HELOC Loans in Arizona

Home Equity Line of Credit (HELOC)

Arizona homeowners can take advantage of rising property values by using a HELOC to access their home’s equity. A HELOC (home equity line of credit) offers flexible borrowing, allowing you to draw funds as needed during a set period. This makes it an attractive option for home renovations, debt consolidation, or covering educational expenses. In Arizona, strong housing markets like Phoenix, Scottsdale, and Tucson provide excellent opportunities to leverage equity. Most lenders require 15%–20% home equity and a solid credit profile. Depending on your goals, you may also consider a fixed-rate home equity loan instead. Arizona offers a wide range of options from national lenders, credit unions, and regional banks.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC is a revolving line of credit secured by your Arizona home’s equity, which you can draw from as needed during the draw period. Unlike a home equity loan that provides a one-time lump sum, a HELOC gives you ongoing access to funds. Home equity loans typically have fixed rates and structured payments, while HELOCs often come with variable rates and more flexible terms. If you're undertaking phased renovations or want a financial safety net, the flexibility of a HELOC may better suit your needs.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Arizona are usually tied to the prime rate, and they vary based on your credit score, income, loan-to-value ratio, and the lender’s underwriting criteria. While variable rates are standard, some Arizona lenders offer fixed-rate conversions or hybrid models. Credit unions in cities like Phoenix and Tucson may offer special promotions or lower APRs for qualified borrowers. Location, property type, and your banking relationship can also influence your interest rate. Shopping around can uncover better loan terms and fee structures.

Can I qualify for a home equity loan in Arizona with low credit?

Qualifying for a home equity loan in Arizona with low credit is possible, especially if you have strong home equity and consistent income. Most lenders prefer scores of 620 or higher, but some will consider borrowers in the 580–620 range with added documentation or higher interest rates. Local credit unions and alternative lenders may be more flexible than traditional banks. You’ll likely need to verify income and provide a detailed debt profile. It’s important to compare multiple lenders to find one offering home equity or HELOC products that fit your situation.

How much equity do I need in my home to get a HELOC?

To qualify for a HELOC in Arizona, most lenders require you to have at least 15%–20% equity in your home. Your mortgage should not exceed 80%–85% of your home’s appraised value. In hot markets like Phoenix and Flagstaff, rising home values may increase your borrowing power. Lenders will also assess your credit score, income, and overall financial profile. Tools like home equity calculators can help you estimate your available line. If you're looking to tap into equity, maintaining a strong credit score and low debt-to-income ratio will improve your chances.

Are home equity loans in Arizona better for large expenses?

Yes, home equity loans in Arizona are ideal for large, one-time expenses like home remodeling, solar panel installation, or consolidating high-interest credit cards. These loans offer fixed interest rates and predictable monthly payments. For borrowers who need stability and know the total amount required upfront, a home equity loan is often the better choice. However, if you're unsure how much you’ll need or plan to borrow over time, a HELOC offers greater flexibility. Arizona homeowners often compare both to choose the option that best fits their financial goals.

What are typical equity rates and loan terms in Arizona?

In Arizona, HELOC and home equity loan rates usually range from 7% to 10% APR, depending on your credit score, lender, and available equity. Many lenders offer a 10-year draw period followed by a 10- to 20-year repayment term. Home equity loans typically have 5- to 30-year fixed terms. Arizona-based credit unions sometimes offer more favorable rates than national banks, especially for long-term members. As always, comparing offers across lenders is the best way to secure optimal rates and terms.

Planning beyond Arizona? Look into HELOC options in California and New Mexico...