Another wholesale lender has added home-equity products to its menu, giving mortgage brokers more alternatives. The latest offering, from Homepoint, includes fixed-rate home-equity lines of credit.
The new HELOC product was announced Monday by the wholesale mortgage lender. The initial launch includes 38 states and the District of Columbia.
Homepoint HELOCs are available on single-unit properties that are owner occupied, second homes or investment properties.
The Ann Arbor, Mich.-based company said its HELOC is “essentially a 100 percent digital lending platform experience from application to closing, requiring minimal uploading of income and asset documents.” The standalone line of credit has a fixed interest rate determined at each draw based on a stated index plus a margin.
The line amounts range from $20,000 to $400,000. Draws are available for between two and five years, while the HELOC term is between five and 30 years. No draw may cause the combined loan-to-value ratio to exceed 85 percent. There are no prepayment penalties.
Homepoint says some borrowers with the right credit attributes can obtain a same-day approval and a five-business-day funding.
“Brokers are more than their title indicates — they are truly capable of serving as stewards for stronger overall financial health,” Homepoint President of Originations Phil Shoemaker stated in the announcement. “The Homepoint HELOC enables brokers to build stronger relationships within their communities by helping homeowners achieve their goals.”