HELOC Loans in Michigan
Home Equity Line of Credit (HELOC)
Michigan homeowners can unlock flexible funding through a HELOC (home equity line of credit), using their home’s value to support major financial goals. Whether you're upgrading a home in Ann Arbor, consolidating debt in Detroit, or funding tuition in Grand Rapids, a HELOC provides a revolving credit line to draw from as needed. These loans typically have variable interest rates and require 15%–20% equity, with a preferred credit score of 620 or higher. Home equity loans are also available for those seeking a one-time payout with fixed monthly payments. Michigan lenders include credit unions, regional banks, and online providers with competitive offers for both loan types.
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 in Michigan offers a flexible, revolving line of credit backed by your home’s equity. You can draw funds as needed during the draw period and repay them over time. A home equity loan, by contrast, delivers a lump sum upfront with fixed monthly payments. HELOCs are ideal for ongoing expenses like phased renovations or education costs. Home equity loans suit borrowers with defined, one-time expenses. Your choice depends on how you plan to use the funds and your repayment preferences.
How do HELOC rates work and what affects the interest rate?
HELOC rates in Michigan are typically variable and tied to the prime rate. Your credit score, debt-to-income ratio, loan-to-value ratio, and lender policies will all influence your actual rate. Some Michigan lenders offer fixed-rate conversion options, rate discounts for autopay, or introductory promotional APRs. Compare terms across local banks, credit unions, and fintech lenders to secure the best deal.
Can I qualify for a home equity loan in Michigan with low credit?
Yes, you may qualify for a home equity loan in Michigan with lower credit if you have strong equity and steady income. While most lenders prefer credit scores of 620 or higher, some will consider borrowers in the 580–620 range.Expect to provide additional documentation and pay a higher interest rate. Michigan-based credit unions and community banks may offer more flexibility than national lenders, especially for long-standing members.
How much equity do I need in my home to get a HELOC?
In Michigan, most lenders require you to have at least 15%–20% equity in your home to qualify for a HELOC. This means your mortgage balance should be no more than 80%–85% of the current appraised value.Your income, credit history, and debt-to-income ratio also play a role. Homes in appreciating areas like Oakland or Washtenaw County may help you qualify for higher credit limits.
Are home equity loans in Michigan better for large expenses?
Yes, home equity loans in Michigan are often preferred for major, one-time expenses such as home remodels, medical bills, or debt consolidation. These loans offer fixed interest rates and a clear, predictable repayment structure.If your needs are ongoing or you want the option to borrow multiple times, a HELOC might offer more flexibility. Choose based on how much money you need, when you need it, and how you prefer to repay.
What are typical equity rates and loan terms in Michigan?
In Michigan, HELOC APRs typically range from 7% to 10% based on credit score, equity amount, and the lender. HELOCs usually offer a 10-year draw period followed by a 10- to 20-year repayment phase.Home equity loans feature fixed rates and terms between 5 and 30 years. Michigan lenders may provide closing cost assistance, member discounts, or rate lock options—especially through credit unions. Compare offers carefully to find your best fit.
