Have Questions?
1-800-954-2172A Home Equity Line of Credit (HELOC) is a flexible line of credit that uses your home equity to access up to $500,000* at great low rates.
The Prosper Difference:
Apply for a HELOC in minutes
Experience the Prosper Difference - Apply for a HELOC in minutes
1
INSTANT OFFER
See your interest rate and credit limit instantly, with no impact on your score.
2
EASY APPLICATION
Finish your online application in minutes – no paperwork needed.
3
FAST ACCESS TO YOUR MONEY
Loans funded and cash in hand in as few as 11 days.**
Michael M.
HELOC Customer
Janae S.
Personal Loan Customer
Stephen M.
Personal Loan Customer
You can use a HELOC for a variety of things
Home
Improvements
Debt
Consolidation***
Major
Purchases
Unexpected
Expenses
How a HELOC Works
Learn how a Home Equity Line of Credit is different
from other popular borrowing options
from other popular borrowing options
Learn how a Home Equity Line of Credit is different from other popular borrowing options
HELOC Calculator
How much home equity can you access?
GET UP TO $500,000* WITH A HELOC
Enter some basic information to see how much equity you could tap into
This calculator is for illustration purposes only, additional terms and conditions may apply.
Get more with a HELOC
Access Low Rates
Save more with variable rates as low as 4.74% annual percentage rate (APR).1
Utilize your home's value
Borrow up to 97.5% of your home's value, minus outstanding mortgage payments.3
Enjoy Financial Flexibility
A HELOC puts you in charge with the flexibility to make interest-only payments2, use as needed, and pay everything off early.
Manage your budget
Keep your project on schedule and your budget in check with fixed monthly payments.
Learn More
HELOC vs HELOAN: What’s the difference?
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Frequently asked questions (FAQs)
What's a HELOC?
A Home Equity Line of Credit (HELOC) is a line of credit you can access for a variety of things: debt consolidation***, home improvements, major purchases (appliances, cars, RVs, boats, etc.), and many other expenses.
It works much like a credit card. But, because it’s secured by your house, you may be able to access more money at lower interest rates than with a credit card or personal loan.
HELOCs give you flexibility in your monthly payments. You can even make interest-only payments during the draw period (up to the first 10 years of your HELOC).2
How is a HELOC through Prosper different?
HELOCs typically involve a time-consuming application and verification process—including a hard credit pull that impacts your credit score just to see your offer.
We’ve streamlined and securely digitized that process, empowering you to get a HELOC in only a few weeks! Better yet, you can see your instant, personalized offer without affecting your credit score.
What about variable rates?
A HELOC through Prosper has a variable rate, meaning the interest you pay could increase or decrease. Changes to this rate are calculated by adding the margin identified in your credit agreement to the current prime rate (https://www.wsj.com/market-data/bonds).
During the draw period, you can make interest-only monthly payments with a minimum payment of $100. Paying more than the interest you owe will enable you to borrow additional money during the draw period.
During the repayment period, your minimum monthly payment will be an amount necessary to repay the outstanding balance over the repayment period, based on the APR in effect at the start of this period. If rates increase after the repayment period begins, your monthly payment will increase so that the balance is fully repaid at maturity.
How can I use my HELOC?
You can use your HELOC for a variety of things including home improvements, debt consolidation, to pay off your mortgage, major purchases (appliances, cars, RVs, boats, etc.), and even miscellaneous expenses.***
Is a HELOC secured or unsecured?
A HELOC is secured by your house. This means your home acts as collateral for your line of credit in case you are unable to make your monthly payments (similar to how your house is collateral for a mortgage).
Because your line of credit is secured, the APR you receive may be lower than unsecured loans or credit cards.
How is my equity calculated?
Home equity is calculated by subtracting the amount of money you still owe on your house from the total value of your home. For example, if your home is valued at $100,000 and you owe $40,000 on your mortgage, your current equity is $60,000.
$100,000 (Home Appraised Value) - $40,000 (Mortgage Balance Owed) = $60,000 (Current Equity).
How is my max line calculated?
The maximum line amount, or credit limit, on your HELOC is based on how much equity you have in your home, your creditworthiness, your debt-to-income ratio, and your combined loan to value ratio or CLTV. CLTV is your overall mortgage loan debt expressed as a percentage of your home’s fair market value. If your home is worth $100,000 and you owe $40,000 on your mortgage, then your CLTV is 40%. When you get a HELOC through Prosper, your mortgage and HELOC combined can be worth as much as 97.5% of your home’s fair market value. Consider what that means for your line amount in the example below:
$100,000
Appraised home value
How much is your home worth? $100,000 in this example.
x
97.5%
Max CLTV: 97.5%
Multiply your home's estimated value by 97.5%
$97,500
-
$40,000
Potential credit limit
This is an estimate of how much you may be able to borrow.
$57,500
Remaining mortgage balance
Subtract whatever sum still owe on your mortgage. We’re using $40,000 in this example.