Home Equity Loans & HELOCs

Put the Value of Your Home to Work for You

Overview

A Home Equity Loan or Home Equity Line of Credit (HELOC) allows Virginia homeowners to access the equity they’ve built in their home. Whether you’re planning home improvements, consolidating debt, paying for education, or preparing for major expenses, tapping into your equity can be a smart financial tool.

Two Types of Equity Options

1. Home Equity Loan (Fixed Lump Sum)

• Borrow a single, fixed amount

   

• Fixed interest rate

   

• Predictable monthly payments

   

• Good for one-time expenses

   

2. HELOC (Revolving Line of Credit)

• Borrow only what you need

   

• Variable or hybrid rates

   

• Flexible access to funds

   

• Great for long-term or ongoing projects

   

Common Uses for Equity

• Home renovations

   

• Debt consolidation

   

• Emergency funds

   

• Tuition or education expenses

   

• Business investment

   

• Major purchases

   

Requirements

Typical guidelines include:

• Sufficient equity (often 15–20% remaining in the home)

   

• Steady income

   

• Reasonable debt-to-income ratio

   

• Acceptable credit history

   

Frequently Asked Questions

Is a HELOC interest-only at first?

Many HELOCs offer interest-only payments during the draw period, followed by full repayment.

Is the interest tax-deductible?

In many cases yes, if the funds are used for home improvements (check with your tax professional).

Does it affect my primary mortgage?

No — it’s a second lien, separate from your original mortgage.