HELON

What is a Home Equity Loan (HELON) – And Is It Right for You?

If you're a homeowner looking for a predictable, lump-sum loan based on the equity in your home, a Home Equity Loan (HELON) could be a smart financial move.

Unlike a HELOC, which offers a revolving line of credit, a HELON gives you a one-time disbursement with fixed payments and a fixed interest rate.

What is a HELON?

A Home Equity Loan lets you borrow a portion of your home's equity—usually up to 80–85% of your home's appraised value, minus what you owe on your mortgage.

You receive the loan amount upfront and pay it back in monthly installments, typically over 5 to 30 years.

Common Uses for HELONs:

• Home improvements (kitchens, bathrooms, additions)
• Medical expenses or emergency bills
• College tuition or educational costs
• Debt consolidation at a lower interest rate
• Major life events like weddings or family support

Qualifications – Do You Meet the Criteria?

To qualify for a HELON, we typically look for:

• Equity: We can go up to 95% of the home's value, with approved credit and income
• Credit Score: 620 or higher
• Debt-to-Income Ratio (DTI): Usually below 50%
• Stable Income: Proof of employment or consistent income
• Good Payment History: A solid mortgage and credit repayment track record

Benefits of a HELON:

• Fixed interest rate = predictable monthly payments
• Lump sum payout = great for large, one-time expenses
• Lower interest than personal loans or credit cards
• Potential tax deduction on interest (consult a tax advisor)