HELOC Loans in California
Home Equity Line of Credit (HELOC)
California homeowners can use a HELOC (home equity line of credit)
to access equity in a flexible, efficient way. A home equity line of credit lets you borrow as needed—ideal for renovations, tuition, or paying down debt. With California’s high property values, many homeowners have significant equity to tap into. A HELOC works like a credit card but is secured by your home, typically offering lower interest rates. Most lenders in California require 15%–20% equity and a credit score of 620 or higher. Home equity loans offer fixed-rate alternatives if you prefer a lump sum. Whether you're in Los Angeles, San Diego, or the Bay Area, California banks, credit unions, and fintech lenders offer competitive equity-based products.
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
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a HELOC and how does it differ from a home equity loan?
A HELOC, or home equity line of credit, is a revolving credit line secured by your California home. It allows you to borrow money as needed during the draw period, then repay it during the repayment period. In contrast, a home equity loan provides a one-time lump sum with a fixed interest rate. HELOCs offer flexibility and interest-only payments during the draw period, making them ideal for ongoing expenses. If you need a large, upfront amount and prefer consistent monthly payments, a home equity loan may be a better option.
How do HELOC rates work and what affects the interest rate?
HELOC rates in California are generally variable and tied to the prime rate. Your personal interest rate depends on your credit score, loan-to-value ratio, income, and whether you choose a fixed-rate conversion option. California lenders may offer promotional rates or fixed-rate segments. Location and property type can also affect loan pricing. Comparing multiple lenders—banks, credit unions, and online platforms—can help you find the best APR and loan structure for your financial goals.
Can I qualify for a home equity loan in California with low credit?
Yes, some California lenders allow borrowers with low credit scores to qualify for home equity loans, though higher rates and stricter terms may apply. Most lenders prefer credit scores above 620, but exceptions can be made if you have strong income, assets, and substantial equity. Credit unions and non-bank lenders may be more flexible than traditional banks. Expect to provide detailed documentation of your income and debts. If your home is located in a high-equity market like San Jose or Irvine, that can work in your favor.
How much equity do I need in my home to get a HELOC?
In California, most lenders require at least 15%–20% equity to qualify for a HELOC. Your mortgage should not exceed 80%–85% of your home’s appraised value. With high property values across many California regions, even modest homeowners often have enough equity to qualify. Lenders will also look at credit, income, and debt-to-income ratios. Using a home equity calculator can help you estimate your eligible credit line before applying.
Are home equity loans in California better for large expenses?
Yes, home equity loans in California are often ideal for large expenses such as full-scale remodels, medical bills, or debt consolidation. These loans offer fixed interest rates, lump-sum payouts, and predictable monthly payments. If you need to access all your funds at once and prefer budgeting stability, a home equity loan may suit you better than a HELOC. However, for phased or recurring expenses, HELOCs provide more borrowing flexibility. Many California homeowners evaluate both options depending on their financial plans.
What are typical equity rates and loan terms in California?
In California, HELOC rates generally range from 7% to 10% APR, depending on your credit profile, equity position, and lender. Most HELOCs include a 10-year draw period and a 10- to 20-year repayment period. Home equity loans often offer 5- to 30-year terms with fixed rates. Lenders throughout California—including banks, fintech companies, and credit unions—offer promotional rates and rate-lock features. Always compare offers to find the best terms for your unique situation.
