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How is HELOC For Seniors® Different from a Traditional Bank HELOC?

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If you’re a homeowner aged 62 or older and you’re looking for ways to tap into your home equity, chances are you’ve heard of a traditional Home Equity Line of Credit (HELOC). But what you may not know is that not all HELOCs are created equal.

Traditional options come with drawbacks that often disproportionately affect older homeowners. For those in or approaching retirement and facing a reduced or fixed budget, the right HELOC can make all the difference. Enter HELOC For Seniors®: a modern solution designed for your generation.

Tailored specifically for your needs, HELOC For Seniors® offers flexibility and support on your terms. With accessible funds and adaptable options to suit your lifestyle, you can tackle everything from home renovations and travel plans to medical costs and debt consolidation. Or maybe you simply want to more easily cover your day-to-day expenses and regular bills. Whatever your goals, HELOC for Seniors® can help you unlock a world of opportunities.

But how exactly is HELOC For Seniors® different from traditional bank HELOCs? Let’s break it down.

1. Monthly Payments That Stay Affordable

Traditional bank HELOCs often come with a honeymoon period—low payments for a few years, followed by a sharp increase when the repayment period begins. That can be a financial shock, especially if you’re retired.

HELOC For Seniors® flips the script by offering interest-only payments for the life of the loan as long as you meet your loan obligations and stay current on property taxes, homeowners insurance, and required home maintenance. That means:

  • No sudden, unaffordable spikes
  • No forced transition to high principal-and-interest payments
  • Just predictable, manageable monthly costs

Key Advantage: Keep more control over your budget without compromising your lifestyle.

2. Fixed Rate Per Draw1 = No Surprises

Traditional HELOCs typically have variable rates, which means your monthly payments can change—often dramatically—as interest rates rise. With HELOC For Seniors®, every draw you take is locked in at a fixed rate.1 So you can count on stability and consistency, even if market rates climb.

Key Advantage: Enjoy peace of mind knowing your payments won’t spiral out of control.

3. Easier to Qualify—Even on a Fixed Budget

Bank HELOCs often come with tight underwriting requirements that favor full-time income earners with strong cash flow. HELOC For Seniors® is different:

  • Flexible qualification standards
  • Designed for homeowners with sufficient equity—even those on fixed retirement income

Key Advantage: More inclusive and accessible requirements for older homeowners.

4. Fast, Fully Online Application Process

Traditional HELOCs can take weeks to close—and often require in-person appraisals and paperwork-heavy processes. HELOC For Seniors®:

  • Has a 100% online application
  • Offers e-closing
  • Does not require an in-person appraisal
  • Can fund in as few as 5 business days2

Key Advantage: Apply from the comfort of your home and get access to your funds faster.

5. True Financial Flexibility

Bank HELOCs usually limit your access and may not offer full disbursement upfront. With HELOC For Seniors®, you can get up to $400,000³ at a fixed rate per draw,1 and the ability to access your line again and again (up to your credit limit).

You can redraw funds (maximum 25 draws) for up to 10 years once you’ve initially borrowed 80% or more. Even better, your loan can be structured as a first or second lien, so there’s no need to pay off an existing mortgage to get started.

Key Advantage: It’s your equity—use it your way, when you need it most.

For an overview of all the key features that separate HELOC For Seniors® from the pack, here’s a quick side by side comparison:

HELOC For Seniors®Traditional Bank HELOC
Interest-only payments4✔X
Fixed rate on each draw1✔X
100% online application✔X
Less-stringent income requirements✔X
Full disbursement at funding✔X
Funding in as few as 5 days2✔X
No in-person appraisal✔X
Automated underwriting✔X
e-Closing option✔X

When it comes to choosing between the two, the differences aren’t just technical—they’re personal. Because how your HELOC works matters just as much as what it offers.

Ready to See the Difference for Yourself?

You’ve worked too hard to spend your retirement stressing over your finances. Discover how HELOC For Seniors® can help you unlock your home’s potential so you can live life to the fullest. Learn more and apply online today.

P.S. Checking your rate is risk-free and won’t hurt your credit score!5

1 HELOC For Seniors® is an open-end product where a minimum of 80% and up to a maximum of 100% of the full loan amount (less the origination fee and costs) must be drawn at closing. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the 10 year draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.

2 Approval may be granted in ten minutes but is ultimately subject to verification of income, employment, and property value, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing or require a waiting period prior to closing.

3 Loan amounts range from a minimum of $50,000 to a maximum of $400,000. Your maximum loan amount may be lower than $400,000, and will ultimately depend on your home value, lien position, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.

4 You must meet your loan obligations, and stay current with property taxes, insurance, and maintenance.

5 To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

It's time to explore a new way to unlock financial flexibility and peace of mind.

Ready to check your rate and see what’s possible?

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*To check rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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