Home Equity Loans
Tap into your home's equity with a fixed-rate lump sum — use it for renovations, debt payoff, education, or anything you need.
Program Overview
A home equity loan is a second mortgage that allows you to borrow against the equity you've built in your home. You receive a lump sum at closing with a fixed interest rate and fixed monthly payments. Home equity loans are ideal when you need a specific amount for a defined purpose, like a home renovation, medical expenses, or debt consolidation.
Who Is This Loan For?
- ✓ Homeowners with at least 15–20% equity
- ✓ Borrowers who need a lump sum for a specific purpose
- ✓ Homeowners who want fixed payments (not a revolving line)
- ✓ Borrowers consolidating high-interest debt
Key Benefits
Fixed Rate & Payment
Predictable payments with a rate that never changes — unlike a HELOC.
Lump-Sum Access
Receive the full loan amount at closing for immediate use.
Potential Tax Benefits
Interest may be tax-deductible if used for home improvements (consult your tax advisor).
Keep Your First Mortgage
No need to refinance your existing mortgage — add the equity loan as a second lien.
Qualification at a Glance
General Requirements
- 15–20% equity minimum after the new loan
- Credit score of 620–680+
- DTI including both mortgages up to 43–50%
- Stable income verification required
- Property appraisal required
Advantages
- ✓ Fixed rate and payment
- ✓ Lump-sum funding
- ✓ Keep your existing first mortgage rate
- ✓ Potential tax deductibility
- ✓ Lower rates than personal loans or credit cards
Tradeoffs to Consider
- ↔ Your home is collateral
- ↔ Adds a second monthly payment
- ↔ Closing costs apply
- ↔ Less flexible than a HELOC (no revolving access)
- ↔ Maximum LTV limits how much you can borrow
Common Scenarios
$50K Kitchen Renovation
A homeowner borrows $50K against their equity at a fixed rate to fund a kitchen remodel, avoiding higher personal loan rates.
Debt Consolidation
A borrower with $40K in credit card debt at 22% APR takes a home equity loan at 8.5% fixed to consolidate and save thousands annually.
Documents Typically Needed
- Income verification (pay stubs, W-2s, tax returns)
- Property appraisal
- Existing mortgage statement
- Bank statements
- Government ID
Frequently Asked Questions
Most lenders allow a combined LTV (first mortgage + equity loan) of up to 80–90% of your home's appraised value. If your home is worth $500K and you owe $300K, you may be able to borrow up to $100K–150K.
Broker Disclosure: Scout Financial Group Inc DBA Airus Lending is a licensed mortgage broker (NMLS #2187418) and does not make loans or credit decisions. Airus Lending works with multiple wholesale lenders to help borrowers compare available loan options. Final approval depends on the lender, automated underwriting findings, documentation, state requirements, and overall borrower profile. Not all applicants will qualify.