FHA Home Equity Loans - Home Equity Line of Credit (HELOC)

FHA Guidelines for Home Equity Loans - Home Equity Line of Credit (HELOC).

A Home Equity Loan or Line of Credit may be right for homeowners who prefer:

With a Home Equity Loan, you get:

• The full loan amount up front

• A fixed interest rate

• A fixed monthly payment

• A predictable payoff schedule

A “HELOC“, or “Home Equity Line of Credit,” is a type of home loan that permits borrowing up to   pre-approved 'credit line' using their home's equity. This differs greatly from conventional home loans for many reasons. The main difference is that a FHA HELOC is basically a line of credit that allows the homeowner to borrow up to a pre-determined amount set by the mortgage lender, whereas with a conventional home loan, the amount borrowed is the total amount financed.

In other words, an FHA Home Equity Line of Credit (HELOC)  is much like a credit card  When you open a credit card, the bank sets a certain limit, such as $10,000. You don’t need to pay interest on the total amount, or even withdraw or spend any of the $10,000, but it is available if and when you need it.

A Home Equity Line of Credit (HELOC) allows you the flexibility to choose how you receive your money and use it any time you need it.