HOMEOWNERS · EDUCATION ONLY
A HELOC uses your home as collateral
“HLOC” was read as a home equity line of credit. There is no homeowner application on this site, and the business form will not take one.
What a HELOC is
A home equity line of credit is revolving credit secured by a home. If the agreement allows, you can draw, repay, and draw again during a draw period. A later repayment period may require principal as well as interest.
It is not a business line of credit, not an SBA loan, and not a merchant cash advance. This site does not suggest pledging a home when business financing is unclear.
Property and payment risk
- If you default, the lender may foreclose and you can lose the home.
- Many HELOCs have a variable rate. The payment can rise even if you do not draw more.
- The lender may freeze or reduce the line if the home’s value or your finances change.
- This page does not quote a rate, and it does not give tax advice.