Home / HELOC / Equity is value minus the first mortgage. The line is smaller than that.
Updated September 2026
HELOC guide
Equity is value minus the first mortgage. The line is smaller than that.
Start with a value we can support. Subtract the first mortgage. What is left is equity, not a loan amount. A HELOC usually stops at 80 to 85% combined, including that first mortgage. A $500,000 house with a $250,000 first mortgage has $250,000 of equity. At 85% combined, the loans together can be $425,000, so the line screens near $175,000 before price, credit, and state. HELOC is only in GA, FL, TN, AL, NC, and SC. This math is an illustration, not a commitment.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| Example | Number |
|---|---|
| Value | $500,000 |
| First mortgage | $250,000 |
| 85% of value | $425,000 |
| Line that fits the math | About $175,000, if the file clears |
What we fund
- Owners who want a ceiling before they design a project
- A paid-off house, where the whole combined number is the line
- Rentals in the six states
What we still need. Short list.
- The first mortgage balance, rate, and whether it can stay.
- A value we can support, and the cash you actually want.
- The property state. HELOC is only GA, FL, TN, AL, NC, and SC.
- Income path: full doc, bank statements, or rent on a DSCR HELOC.
Questions
Is Zillow the value?
No. An appraisal or the program's value tool is. A website estimate is a guess.
Can I borrow 100% of the equity?
No. The combined cap leaves a cushion. 85% is the top of the usual screen, not a gift.
What if I am outside those six states?
We do not do the HELOC. A DSCR cash-out may still work if it is a rental.
Related
These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.