Home / HELOC / The HELOC has to agree to stay in second place.
Updated September 2026
HELOC guide
The HELOC has to agree to stay in second place.
If you refinance the first mortgage and want the HELOC to survive, the HELOC lender must subordinate, meaning they agree to remain behind the new first. Some will. Some will not, or they will take weeks. If they refuse, the refinance has to pay the HELOC off, which can blow the cash and the LTV. Start that request before you lock a rate. A cash-out that pays both liens off avoids subordination and replaces everything. That is the right move when the HELOC lender is slow or the rate on the line is ugly.
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
| Path | Result |
|---|---|
| Subordination | HELOC stays. New first mortgage |
| They refuse | HELOC gets paid off in the refinance |
| Cash-out of both | One new loan. No second |
| Timing | Ask the HELOC lender first |
What we fund
- A first-mortgage refinance worth doing
- Owners who want the line to survive
- Files where paying the line off is actually simpler
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
How long does subordination take?
Often weeks. Do not assume a five-day close.
Does the HELOC balance count in the new loan?
If it is paid off, yes. If it subordinates, it stays a separate payment and still counts in combined LTV.
Can THEMONEYDOOR subordinate a line we did not service?
The servicer of that line decides. We can coordinate. We cannot sign their letter.
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.