HELOC & Second Mortgages
Sitting on equity with a low first-mortgage rate? Our HELOC — available as a 1st or 2nd lien — lets you tap cash without touching that rate, with draw periods up to 10 years and a 10-year interest-only phase.
A HELOC — home equity line of credit — is a revolving credit line secured by your home that lets you draw, repay, and draw again during a multi-year draw period. For borrowers sitting on equity with a low first-mortgage rate, it unlocks cash without refinancing that rate away, with an interest-only phase followed by a repayment period.
Key Takeaways
- Revolving line: draw, repay, and draw again during the draw period.
- Available as a 1st or 2nd lien.
- Tap equity without refinancing a low first-mortgage rate.
- Interest-only phase followed by a repayment period.
“Equity is only useful if you can reach it. A HELOC lets you tap it on your schedule — without refinancing away a low first-mortgage rate.”
— Vision One Mortgage, Inc. · NMLS #7861
Have a live deal? Get a scenario solution fast.
Send us the numbers — price, rent, credit — and a NonQM Rates specialist will structure it, typically same business day.
Submit Your Deal ScenarioReviewed by Vision One Mortgage, Inc. · NMLS #7861 · Last reviewed: October 2026
HELOC at a glance
Our HELOC is available as a 1st or 2nd lien — manual underwriting only; guidelines may not be commingled.
| Occupancy | Max CLTV | Min FICO |
|---|---|---|
| Owner Occupied | 85% | 740 |
| Owner Occupied | 80% | 700 |
| Owner Occupied | 80% | 680 |
| 2nd Home | 80% | 740 |
| 2nd Home | 75% | 680 |
| Investor | 75% | 740 |
| Investor | 70% | 700 |
| 2–4 Units | 65% max | 680+ |
| Warrantable Condos | 80% max | 680+ |
| Guideline | Terms |
|---|---|
| Line Amount | $20,000 minimum – $500,000 maximum; combined 1st & 2nd liens up to $3,000,000 |
| Credit | 680 minimum FICO · payment history 0x30x12, 1x30x24 · 4+ years housing-event seasoning |
| Max DTI | 50% |
| Draw Structures | 30-year or 20-year maturity with 3, 5, or 10-year draw periods · 10-year interest-only, then amortizing |
| Minimum Draw | Lines under $50k: 100% drawn at close · $50k+: 75% of max line or state-law minimum · subsequent draws 90 days after Note Date ($1,000 min) |
| Qualifying Rate | WSJ PRIME + Margin + 2.00% · floor 4.00% · lifetime cap 18.00% |
| Reserves | None required · no mortgage insurance |
| Related Product | Need a fixed second instead of a credit line? See Closed-End Seconds |
HELOC underwriting guidelines, May 15, 2026, Version 2.6. Subject to change — verified against current guidelines.
HELOC vs. closed-end second vs. cash-out refinance
Three common ways to tap home equity. New to these products? Start with what a Non-QM loan is.
| Feature | HELOC | Closed-End Second | Cash-Out Refinance |
|---|---|---|---|
| Your existing first mortgage | Untouched — the HELOC sits behind it | Untouched — a second lien | Replaced with a brand-new first mortgage |
| How you receive funds | Revolving line — draw as needed | One lump sum at closing | One lump sum at closing |
| Rate structure | Typically variable, tied to prime | Typically fixed | Typically fixed |
| Early payments | Interest-only phase available on some structures | Full principal + interest from day one | Full principal + interest on the entire new balance |
| Best for | Phased projects and ongoing access to cash | One-time expenses with a predictable payment | Borrowers whose current rate is no longer competitive |
| When it wins | You have a low first-mortgage rate worth keeping and costs spread over time | You want a fixed payment and a single payout | You can improve your overall rate or need the largest possible cash-out |
Sample comparison for illustration; guidelines vary by investor and are subject to change.
Equity-rich homeowners
- Homeowners with low first-mortgage rates they won't give up
- Borrowers who want draw-as-you-go flexibility for renovations or phased projects
- Investors pulling cash from one property to buy the next
- Homeowners funding renovations or debt consolidation
- Anyone who needs cash without a full refinance
Second-lien options
- Keep your first mortgage — available as a 1st or 2nd lien HELOC
- Draw periods of 3, 5, or 10 years on 20- or 30-year maturities
- 10-year interest-only period, then fully amortizing payments
- Up to 85% CLTV for owner-occupied (740 FICO); investment to 75% CLTV
- Lines from $20,000 to $500,000 — primary, 2nd home, and investment eligible
- Manual underwriting to Fannie Mae / Freddie Mac Seller Guides
Maximum CLTVs, minimum draws, and qualification rules vary by program and are subject to change. Check your eligibility or call 949-241-9489 for current guidelines. NMLS #7861.
