Frequently Asked Questions
What do I need to Qualify?
Requirements will vary depending on the borrower, but we generally recommend the following:
- Credit Score greater than 700
- Verifiable income
- No bankruptcies in the past 4 years
- See Application Guide
Do I need an existing mortgage?
- Many Americans are using 1st Lien HELOCs to replace their mortgage, but no, a mortgage is not required.
Tax Deductions for Interest
We recommend consulting your tax adviser. In most cases, interest calculation is tax deductible.
How long will it take to get my loan?
We generally estimate and see a timeline of 45-60 days to closing from complete bank application.
Why haven't I heard of this?
Banks want one thing. . . to make money.
They make as much money as possible, as quickly as possible, and for as long as possible. Traditional mortgages successfully accomplish these things for the bank. For example, with a 30 year traditional mortgage the majority of your money goes to the bank during the first 12 years of your term and they get to keep you on the hook for 30 years! Not a bad deal for them.
Are you a bank? Or are you regulated?
We, as firstlienheloc.com, are not a bank or qualified lender. We are simply a platform for education and helping consumers find the best First Lien HELOC. When referring you to a bank for a first lien HELOC, we ONLY refer you to a Federally Insured Bank institutions. We aim to provide educational resources to qualified consumers so that they can benefit.
What if HELOCs rate increase?
- Contrary to popular belief, the rate isn’t really that important.
- The #1 benefit of a FLH, its not rate sensitive.
- A 7-8% interest heloc will outperform a 3% mortgage all day long when using a Velocity Banking.
Will my 1st Lien HELOC be closed through a title company?
Yes. Most of our lenders utilize national title companies and notaries for the closing and issuing of your title.
Is this an all-in-one HELOC?
Yes, the right 1st Lien HELOC structure is also known as an all-in-one HELOC or all-in-one mortgage. Remember, not every bank carries a 1st Lien HELOC with all of the needed features, so be wary when shopping.
Do I need to get a full appraisal?
All banks will require a full appraisal, which would give you a full valuation on your home, and therefor, what you can lend against.
1st Lien vs 2nd Lien?
A lien is a claim to the deed of the house. Mortgages generally take the 1st Lien position, and historically, a HELOC has taken a 2nd Lien position. This means that, should the loan become insolvent, the 1st Lien would reclaim finances first before the 2nd Lien lender would have any recompense.
How do I get my numbers?
If you’re looking to see what your budget, cashflow and loan would look like, you’ll want to sign up on site. We’ll connect you with a licensed loan officer who can help put together your specific details and plan.