HELOC Loans in Washington
Home Equity Line of Credit (HELOC)
Washington homeowners can access flexible financing through a HELOC (home equity line of credit), using built-up home equity to fund remodeling, tuition, or debt payoff. Whether you're renovating in Seattle, paying medical expenses in Spokane, or upgrading a property in Tacoma, a HELOC allows you to draw funds as needed. These lines typically require 15%–20% equity and a credit score of 620 or higher, with variable interest rates tied to the prime rate. Alternatively, a home equity loan offers a one-time lump sum with fixed payments, ideal for large, planned expenses. Lenders in Washington include credit unions, regional banks, and fintech companies offering competitive APRs and low fees.
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 Washington is a revolving line of credit secured by your home. You can borrow against it during the draw period and repay as you go. A home equity loan gives you a lump sum up front with fixed interest and monthly payments.
How do HELOC rates work and what affects the interest rate?
HELOC rates in Washington are usually variable and based on the prime rate. Your rate depends on credit score, home equity, income, and lender. Some lenders offer fixed-rate conversion options, autopay discounts, or promotional intro APRs.
Can I qualify for a home equity loan in Washington with low credit?
Yes, Washington homeowners with low credit may still qualify for a home equity loan if they have strong equity and steady income. While 620 is the preferred score, some credit unions or local lenders may work with scores in the 580–620 range. Expect higher rates and stricter documentation.
How much equity do I need in my home to get a HELOC?
Most Washington lenders require 15%–20% equity to approve a HELOC, translating to a loan-to-value ratio of 80%–85% or better. Credit score, income, and existing debt are also factored into approval.
Are home equity loans in Washington better for large expenses?
Yes, home equity loans in Washington are ideal for large, one-time expenses such as home renovations or medical bills. These loans provide fixed interest rates and predictable monthly payments. For ongoing costs, consider a HELOC instead.
What are typical equity rates and loan terms in Washington?
In Washington, HELOC APRs generally range from 7% to 10%, depending on your credit, income, equity level, and lender. Most HELOCs have a 10-year draw period and 10- to 20-year repayment term. Home equity loans feature fixed rates and terms from 5 to 30 years.
Comparing lenders beyond Washington? Look into HELOC loan programs in Oregon , Idaho , California , and Montana to explore regional equity lending solutions.
