Credit Policy
What is the minimum FICO for a home equity product?
660 FICO
*Any FICO under 730 does have a higher rate, please see the rate calculator.
What is the minimum and maximum amounts for a HELOC?
HELOCS (effective 5/09/26)
$25000 minimum
$350000 maximum for clients with 1st mortgage externally
$500,000 for U.S. Bank first mortgage clients and those without an existing first mortgage.
What is the minimum and maximum for HEILs?
Minimum is $25,000
Maximum is $500,000*
*LTV and FICO must qualify, check credit policy 301-10 pg 3 for more info.
True or False: You should provide the client with the income verification documentation list prior to inputting a loan or sending them the link to apply.
True, income verification documents need to be supplied and approved by DLS and underwriters in a timely manner, clients run risk of application timing out if they don't get documents in on time.
True or False: You are able to upload documents on the clients' behalf via Blend
True. You go into the application via Blend and in the documents tab can upload required documents.
What is the max LTV we can finance on a property?
80% of the property's value minus whatever is currently owed on that property
How many fixed rate options does a client have on a HELOC?
3 fixed rate options aka FROs
True or False: a HEIL gives the clients one lump sum with a set monthly payment
True: HEILs give one amount at loan closing that the clients will pay the same monthly amount each month.
Can clients prequalify for a home equity product?
Yes, our Invite to Apply does an automatic prequalification for clients! Once they are prequalified, there will be a link to continue through the full application process.
How do you access Blend?
You can access Blend via Fusion under Utilities and then select Home Equity Digital Application
False: Investment properties need to be discussed with Mortgage or Wealth Mgmt.
All properties must be on permanent foundation to qualify for a home equity product.
Can a client continue to utilize the HELOC if they locked in all 3 FROs?
Yes, a client can continue to use the variable line even if they have 3 FROs locked in, as long as they still have available credit to use. Example: A client has a HELOC for $200k, each FRO is locked in at $50k, and no balance currently on the variable line, this would mean that the variable line can be used for up to $50k.
Does a HEIL have a prepayment penalty (pay the loan off ahead of projected maturity date)?
No, we do not have a prepayment penalty on a HEIL.
Is there a prepayment penalty on a HELOC if a client closes it prior to maturity?
Yes, if closed within first 30 months there is a prepayment penalty of 1% or maximum fee of $500.
How do you access the loan closing documents?
You will receive an email 1-2 days before the schedule loan closing and will be brought to a Blend Settlement Agent Workspace (SAW) website that will allow you to download and print the closing documents.
What is the max debt to income for a home equity product?
50% DTI
True or False: When rates fluctuate, a borrower can unlock their current FRO and relock for a better rate.
True, clients have the flexibility to unlock and relock their FROs.
What are the minimum and maximum terms on a HEIL?
Minimum is 12 months
Maximum is 360 months (30 years)
Do clients pay closing costs on a home equity product done at a branch level?
No, clients do not pay any closing costs/appraisal fees, etc, on a home equity product done at branch level. Closing costs are typically only associated with products done by the mortgage department.
True or False: You must upload ink signed documents immediately after loan closing appointment into Blend Workspace
True, once the clients sign the closing documents, you will need to scan them via printer and upload to the Blend Settlement Agent Workspace for review.
What documents could the client be required to supply for a home equity product?
Last 2 years Tax Returns
Last 2 years W2s
Last 2 paystubs
Pension/SSI Award Letter
Property Tax Statement
Homeowner's Insurance Declaration
(This isn't a full list, full list can be accessed on Consumer Lending Resource Hub)
What is the draw period and repayment period on a HELOC?
There is a 10 year draw period on a HELOC and then an additional 20 year repayment of balance period.
Can we refinance a 1st mortgage?
No, 1st position HE Loan applications must not be submitted to refinance any mortgage liens. 1st position Mortgage Refinance applications must be referred to Mortgage.
How long is the recission period after clients' sign closing documents?
3 business days
True or False: You do not have to send the ink signed closing documents via Interoffice to Consumer Loans.
False, you must send the ink signed closing documents the day after the loan officially books. Typically four business days after loan signing appointment. You will send them via ShipExec.