HELOC Qualification Tools

Check if you qualify for a HELOC and estimate your borrowing power. Calculate LTV, DTI, and available equity before applying.

HELOC Qualification Requirements

To qualify for a Home Equity Line of Credit, lenders typically evaluate three key factors:

1. Loan-to-Value (LTV) Ratio

Most lenders require an LTV of 80% or lower, though some allow up to 90%. This means you need at least 10-20% equity in your home.

2. Debt-to-Income (DTI) Ratio

Lenders want to see that your total monthly debt payments (including the new HELOC) don't exceed 43% of your gross monthly income.

3. Credit Score

While requirements vary, most lenders prefer a credit score of 620 or higher. Better rates are available for scores above 700.

How Much Can You Borrow?

Your maximum HELOC amount is typically calculated as: (Home Value × 80%) - Existing Mortgage Balance