How a HELOC can fund a phased project
Illustrative example — not a quote or commitment to lend.
A homeowner in California owns a home valued around $900,000 and owes $420,000 on a first mortgage with a low rate they don't want to give up. They're planning an accessory dwelling unit (ADU) that will be built in phases over the next year or so.
Instead of refinancing the entire first mortgage at today's higher rates, they open a HELOC behind it. In month one they draw roughly $80,000 to cover permits and the foundation — paying only on what they've drawn while the interest-only phase runs. As each construction phase wraps, they draw the next tranche from the same line instead of reapplying for new financing.
Had they chosen a closed-end second instead, they'd have received one lump sum and paid principal and interest on the full amount from day one — a better fit when the whole project cost is due upfront. This breakdown of closed-end second vs. HELOC walks through the trade-offs in more detail.
Who this HELOC isn't for
- Borrowers chasing the largest possible cash-out. A cash-out refinance of the first mortgage can sometimes unlock more total funds — at the cost of giving up your current rate.
- Foreign nationals, ITIN borrowers, LLCs, and non-occupant co-borrowers. This program's guidelines exclude these borrower types.
- Owners of manufactured homes, log homes, condotels, cooperatives, non-warrantable condos, or mixed-use properties. These property types are ineligible under this HELOC.
- Homes listed for sale in the last 6 months. Recently listed properties don't qualify.
- Borrowers who want a fixed payment from day one. If you'd rather have one predictable payment on a lump sum, a closed-end second is usually the better tool.
FAQ
HELOC or fixed second — which is better?
HELOCs offer draw-as-you-go flexibility (great for phased renovations); fixed seconds give a lump sum with predictable payments. We'll compare both for your goal — or read our closed-end second vs. HELOC breakdown first.
Will this affect my first mortgage?
No — a second lien is separate. Your first mortgage's rate, term, and servicer stay exactly as they are.
Can investors get seconds on rental properties?
Yes — investment properties are eligible up to 75% CLTV (740 FICO) or 70% CLTV (700 FICO). Investors in Texas and our other covered states use second liens to pull cash from one property toward the next. More on HELOCs for rental properties.
What's not eligible for this HELOC?
Per investor guidelines: foreign nationals, LLCs, ITIN borrowers, and non-occupant co-borrowers are ineligible, as are manufactured homes, log homes, condotels, cooperatives, non-warrantable condos, mixed-use properties, and properties listed for sale within the last 6 months.
Can I get a HELOC on a second home?
Yes — second homes are eligible under this program (see the Program Snapshot above for the current CLTV and FICO pairings). Vacation homes in any of our covered states qualify.
What does "0x30x12" mean in the credit requirements?
It's mortgage shorthand for your payment history: 0x30x12 means zero 30-day-late payments in the last 12 months; 1x30x24 means at most one 30-day-late in the last 24 months. The 4+ year housing-event seasoning means at least four years since events like a foreclosure or short sale.
Your path from scenario to funded
No black box. Here is exactly how a deal moves with us — and what happens after you close.
Submit your scenario
Price, rent, credit, timeline. Get a straight answer on program fit — typically same business day.
Know your numbers
This page is step two. By the time you apply, you already understand the structure — no surprises.
Apply with a short checklist
A focused application built around the document checklist on this page. Nothing extra, nothing missing.
Close — then what’s next
Milestone updates through closing. After you fund, we watch for refinance windows and your next acquisition.
Plan your exit before you enter
Every investor loan needs an exit strategy. Here are the paths investors typically take from here — we help you pick the right one before you commit.
- Repay and keep the line available
- Refinance into a fixed second or first
- Sell the property
Ready to run your numbers?
Every deal is different — submit your scenario and get a straight answer on program fit and structure, typically same business day.
Submit Your Deal ScenarioSee how much equity you can tap
60 seconds. No obligation. NMLS #7861.
