Your home is more than just a place to live — it is one of your biggest financial assets. Over time, as you make mortgage payments and as property values rise, you build something called home equity. And what many homeowners don’t realize is that this equity can be used as a powerful financial tool to help you achieve major goals like renovating your home, paying off high-interest debt, covering education costs, or handling unexpected expenses.
That’s where a HELOC Loan Program comes in.
A HELOC Loan — also known as a Home Equity Line of Credit — allows you to borrow against the equity you’ve built in your home, giving you access to flexible funds when you need them most. Instead of receiving a lump sum, a HELOC works much like a credit card, offering a revolving line of credit that you can draw from over time.
At Garden City Mortgage Team, we help homeowners take full advantage of HELOC Loans in a smart, responsible way. Whether you’re planning a major home improvement project, consolidating debt, or simply want a financial safety net, our team is here to guide you through every step of the process with transparency and confidence.
Let’s explore everything you need to know about HELOC Loans and how they can work for you.
A HELOC Loan is a type of loan that allows homeowners to borrow money using their home’s equity as collateral. Instead of getting a one-time payout like a traditional loan, you receive a line of credit that you can access whenever you need during the draw period.
Think of it like this: your home equity becomes a flexible pool of funds that you can tap into for approved purposes.
Here’s how a HELOC Loan typically works:
• You are approved for a maximum credit limit based on your home’s value and how much equity you have
• During the draw period (often 5 to 10 years), you can borrow as much or as little as you need
• You usually only pay interest on the amount you actually use
• After the draw period ends, you enter the repayment period where you pay back the borrowed balance
One of the biggest advantages of HELOC Loans is their flexibility. You’re not forced to borrow a large amount upfront — instead, you use funds as needed, which can help you manage costs more effectively.
Because HELOC Loans are secured by your home, they often come with lower interest rates compared to credit cards or personal loans.
HELOC Loans are a great option for many homeowners, especially those who have built solid equity over time. Here are some common situations where a HELOC Loan makes a lot of sense:
If you’re looking to remodel your kitchen, add a new room, update bathrooms, or improve your property’s value, a HELOC Loan can provide the funding you need with favorable interest rates.
Credit card balances and personal loans often carry high interest rates. Many homeowners use HELOC Loans to consolidate debt into a single, lower-interest payment — saving money in the long run.
Major life costs like college tuition or medical bills can be overwhelming. A HELOC Loan offers flexible access to funds when you need them most.
Some homeowners open a HELOC Loan even if they don’t immediately need the money — simply to have access to funds for emergencies or future opportunities.
Some clients use HELOC Loans to fund business ventures or real estate opportunities (when appropriate), giving them access to capital without selling their home.
At Garden City Mortgage Team, we work with a wide range of loan programs every day. Here’s how HELOC Loans fit into the bigger picture:
FHA Loans are primarily used to purchase homes with lower down payments and flexible credit guidelines. HELOC Loans, on the other hand, are designed for homeowners who already own property and want to access their equity.
Conventional Loans are commonly used for home purchases or refinances. HELOC Loans are more flexible revolving credit options that allow you to borrow as needed.
VA Loans are designed for eligible veterans and military members to purchase homes with no down payment. HELOC Loans serve a different purpose — helping homeowners leverage equity after purchase.
USDA Loans help buyers in eligible rural areas purchase homes with little or no down payment. HELOC Loans are equity-based and used after you already own a home.
Jumbo Loans are used for higher-priced home purchases. HELOC Loans focus on tapping into equity rather than purchasing new property.
DSCR Loans are investment-focused and based on rental income. HELOC Loans are tied to your personal home equity.
Bank Statement Loans help self-employed borrowers qualify for mortgages using deposits instead of tax returns. HELOC Loans are equity-driven.
Bridge Loans are short-term solutions when transitioning between homes. HELOC Loans offer long-term revolving access to funds.
Down Payment Assistance programs help buyers purchase homes with minimal upfront costs. HELOC Loans are for homeowners who already have equity.
At Garden City Mortgage Team, we also offer:
Bank Statement Loans
Bridge Loans
Conventional Loans
Down Payment Assistance
DSCR Loans
FHA Loans
HELOC Loans
Jumbo Loans
USDA Loans
VA Loans
This wide range of options allows us to find the right financial solution for every unique situation.
While requirements can vary slightly depending on the lender and your financial profile, most HELOC Loans follow these general guidelines:
You typically need to have at least 15% to 20% equity in your home, though higher equity may qualify you for better terms.
Most lenders prefer a credit score of 620 or higher, though stronger credit can lead to lower interest rates and higher credit limits.
Lenders will verify that you have consistent income to support repayment.
Your overall monthly debt compared to your income should fall within acceptable limits — often around 43% or lower.
Your home will usually be appraised to determine its current market value and available equity.
HELOC Loans typically include:
• Variable or sometimes fixed interest rates (depending on program)
• Possible closing costs (often lower than traditional mortgages)
• Interest payments based on the amount used
One major benefit is that you only pay interest on what you borrow — not the full credit limit.
Our team at Garden City Mortgage Team will walk you through all costs clearly so you know exactly what to expect.
We make the process smooth and stress-free:
We discuss your goals, home value, and financial picture to determine if a HELOC Loan is right for you.
We gather income information, mortgage details, and other necessary paperwork.
An appraisal confirms your property’s value and available equity.
Once approved, your HELOC Loan is established and ready to use.
You can begin drawing from your line of credit whenever you need.
At Garden City Mortgage Team, we combine experience, transparency, and genuine care for our clients.
We don’t push one-size-fits-all solutions. Instead, we look at your full financial picture and help you decide whether a HELOC Loan — or another program like FHA Loans, Conventional Loans, VA Loans, or Down Payment Assistance — is truly the best option.
Our goal is to help you move forward with confidence and clarity.
Can I use a HELOC Loan for anything?
In most cases, yes — from home improvements to debt consolidation and major expenses.
Do HELOC Loans have variable interest rates?
Many do, though some fixed-rate options are available depending on the program.
How much can I borrow with a HELOC Loan?
This depends on your home’s value, existing mortgage balance, credit profile, and lender limits.
Is interest tax deductible on a HELOC Loan?
Interest may be deductible if the funds are used for home improvements — consult a tax professional for details.
Can I refinance my HELOC Loan later?
Yes. Many homeowners refinance or convert equity loans as their financial situation changes.
If you’ve built equity in your home and are looking for a flexible, affordable way to access funds, a HELOC Loan Program from Garden City Mortgage Team could be the perfect solution.
Whether you’re renovating, consolidating debt, or planning for the future — we’re here to help you make the smartest financial move.
We’d love to help you explore whether a HELOC Loan is right for you.
Business Name:
Garden City Mortgage Team
Loan Officer:
Shaun Utterson
Phone Number:
📞 (910) 444-9567
Email:
✉️ sutterson@emmloans.com
At Garden City Mortgage Team, we’re committed to helping you move forward with confidence. Contact us today and let’s find the right solution for you.
With Shaun Utterson Mortgage Services, you gain a dedicated partner committed to guiding you through every step of the home financing process. I combine deep industry knowledge with personalized service, ensuring that each loan solution aligns with your unique goals and financial situation. Whether you are purchasing your first home, refinancing, or investing in property, I provide clear communication, expert advice, and a seamless experience from start to finish. My focus is on building trust, delivering competitive solutions, and empowering borrowers to make confident decisions.
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Shaun Utterson
Mortgage Loan Originator
NMLS #2157825 | Company NMLS #2926
Corporate Address: 1950 Route 70 East, Suite 300, Cherry Hill, NJ 08003
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