HELOC Loans in Vermont
Home Equity Line of Credit (HELOC)
Vermont residents can access flexible financing through a HELOC (home equity line of credit), allowing them to borrow against the value of their homes during a multi-year draw period. Whether you’re remodeling in Burlington, funding education in Montpelier, or consolidating debt in Brattleboro, a HELOC offers revolving access to funds with variable rates. Most lenders require at least 15%–20% equity and a credit score of 620 or higher. Alternatively, a home equity loan provides a fixed-rate lump sum, ideal for large, one-time expenses. Vermont lenders include local banks, credit unions, and online providers offering personalized loan terms and competitive rates.
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 Vermont provides a revolving line of credit secured by your home’s equity, allowing you to draw funds as needed. In contrast, a home equity loan delivers a lump sum with fixed interest and monthly payments. Choose a HELOC for flexible, recurring costs or a home equity loan for one-time expenses.
How do HELOC rates work and what affects the interest rate?
HELOC interest rates in Vermont are usually variable and tied to the prime rate. Your rate will depend on credit score, loan-to-value ratio, income, and the lender’s policies. Some Vermont credit unions offer fixed-rate conversions or introductory rate discounts. Always compare offers to secure the best deal.
Can I qualify for a home equity loan in Vermont with low credit?
Yes, you may qualify for a home equity loan in Vermont with low credit, especially if you have significant equity and stable income. Most lenders prefer a credit score of 620 or higher, but some credit unions may consider scores in the 580–620 range. Expect more documentation and a higher interest rate.
How much equity do I need in my home to get a HELOC?
In Vermont, most lenders require 15%–20% equity to qualify for a HELOC. This typically means your mortgage should be no more than 80%–85% of your home’s appraised value. Lenders also assess income, credit, and debt-to-income ratio. Higher equity may unlock better terms.
Are home equity loans in Vermont better for large expenses?
Yes, home equity loans in Vermont are well-suited for large, one-time costs like remodeling, debt consolidation, or medical bills. They provide fixed interest rates and predictable payments. A HELOC may be more appropriate for ongoing or variable expenses.
What are typical equity rates and loan terms in Vermont?
HELOC APRs in Vermont typically range from 7% to 10%, depending on credit score, equity, and lender. Most HELOCs come with a 10-year draw period and a 10- to 20-year repayment window. Home equity loans offer fixed rates and terms from 5 to 30 years.
Looking beyond Vermont? Explore HELOC opportunities in New Hampshire , New York , and Massachusetts to find the best lender fit for your financial goals.
