A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by your home equity that lets you borrow up to 90% CLTV during a 10-year draw period, paying interest only on what you use. A home equity loan provides a lump sum at a fixed rate. Both can fund renovations, debt consolidation, or investments.
What is a HELOC & Home Equity?
A Home Equity Line of Credit (HELOC) lets you borrow against your home's equity as needed, drawing funds during a set period and paying interest only on what you use. A home equity loan provides a lump sum at a fixed rate. Both let you convert built-up equity into usable capital.
ASB Capital Loan Funding offers HELOCs and home equity loans up to 90% combined loan-to-value (CLTV). Use the funds for renovations, debt consolidation, education, or investment — with flexible draw periods and, in many cases, tax-deductible interest.
Program Highlights
- Borrow up to 90% CLTV
- Interest-only payment options during draw
- Flexible 10-year draw periods
- Fixed-rate home equity loan option
- Reusable credit line as you repay
- Tax-deductible interest (consult a tax advisor)
Who This Loan Is For
- •Homeowners funding major renovations
- •Borrowers consolidating higher-interest debt
- •Owners financing education or large purchases
- •Investors leveraging equity for new acquisitions
Typical Requirements
- •At least 15–20% equity in your home
- •Credit score typically 680+
- •Verifiable income and stable employment
- •Debt-to-income ratio under 43–50%
- •Property must be owner-occupied in most cases
- •Recent appraisal or automated valuation
Key Terms to Know
- HELOC
- A revolving line of credit secured by your home equity, letting you draw funds as needed during a draw period.
- Home Equity Loan
- A fixed-rate second mortgage that provides a lump sum, repaid in predictable monthly payments.
- CLTV (Combined Loan-to-Value)
- The total of all loans on the property divided by its value. HELOCs typically allow up to 90% CLTV.
- Draw Period
- The window (often 10 years) during which you can borrow against a HELOC and make interest-only payments.
See our FAQ and loan resources for more definitions and checklists.