HELOC Loans in Virginia
Home Equity Line of Credit (HELOC)
Virginia homeowners can access flexible borrowing through a HELOC (home equity line of credit), which turns a portion of home equity into a revolving credit line. Whether you're remodeling in Richmond, consolidating debt in Virginia Beach, or funding education in Arlington, HELOCs offer ongoing access to funds during a draw period. These credit lines typically carry variable interest rates, and most lenders require 15%–20% equity and a credit score of 620 or higher. Alternatively, a home equity loan provides a lump sum with a fixed rate, best for one-time expenses. Virginia lenders include community banks, credit unions, and fintech lenders offering competitive terms and quick approvals.
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?
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Frequently Asked Questions
What is a HELOC and how does it differ from a home equity loan?
A HELOC in Virginia is a credit line secured by your home’s equity, allowing repeated draws during the draw period. A home equity loan gives you a single lump sum with fixed payments. Choose based on your funding needs and repayment style.
How do HELOC rates work and what affects the interest rate?
HELOC rates in Virginia are usually variable and follow the prime rate. Your rate depends on your credit score, income, home equity, and lender. Many Virginia lenders offer rate discounts for autopay or existing customers, and some allow fixed-rate conversions.
Can I qualify for a home equity loan in Virginia with low credit?
Yes, it’s possible to qualify for a home equity loan in Virginia with low credit if you have strong equity and reliable income. While most lenders prefer a credit score of 620+, some credit unions and local banks may work with scores in the 580–620 range. Expect higher interest rates and more documentation.
How much equity do I need in my home to get a HELOC?
Virginia lenders typically require 15%–20% equity to approve a HELOC. This means your mortgage balance should be no more than 80%–85% of your home’s appraised value. Higher equity, strong income, and good credit may improve your loan terms.
Are home equity loans in Virginia better for large expenses?
Yes, home equity loans in Virginia are ideal for large, one-time costs like home renovations or debt consolidation. These loans offer fixed rates and predictable monthly payments. A HELOC may be more flexible for ongoing or variable expenses.
What are typical equity rates and loan terms in Virginia?
In Virginia, HELOC APRs typically range from 7% to 10%, based on credit, income, and lender policies. Most lines include a 10-year draw period and a 10- to 20-year repayment term. Home equity loans offer fixed rates and 5- to 30-year terms.
Considering nearby options? Compare HELOC loan programs in Maryland , West Virginia , North Carolina , and Tennessee to evaluate competitive rates and flexible credit options across the region.
