Aven, founded in 2019, offers a lineup of niche home equity-backed credit card financing products.
The Bay Area-based fintech company also boasts a product called "Aven Home Equity Cash," a more traditional home equity line of credit (HELOC).
With this product, borrowers open a HELOC as they would with any other lender, but unlike most other lenders, the full line of credit is accessible through a credit card. Customers who use the card to pay earn 2% cashback. Unlike most lenders, if you want to get cash out with the card, there is a draw-to-bank fee of 2.5%.
Here at CNBC Select, we like Aven's innovative funding method. We also like that it has a lowest rate guarantee, with a $250 promise if borrowers are quoted a higher rate at another company.
Read more: What is home equity?
However, Aven can be a bit exclusive. It's 100% virtual, which could be a dealbreaker for some borrowers, and it is known to favor applicants with higher-than-average credit scores and financial backgrounds, which may make other lenders better for many homeowners.
Aven Home Equity Cash
Loan types
HELOC
Minimum credit score
620
Maximum loan-to-value
89%
Home equity limits
$5,000 to $400,000
Terms
5, 10, 15, 20 or 30 years
Availability
Aven is available in 43 states. Does not lend in Hawaii, Massachusetts, Missouri, Nevada, New York, South Carolina, Texas and Washington, D.C.
Pros
- States it will fund line of credit in three days, a much shorter fund timeline than other lenders, meaning you'll be able to access cash as soon as possible
- Offers 2% cashback, a distinct feature that other lenders do not offer.
- Remote closing so you can tap into your home equity from your couch
- Offers longer repayment period
Cons
- Only available in 39 states
- No in-person option
- 4.9% first-draw fee
How does an Aven HELOC work?
The "Aven Home Equity Cash" product combines elements of a traditional HELOC and a credit card.
Like a traditional HELOC, the Aven HELOC is secured by the borrower's home's value. It also offers similar rates: a 5- or 10-year draw period, during which borrowers can make withdrawals up to the line of credit maximum while making only monthly interest payments.
With its HELOC product, Aven offers a 5-, 10-, 15-, 20-, or 30-year repayment term and a rate of 6.99% to 14.99%.
But unlike most traditional HELOCs, which wire the cash directly to the borrower's account after a draw application, Aven's product instead issues a full line of credit, which you can access using Aven's credit card. Aven's 2% cashback rewards are a perk that traditional HELOCS don't offer.
Aven home equity overview
Aven Home Equity Cash is available in 38 states.
Aven HELOC terms
- Draw period terms: 2 to 5 years
- Repayment terms: 5- to 10-year draw period; 5-,10-, 15-, 20 and 30- year repayment periods
- Rate structure: Fixed
- Loan amount: $10,000 to $300,000
Aven HELOC fees
- First-time draw fee: 4.90%
- Origination fee: None
- Application fee: None
- Cash fee: 2.5% of the cash transaction
Read more: What is a home equity line of credit?
Home equity requirements
In addition to a home appraisal, Aven requires:
- Credit score: 620
- Max loan-to-value ratio: 89%
- Max debt-to-income ratio: Undisclosed
Aven customer service
Aven received an A+ from the Better Business Bureau for its transparency, truthful advertising and its response to consumer complaints. It has no physical locations and offers a fully remote closing.
While most lenders list a phone number and hours on their websites to chat with a customer support representative, Aven asks customers to schedule a 10-minute appointment to speak with someone. As of this review, the next available time was five days away, which could be inconvenient for a borrower who needs immediate assistance by phone.
To pay their bill by phone, customers can call Aven Customer Service at 415-582-6613, according to its website. The phone line hours are not available on the website.
Aven also provides a chatbot that can direct you to posts on its site with additional resources and information.
How does Aven compare?
Here's how Aven stacks up against two major players in the home equity space.
Aven vs. Figure
Figure
Loan types
HELOC, DSCR, cash-out refinance, crypto-backed loan, small business loans
Minimum credit score
600
Maximum loan-to-value
85%
HELOC draw amount
$15,000 to $750,000
HELOC draw period
2 years or 5 years
Repayment period
10 years, 15 years, 20 years, 30 years
Availability
Figure HELOCs are available in all states but Hawaii.
