As home equity reaches record highs in the U.S., has begun accepting applications for new HELOCs) after pausing the product in 2020.
Many lenders stopped offering home equity products during the pandemic, as the housing market faced increased volatility. But high interest rates and the housing shortage have would-be sellers looking for ways to leverage cash out of the value of their property.
Unlike cash-out refinancing, which replaces your current mortgage with a new, larger one, a HELOC is a second mortgage with a separate interest rate.
Chase Bank
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, FHA loans, VA loans, DreaMaker℠ loans and Jumbo loans
Terms
10 – 30 years
Credit needed
620
Minimum down payment
3% if moving forward with a DreaMaker℠ loan
Terms apply.
Offers first-time homebuyer assistance?
Yes — click here for details
"As home valuations reach historic highs, homeowners are looking for more options to tap into their home's equity," Erik Schmitt, digital channel executive with Chase Home Lending, said in a release. "Whether it's to fund a home renovation, debt consolidation or another financial goal, our HELOC product allows customers to meet an immediate cash need without compromising their existing interest rate."
Chase HELOC
| Minimum credit score | 720 |
| Minimum home equity | 20% |
| Minimum draw | $25,000 |
| Maximum draw | $400,0000 |
HELOCs allow owners to use their house as collateral for a revolving line of credit. Traditionally, there's a 10-year draw period, during which only interest payments are made, followed by 20 years of full repayment, including principal.
Chase is offering lines of credit ranging from $25,000 to $400,000, a broader range compared to many HELOC lenders, who start at around $40,000 and cap out at around $300,000.
To qualify, borrowers need at least a 720 FICO Score, which is higher than he 650 to 680 most lenders are looking for.
Chase's HELOC structure also stands out from the pack: Borrowers must take out 85% of the line in their initial draw, and can access the remainder over the next three years. Most HELOCs allow borrowers to withdraw as little or as much as they want during a 10-year draw period.
The Chase HELOC is available nationwide except in Texas.
HELOC FAQs
What is a HELOC?
A HELOC is a revolving line of credit backed by the value of your home. Typically, a HELOC has a 10-year draw period followed by a 20-year repayment period. It is often referred to as a second mortgage because the lender has a secondary claim on your house if you fail to make timely payments.
What credit score is required for a Chase HELOC?
Chase requires a 720 FICO Score, which is higher than the 620 to 650 most lenders prefer.
How much can you borrow with a HELOC?
Typically, lenders cap HELOCs at between $300,000 and $500,000. However, some have maximums that surpass $1 million.
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