage Banker – NJ Department of Banking and Insurance. NY: Licensed Mortgage Banker - NYS Department of Financial Services No. 109061. OH: Residential Mortgage Lending Certificate of Registration No. RM.804269.000. OR: License # ML-4972. PA: Licensed Mortgage Lender No 31342 by the Department of Banking and Securities. RI: Rhode Island Licensed Lender, Licensed Loan Broker and Third Party Loan Servicer. WA: licensed by the Department of Financial Institutions under the Consumer Loan Act#CL-174457. Also licensed in: AL, AK, AR, CT, DC, FL, GA, HI, IA, ID, IL, IN, KY, LA, MD, ME, MI, MO, MT, NC, ND, NE, NM, NV, OK, SC, SD, TN, TX, UT, VA, VT, WI, WV and WY.

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As a homeowner, the equity you've built is more than just a number; it's potentially a powerful financial tool for navigating significant life milestones. By strategically using your home equity, you can fund a child's education, support essential family needs, or prepare for estate planning and generational impact. This approach allows you to confidently plan for your family's future and ensure their well-being. Here’s how home equity can help you support what matters most: Fund major family milestones like college tuition, adoption, or home upgrades Access lower interest rates compared to personal loans or credit cards Choose flexible financing options tailored to your needs Build generational wealth and legacy through estate planning Use equity responsibly with expert guidance and financial planning Rates are Dropping! Click here to check your rate Get Started Now Why Leverage Home Equity for Life's Big Moments? When major family expenses or long-term financial goals arise, tapping into your home equity often provides a more advantageous solution than other financing options. Whether you're planning for a new baby, helping a child through college, or preparing for retirement, your home’s value can be a reliable source of funding. Lower Interest Rates: Compared to credit cards or personal loans, home equity products typically offer significantly lower interest rates. This makes them ideal for large expenses that would otherwise accrue high interest over time. Larger Borrowing Capacity: Because your home is a high-value asset, you may be able to borrow more than you could with unsecured loans. This is especially helpful when funding education, medical expenses, or multi-generational support. Flexible Use of Funds: Unlike student loans or auto loans, home equity funds can be used for virtually any purpose—from tuition and childcare to estate planning and home renovations. Potential Tax Advantages: In some cases, the interest paid on home equity loans or lines of credit may be tax-deductible, especially when used for home improvements. Always consult a tax advisor to understand your eligibility1. Rates are Dropping! Click here to check your rate Get Started Now Key Family Milestones & Long-Term Plans Home Equity Can Fund Your home equity could be the financial cornerstone for various pivotal family and generational plans. Here are some common ways families use equity to support what matters most: Education Costs & Funding: College tuition, private school fees, or vocational training could be funded through a home equity loan2 or HELOC3. This could potentially reduce reliance on high-interest student loans and provide more flexible repayment options. New Baby or Adoption Expenses: Welcoming a new child, whether through birth or adoption, comes with significant costs. From medical bills to nursery setup, tapping into your home equity to get cash could help ease the financial burden. Family Support & Assistance: Whether helping aging parents, supporting adult children, or covering emergency expenses, your home equity could serve as a safety net for your loved ones. Generational Wealth & Estate Planning: Use your equity to set up trusts, gift funds to heirs, or invest in long-term assets that could help build generational wealth. This can be a meaningful way to create a lasting legacy. Major Family Home Improvements for Future Needs: Renovations like adding an in-law suite, upgrading accessibility features, or expanding living space could be funded by your home’s equity, enhancing your home’s value and functionality for years to come. Find out what you could qualify for. Choosing the Right Home Equity Option There are several ways to access your home’s equity to get cash, each with unique benefits: Home Equity Loan (HELoan2): A lump-sum loan with fixed interest rates and predictable monthly payments—great for one-time expenses like tuition or renovations. Home Equity Line of Credit (HELOC3): A revolving credit line with variable interest rates—perfect for ongoing or unpredictable costs like childcare or medical bills. Cash-Out Refinance: Refinance your mortgage for a larger amount and receive the difference in cash—useful for consolidating debt or funding large projects. Steps to Leverage Your Home Equity Responsibly Using home equity wisely ensures long-term financial health. Here’s how to get started: 1. Assess Your Equity: Calculate your current home value and subtract your mortgage balance to determine available equity. 2. Define Your Needs: Clarify your goals. Whether it’s funding education, supporting family, or planning your estate. 3. Evaluate Your Financial Health: Review your income, credit score, and debt-to-income ratio to ensure you’re ready to borrow responsibly. 4. Seek Professional Advice: Speak with a financial advisor or mortgage specialist to choose the best product and understand tax implications. People Also Ask (FAQs) About Using Home Equity for Family Needs: Can I use a HELOC3 to pay for college tuition? Yes, many families use HELOCs to cover tuition and related expenses. It offers potential flexibility and may have lower interest rates than student loans. Is using home equity to help my kids buy a house a good idea? It could be, especially if it helps them avoid high-interest loans. However, consider your own financial stability and consult a financial advisor. What are the tax implications of gifting money from home equity? Gifting funds may have tax consequences depending on the amount and how it’s structured. Always speak with a tax professional before proceeding1. How does a home equity loan affect my retirement savings? If managed wisely, it could preserve retirement funds by covering large expenses without dipping into savings. But it’s important to balance debt and future income. Could I use a cash-out refinance to set up a trust for my grandchildren? Yes, many homeowners use cash-out refinances to fund trusts or legacy plans. This can be a strategic way to build generational wealth. Support What Matters Most, When It Matters. Your home equity isn’t just a number, it could be a gateway to supporting your family’s dreams, milestones, and legacy. Whether you're planning for college, welcoming a new child, or building a lasting estate, using your home equity strategically could help you fund what matters most, when it matters most. Ready to explore your options? >Speak with a mortgage specialist today to find the right home equity solution for your family’s future. Rates are Dropping! Click here to check your rate Get Started Now 1 loanDepot.com, LLC does not provide legal, investment, accounting, or tax advice, please consult a licensed attorney, financial planner, CPA or tax professional on any information or opinions contained herein.  2 The 2nd lien closed end home equity loan ("HELoan") is a subordinate mortgage and is not available in all states. The HELoan is available for primary and secondary residences and minimum loan amounts apply.  3 The loanDepot HELOC has a variable interest rate based on an index (WSJ Prime Rate) plus a margin set by the lender. Your APR will not exceed 18.00% at any time during the term of your account (could vary based on limits imposed by state law).  Amount of line of credit depends on your property equity and lien position of the HELOC. There are no third-party fees. Minimum payment will be at least $100. The origination fee will be up to 5% of the line amount, or the maximum allowed by state law, whichever is less. A HELOC requires you to pledge your home as collateral and you could lose your home if you fail to repay. Offers, rates and fees are subject to change without notice. Credit criteria, exclusions, and limitations apply. The loanDepot Texas HELOC has a 30-year term: a 3-year draw period and interest only period and a 27-year repayment period. The minimum monthly payment during the first 3 years is interest only and is fully amortized over 324 months during the repayment phase. For all other states, the HELOC has a 30-year term which includes a 3-year draw period (within a 10-year interest only period) and 20-year repayment period. The minimum monthly payment during the first 10 years is interest only and is fully amortized over 240 months during the repayment phase. Available funds are accessible via ACH/Wire.