HELOC requirements: what you need to qualify

Credit score

The initial eligibility review uses a soft-pull Experian FICO 9 inquiry, which doesn't affect your score. Minimum scores for this program are generally:

Meeting the minimum doesn't guarantee approval, and higher scores usually qualify for better pricing and higher CLTV limits. Recent late payments, collections, or a high credit card utilization ratio can hold your score back.

Home equity and CLTV

You need enough equity that your current mortgage plus the new line stays within the program's combined loan-to-value (CLTV) limit. The limit varies by credit, property type, occupancy, line size, and state. Texas, for example, caps total debt on a homestead at 80% of its value.

Calculate your equity →

Debt-to-income ratio (DTI)

Lenders compare your monthly debt payments — including your mortgage, the new HELOC payment, auto loans, student loans, and minimum credit card payments — to your gross monthly income. A lower DTI shows you can comfortably handle the new line. If you're consolidating debt, paying off those accounts with the HELOC can improve your DTI.

Income and documentation

Expect to verify identity, income, and homeownership. Depending on your situation this may include pay stubs, W-2s, tax returns, or other income documentation, plus your current mortgage statement and homeowners insurance. The digital process lets you upload most items online.

Property requirements

• Occupancy: primary residences, second homes, and investment properties may be eligible, with different score and CLTV requirements.
• Valuation: lines of $400,000 or less generally don't need a full appraisal and may use an automated valuation model (AVM) or broker price opinion (BPO).
• Title: the property needs clear title apart from your existing mortgage, and you'll need homeowners insurance.
• Location: the program is available in 48 states — not in New York or Connecticut.

Some property types — such as certain condominiums, manufactured homes, co-ops, or properties held in some trusts — may have extra requirements or may not be eligible. Ask before you apply if your property is unusual.

How to improve your chances

1. Lower your card balancesUtilization under 30% — ideally under 10% — can raise your score quickly.
2. Fix errors on your credit reportDispute inaccurate late payments or collections before you apply.
3. Get a realistic value estimateKnowing your likely value helps you request the right line size.
4. Gather documents earlyHaving income and mortgage statements ready speeds up closing.

Frequently asked questions

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