HELOC

About this program

How it works — step by step

1. 1

   Take the 60-second check-in

   Five questions about your home equity, income structure, and what you're planning to use the funds for. The matcher compares HELOC, cash-out refi, and home equity loan to identify the best structure for your goals.

2. 2

   Establish your available equity

   Most HELOC programs allow you to borrow up to 80–90% of your home's appraised value, minus the outstanding mortgage balance. HELOC amount = (appraised value × LTV limit) − existing mortgage.

3. 3

   Licensed MLO reviews your equity position and income

   A Sunrise officer confirms the HELOC sizing, evaluates DTI with the new line, and confirms whether a HELOC or alternative structure better fits your use case — particularly if you need a lump sum (equity loan) versus flexible draws.

4. 4

   Underwriting complete, credit line opens

   HELOC underwriting is similar to a purchase loan — credit, income, and appraisal. Once approved, you can access funds up to your limit, repay, and draw again.

5. 5

   Eventual repayment

   The HELOC eventually enters full repayment on the outstanding balance. Some programs balloon; others fully amortize. Your loan officer confirms the specific structure before you close.

What it usually looks like

• Equity in an owner-occupied home — typically 15–20% equity floor after the HELOC
• Combined LTV (first mortgage + HELOC) typically ≤ 80–90%
• Credit score typically 620–680+ (better pricing at 720+)
• Income documentation: W-2 or two years of tax returns for self-employed
• DTI must support both the existing mortgage and the new HELOC payment
• Appraisal (desktop or full) to establish current market value

How it compares

Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.

Real scenarios

Who this fits

• Mortgage for an Established SMB Owner

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• Mortgage for a Business Owner Building a Rental Portfolio

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• Mortgage for a Home Services Business Owner

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Common questions

What is a HELOC?

A Home Equity Line of Credit — a revolving credit line secured by your home's equity. You borrow up to your approved limit, repay it, and borrow again. Payment structure varies by lender and program.

How much can I borrow with a HELOC?

Typically up to 80–90% of your home's appraised value minus your existing mortgage balance. If your home is worth $700K and you owe $350K, the maximum HELOC at 80% CLTV is $210K ($560K limit − $350K mortgage).

Is a HELOC rate fixed or variable?

Most HELOCs are variable rate — tied to a benchmark index (typically Prime Rate or SOFR) plus a margin. Rates reset periodically (often daily or monthly) as the index changes. Some lenders offer rate-lock options on a portion of the outstanding balance.

Can a self-employed borrower get a HELOC?

Yes — standard HELOCs require the same two-year tax-return documentation as a purchase loan. For self-employed borrowers whose tax income is depressed by write-offs, a Non-QM home equity alternative may qualify on bank statements instead.

Can I use a HELOC for business purposes?

Yes — many business owners use HELOCs for working capital, equipment purchases, or business expansion. Note that interest deductibility changes if the HELOC is used for non-home purposes; consult your CPA.

Is a HELOC better than a cash-out refinance?

Depends on your goals. If you need flexibility (ongoing, uncertain draws), a HELOC preserves your existing first-mortgage rate while adding a revolving line. If you need a large lump sum and your existing rate is higher than current rates, a cash-out refi replaces both.

What happens at HELOC maturity?

At the end of the full term (draw + repayment), any remaining balance is due. Most borrowers have paid the HELOC down by then. If not, you can refinance the balance into a new HELOC or home equity loan, or pay it off from other sources.