HELOC
A Home Equity Line of Credit that flexes with you.
A HELOC gives you access to your home equity as a revolving line of credit. Borrow what you need, when you need it, and only pay interest on the balance you actually use. Belong Lending shops HELOC-approved wholesale lenders across Michigan, Ohio, Florida, Georgia, and Texas.
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a second-lien loan that lets you borrow against the equity in your home. Unlike a lump-sum home equity loan or cash-out refinance, a HELOC works like a credit card — you get a maximum credit limit and can draw against it during the "draw period," typically 10 years.
During the draw period, you can borrow, repay, and re-borrow as often as you want. After the draw period ends, most HELOCs move into a "repayment period" (typically 10–20 years) where the balance amortizes and you can no longer draw new funds.
How much can you borrow?
Most HELOC lenders allow you to borrow up to a combined loan-to-value (CLTV) of 80% – 90% of your home's appraised value. That means the total of your first mortgage plus the HELOC limit typically cannot exceed 80% – 90% of what the home is worth.
For example, if your home is worth $300,000 and you owe $180,000 on the first mortgage, an 85% CLTV HELOC could offer up to a $75,000 credit line ($300,000 × 85% − $180,000).
HELOC rates
HELOC rates are typically variable, tied to the Prime Rate plus a margin. As Prime moves, your rate moves. Some HELOCs offer optional fixed-rate lock features that let you convert part of the balance to a fixed rate for a set period.
Common uses: home improvement, debt consolidation, tuition, emergency fund cushion, or bridging between homes. HELOC interest may be tax-deductible when funds are used to buy, build, or substantially improve the home securing the loan — check with your tax advisor.
Key benefits
- Access up to 80% – 90% CLTV of your home value
- Revolving credit — borrow, repay, and re-borrow during the draw period
- Interest-only payment options during the draw period on many programs
- Only pay interest on what you actually borrow
- Optional fixed-rate lock features on many HELOCs
Who this loan fits best
- Homeowners with significant home equity looking for flexible access
- Borrowers financing ongoing home improvement projects
- Anyone consolidating higher-rate credit card or personal loan debt
- Homeowners who want a standing line of credit for emergencies
Estimate your monthly payment
HELOC payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with HELOC loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
What is the difference between a HELOC and a home equity loan?
A home equity loan is a fixed-rate, fixed-payment lump sum that you receive at closing and pay back over a set term. A HELOC is a variable-rate revolving credit line you can draw against, repay, and re-draw during the draw period, similar to a credit card. HELOCs offer more flexibility; home equity loans offer more payment predictability.
How much can I borrow with a HELOC?
Most HELOCs allow a combined loan-to-value (CLTV) up to 80% – 90%. If your home is worth $400,000 and you owe $220,000 on the first mortgage, an 85% CLTV HELOC could offer up to a $120,000 line ($400,000 × 85% − $220,000). Belong Lending pulls specific numbers for your property at pre-approval.
What credit score do I need for a HELOC?
Most HELOC programs require a minimum credit score of 680. Some lenders will go as low as 640 with strong equity and low DTI. Scores of 720 or higher generally get the best pricing and highest line amounts.
Is HELOC interest tax-deductible?
HELOC interest may be tax-deductible when the funds are used to buy, build, or substantially improve the home securing the loan (per the Tax Cuts and Jobs Act of 2017). Interest on HELOC funds used for non-home purposes is generally not deductible. Confirm your specific situation with a tax advisor.
What happens when the HELOC draw period ends?
When the draw period ends (typically after 10 years), the HELOC moves into the repayment period. You can no longer draw new funds, and the outstanding balance is amortized over the repayment period (usually 10 – 20 years). Your minimum monthly payment usually goes up at that transition.