Digital HELOC questions, answered

A Home Equity Line of Credit lets you borrow against the equity you have already built in your home, the difference between what your property is worth and what you still owe on it. Unlike a traditional loan, a HELOC is revolving credit: you are approved for a maximum line amount, then draw only what you need, when you need it. You pay interest only on the balance you have actually drawn, not on the full line. As you pay the balance back down, that credit becomes available to draw again.

Our Digital HELOC offers lines from $50,000 up to $1,000,000, and qualified borrowers can access up to 90% of their property’s value. Your actual line depends on your combined loan-to-value ratio, your credit profile, your income documentation, and the property type. A quick example: on a Florida home appraised at $600,000 with a $300,000 first mortgage, 90% of the value is $540,000, which could leave roughly $240,000 of borrowing capacity, subject to full underwriting. Our HELOC calculators let you run your own numbers before you apply.

Rates start at 6.75%*, but nobody can quote your real rate from a website. Your pricing is set by your home’s value, your combined loan-to-value, your credit score, how much you draw at closing, and whether the property is a primary residence, a second home, or an investment property. HELOC rates are typically variable and move with a published index, so your payment can change over the life of the line. The fastest way to see a real number is to start an application, it takes a few minutes and a specialist will walk you through the pricing.

A cash-out refinance replaces your existing mortgage with a new, larger one and hands you the difference as a lump sum. A HELOC leaves your first mortgage exactly where it is and adds a separate line of credit behind it. For Florida homeowners who locked in a low first-mortgage rate several years ago, that difference matters a great deal, a HELOC lets you tap equity without giving up the rate on your primary loan. A HELOC is also more flexible: you draw in stages rather than taking the whole amount and paying interest on it from day one.

A HELOC runs in two stages. During the draw period you can pull funds from the line as often as you like up to your limit, and you pay interest only on what you have actually borrowed. Our Digital HELOC is offered on a 3-year or 5-year term, and payments are calculated on a 30-year amortization, which keeps the monthly payment low relative to the balance. Your loan documents spell out the exact schedule for the term you choose, and your specialist will walk you through both options before you sign.

HELOCs through this program are available on primary residences, second and vacation homes, and investment properties, as long as the property is located in Florida. Terms and maximum loan-to-value differ by occupancy type, a primary residence will generally qualify for more favorable pricing and a higher percentage of value than an investment property. We lend across the state; see our service areas for city-specific detail.

Yes. Self-employed Florida borrowers, business owners, and 1099 contractors often show a lower net income on their tax returns than they actually earn, which can make a conventional HELOC hard to qualify for. Our Bank Statement HELOC solves that by letting qualified borrowers document income with 12 months of bank statements instead of tax returns, with an expense factor as low as 25% on business accounts and a 660 minimum credit score. It is the same line of credit, underwritten on a different income picture. See the full Self-Employed HELOC page.

Not on the HELOC, which uses 12 months of bank statements only. Our Bank Statement Second Mortgage, a fixed-rate closed-end second, accepts a CPA-prepared P&L with 3 months of bank statements or your 1099s with 3 months of bank statements. Loans up to $750,000 at up to 89.9% combined loan-to-value.

Yes. The Digital HELOC is available on second homes and investment properties in Florida as well as primary residences, with loan-to-value limits that vary by occupancy. Investors whose income is mostly rents can use bank statement documentation. See the Investor HELOC page.

A HELOC is a revolving line with a variable rate: draw what you need, pay interest on the balance, and reuse the line as you repay. A second mortgage, also called a HELOAN, is a one-time lump sum with a fixed rate and a fixed monthly payment. Both sit behind your existing first mortgage and leave its rate untouched. Compare them side by side on the Bank Statement Second Mortgage page.

For the Bank Statement HELOC the minimum credit score is 660. For the standard Digital HELOC, underwriting looks at your credit score alongside your equity position, your debt-to-income ratio, your payment history, and the property type, and strength in one area can offset a weaker spot in another. Borrowers with more equity in the home generally have more room on credit. The most useful thing you can do is start an application and let a specialist tell you where you actually stand rather than guessing.

A HELOC has no required purpose. Florida homeowners most commonly use one for home renovation and repairs, hurricane hardening and impact windows, consolidating higher-interest credit card debt, funding a business, covering tuition, or keeping a reserve on standby for emergencies. Because the line is revolving, plenty of borrowers open one and leave it undrawn simply to have access to their equity if they need it.

The costs to open a line are the appraisal, credit report, title work and standard closing costs, which vary by county and by the size of the line. There are no prepaid escrow items: you do not fund property taxes or insurance at closing the way you would on a first mortgage. In many cases we can include the closing costs in your initial draw, so you pay nothing out of pocket at closing or funding. You will receive a written breakdown of every cost that applies to your file before you are asked to commit to anything.

No. This Digital HELOC program is offered only on properties located in the state of Florida. OnMortgage LLC holds Florida Mortgage Broker License MBR3482 and NMLS ID 1889418, and we work with Florida homeowners from the Panhandle through the Keys.

The application itself is fully online and takes minutes to start, there is no branch visit and no stack of paper. From there the timeline depends on how quickly documents come back, how fast the property valuation can be scheduled, and how clean the title comes through. Our Florida team reviews files promptly and keeps you updated at every step through closing, so you always know what is outstanding and who is waiting on whom. See how the process works step by step.

Click “Apply now” to complete our secure online application, or call 954-494-7288 to talk it through with a Florida mortgage specialist first. There is no cost to ask questions, and no obligation to move forward.