Pros
- Funding as soon as 5 days, much shorter than most fund timelines so you'll get your money as soon as possible.
- E-closing available, which means you can tap your home equity from your couch.
- No opening fees, prepayment fees or maintenance fees, saving you on closing costs and ongoing costs over the life of the financing
- High LTV maximum, meaning that you'll be able to maximize the amount you take out.
Cons
- Not available in all states
- Maximum draw period is five years
Available APRs range from 6.75% to 14.35%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn't permit eNotary ($350), and recording fees ($0 - $315) and recording taxes, which vary by state and county ($0- $1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
Aven and Figure are two fintech lenders changing how people tap into their home equity, each with a distinct product. Both boast fast funding times, low rates and online closing options — and both have a relatively short draw period of five years. Comparatively, most HELOC lenders offer a draw period of 10-years.
Figure is available in more states than Aven and borrowers can draw up to $750,000, compared to Aven's $400,000 max. It's also cheaper if you're looking to get cash — Figure will deposit the draw directly into your account, while Aven requires a 2.5% fee to get cash.
But when it comes to perks, Aven has the upper hand: Figure does not offer a card or cashback options. Aven also has a draw minimum of $5,000, which makes it ideal for borrowers looking for a smaller amount of money. Most HELOC lenders require borrowers to withdraw a minimum ranging from $10,000 to $50,000.
Aven vs. Rocket Mortgage
Rocket Mortgage Home Equity
Loan types
Home equity loans
Minimum credit score
680
Maximum loan-to-value
90%
Loan limits
$45,000 to $500,000
Repayment period
10 to 20 years
Availability
Available in all 50 U.S. states and Washington, D.C.
Pros
- Higher-than-average LTV ratio, meaning you'll be able to maximize the amount you can take out.
- Above average scores for customer satisfaction from J.D. Power, meaning you'll be in great hands from application to closing day.
Cons
- High minimum loan amount
- No brick-and-mortar locations
- Only provides two term options: 10 years and 20 years
Aven and Rocket are two online-only home loan lenders but that's about where the similarities stop.
Rocket Mortgage and Aven offer two different types of home equity products: Rocket finances home equity loans, while Aven finances HELOCs.
In terms of availability and customer service, Rocket pulls ahead. It is one of the largest mortgage lenders in the country, offering a slew of purchase and refinance options as well. Plus, it lends in every state. Rocket consistently ranks high on customer satisfaction rating sites and has robust customer service phone hours.
Rocket is also more transparent about its process and loan details on its website. For example, it clearly states its current rates, qualifications for its loans and offers calculators to help customers figure out what repayment would look like.
But unlike Rocket, Aven allows borrowers to earn cashback by tapping into their home equity.
How to apply with Aven
You can apply for a HELOC with Aven via its exclusively online application.
Like with all home equity financing, you'll need to provide personal information, including a photo ID, Social Security number, pay stubs and the most recent W-2s. If you're self-employed, you'll also need two years of personal tax returns.
You'll also need to provide details about the property, including the deed and recent mortgage statements. During the underwriting process, the home will be inspected and appraised.
You will have to go through a digital notarization process to get the card.
Is a Aven home equity right for me?
Aven is a great option for those with an above-average credit score and strong financials who want to earn cashback as they tap into their equity — and get the lowest rate.
But those with less-than-perfect credit or who live in one of the 12 populous states where Aven does not do business will need to find another lender.
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Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviews mortgage products using a variety of criteria, including average rates, terms, availability, fees, types of loans offered, online experience and customer satisfaction.
Additionally, we incorporate findings from independent sources, including lender scores from the J.D. Power mortgage origination and servicing surveys and ratings from the Better Business Bureau.
For home equity loans, we review rates, repayment terms, the amount of equity required and the minimum and maximum loan amounts available.
We also consider requirements for credit scores, debt-to-income ratios and combined loan-to-value ratios.
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