HELOC Requirements: What You Need to Qualify

Thinking about a Home Equity Line of Credit (HELOC)? Here’s what lenders look for when determining your eligibility—and how you can check if you qualify in minutes.

Basic HELOC Requirements

To qualify for a HELOC, most borrowers will need:

• A minimum credit score of 600+
• Sufficient home equity (typically up to 80% CLTV)
• A stable income and employment history
• A qualifying debt-to-income (DTI) ratio
• An eligible property type

See if you qualify in minutes with no impact to your credit score.

Credit Score Requirements for a HELOC

Most HELOC programs require a minimum FICO score of 600, but higher scores may qualify you for:

• Lower interest rates
• Higher borrowing limits
• Better overall loan terms

Typical Credit Tiers:

• 720+ → Best rates and maximum borrowing power
• 640–719 → Strong eligibility
• 600–639 → Minimum qualifying range

How Much Equity Do You Need? (CLTV Explained)

Your borrowing limit is based on your Combined Loan-to-Value (CLTV)—the total of your mortgage + HELOC compared to your home’s value.

Most borrowers can access up to:

• 80% CLTV for primary residences
• Lower limits may apply based on credit score or property type

Example:

If your home is worth $500,000:

• Max CLTV (80%) = $400,000
• Existing mortgage = $300,000
• Potential HELOC = $100,000

Debt-to-Income (DTI) Requirements

Your DTI ratio measures your monthly debt payments compared to your income.

Most HELOC approvals require:

• DTI up to ~45%
• Higher DTI may be allowed with strong credit and reserves

Lenders may also allow debt consolidation to help improve your DTI.

Eligible Property Types

HELOCs are available for a variety of property types, including:

• Primary residences
• Second homes
• Investment properties (may have stricter guidelines)

Eligible property types include:

• Single-family homes
• Condominiums
• Planned Unit Developments (PUDs)

Loan Amount Requirements

Typical HELOC loan amounts include:

• Minimum loan amount: $25,000
• Maximum loan amount: up to $750,000 (based on qualifications)

Your exact amount depends on:

• Home value
• Mortgage balance
• Credit profile
• Income

How Fast Can You Qualify?

You can check your eligibility in just a few minutes with:

• No paperwork upfront
• No in-person appointments
• No impact to your credit score

See If You Qualify in Minutes

Find out how much you can borrow and what rate you qualify for—fast and easy.