Home Equity Line Of Credit In Florida-HELOC Mortgage Florida

Florida HELOC Cash Out Mortgage Lenders- HELOC Florida
Standalone Florida Home Equity Line Of Credit In Florida, Florida cashout HELOC proceeds can be used for Florida home improvement, major purchases, including automobiles and other real estate, etc. Min 640+ Credit Condos HELOC Florida no questionnaire.

Florida HELOC Mortgage Product Description

 Eligible Properties Include: Single Family, 2-4 units, PUDs, Florida Condos, Townhomes, Villas
 HELOC Term: 5-year interest-only draw; 25-year repayment
 Maximum HELOC Loan Amount: $750,000
 Minimum HELOC Loan Amount: $25,000
 Maximum DTI: 680+ Credit =  50% DTI or   640-679: =  45% Max DTI

Apply on the top right of this website. Or call me for details. Thank you 

Florida HELOC Cashout Property Types:

 SFR, 2-4 units, PUDs, Condos, Townhomes, Villas, 
 Fee Simple or Inter Vivos Revocable Trust eligible as Title Holder; LLC ineligible as Title
Holder
 Property value must be supported as follows:
o HELOC Cash Out Florida Loan Amounts ≤ $500,000: AVM
o HELOC Cash Out Florida Amounts >$500,000: Full Appraisal required
 Minimum Property Value is $100,000
 Properties located in a FEMA disaster declaration area require a Property Condition Report
 Properties currently listed for sale or listed in the last 60 days are ineligible

Ineligible HELOC Property = Not Eligible Types

Co-ops, Commercially Zoned Real Estate, Multi-family (5+) real estate, Manufactured Housing,
Earth or Dome homes, Timeshares, Log Homes, Houseboats, Timeshare, Leaseholds, Ground Lease,
Mixed-use Properties and Properties currently listed for sale or listed in the last 60 days.

General HELOC Application Requirements

Co-Borrowers are permitted and must be vested on title
 Non-Occupant Co-Borrowers are allowed (not eligible in TX)
o Borrower 1 must be vested on the title
o The occupying borrower must receive income
 Changes are allowed after the loan application is completed in certain instances.

What’s A  HELOC?

A HELOC, or Home Equity Line of Credit, is a revolving line of credit that allows you to borrow against the equity in your home or condo, similar to a credit card, but with your home as collateral. You can withdraw cash as needed up to a specific limit during a draw period, making only interest payments on what you’ve borrowed. After the draw period, a repayment period begins, during which you pay back the borrowed principal plus interest.

Credit HELOC Approval Requirements

 Primary wage earner borrower must have a minimum 640 credit score
 Credit is valid for 90 days from the time of closing
 Maximum DTI Per Credit: 680+ Credit =  50% or   640-679: =  45%

HELOC Draw And Terms Structure

 Minimum 75% initial draw disbursed at closing
 5-year interest-only draw period; 25-year repayment period (fully amortizing)
NOTE: Tennessee Exception: 5-year interest-only; 10-year repayment period (fully
amortizing)

HELOC Employment Verification

 Employment verified via The Work Number, TRUV or Plaid (Third-Party Vendors)

HELOC Fees /Closing Cost 

 Most fees and closing costs are netted against loan proceeds at closing
 Fees/closing costs netted against the loan proceeds include: one-time origination fee and
nominal costs for credit report, loan document prep, notary, recording fees, etc.

HELOC Cash Out Income Qualifying

 Maximum DTI: Fico 680+: 50%       640-679: 45%
 Wage earner or self-employed income eligible
 Borrowers may validate income using one of the following options:
o Wage Earner Borrowers:
 The Work Number, OR
 Link income information from the employer payroll system (TRUV), OR
 Upload two most recent pay stubs and most recent W-2 for Self-employed Borrowers:
 Link bank account information (Plaid), OR
 Upload the prior two years’ tax returns

HELOC Late Payments, Collections, Derogatory Accounts

 Mortgage/rent history requires 0x30 in the past 6 months and a maximum of 1×30 in the last 12 months
 Past-due consumer debt can be no more than 90 days past due at closing. Debts > 90
days must be paid off prior to closing
 No bankruptcy in the last 4 years
 No foreclosure proceedings in the last 7 years
 No charge-off, short payoff, deed-in-lieu, short sale, or pre-foreclosure of any mortgage in the last
4 years
 Judgments and tax liens must be paid off prior to or at closing
 Collections may remain open as follows:
o < 24 months old with a maximum balance of $2,000
o 24 months old with a maximum balance of $2,500 per occurrence
o Charge-offs and collections that exceed the above balances must be paid in full prior to closing
 Medical collections may remain open regardless of balance

Florida HELOC Debt Consolidation

The Standalone Digital HELOC allows a 50% DTI max. Borrowers who exceed 50% DTI, or who desire to
consolidate debt, have the option to select tradelines to pay off during the completion of the Digital HELOC
application

DTI is calculated twice before the borrower starts the Digital HELOC Application:
o First, at the beginning of the Prequalification using Inputs only.
o Second, at the end of the Prequalification Application using API Verification that is available.
(i.e. Soft Pull data including monthly debts, mortgage payment and score)

DTI is calculated the third and final time as the borrower completes the Digital HELOC Application:
o After the offer has been accepted, the borrower completes the Valuation API (as applicable),
and the Income API using TWN or Plaid, CRA.
o The final DTI calculation happens after verifications are complete (inclusive of hard pull,
income calculation, and more).
-After Income and Credit Verification

Once the hard credit pull is completed, the borrower is presented with the option to lower their DTI
by paying off debt(s).
o The borrower will click the selection box to the left of the tradeline they want to pay off with
funds from the Digital HELOC. DTI will recalculate based on selection(s).
o Once complete, the borrower will select, “Confirm and Proceed to Next Step”
-Lower DTI by Paying Off Debt(s) from Tradelines-

Debt Consolidation and Itemized Disbursements

A Pay Off Statement may be requested when paying off an existing HELOC.
• The Addendum to the HUD-1 displays the itemized list of disbursement(s) based on the tradelines
selected by the borrower for payoff.
• The itemized tradelines on the Addendum are paid with the proceeds of the Digital HELOC.
-Itemization of Additional Disbursements

Note: The offer to pay off tradelines to lower the DTI will be presented as the borrower completes their
Digital HELOC application only when the MLO selects Debt Consolidation as Use of Proceeds, or when the
DTI exceeds 50% during the Prequalification prescreening process.

Florida HELOC  General Overview

 The Standalone Digital HELOC offers the following features:
o 75% minimum initial draw required at closing
o Eligible for free and clear properties; HELOC can go in first lien position
 HELOC proceeds can be used for Florida home improvement, major purchases including automobiles and other real
estate, etc.
 Installment debt paid down prior to closing can be excluded from the DTI ratio
NOTE: Installment debt with ten (10) or fewer monthly payment may be excluded
 Revolving accounts are allowed to be paid at closing to exclude the payment from the DTI ratio
 The Digital HELOC Portal will:
o Allow the borrower to apply and view application status
o Allow the broker, broker point of contact, and additional designees to view status and obtain reports
o Provide disclosures as follows:
 Broker disclosures are sent to the borrower to complete

HELOC Interest Rates in Florida

 Variable rates based on Prime + Variable Margin; rates are generally 250-500 bps higher than prevailing first
mortgages
Fees
 There are nominal closing costs paid to third parties which are netted against the loan amount
General Assistance
 Borrowers and Brokers can request assistance or status related questions using one of the following
communication methods:

General Eligibility Requirements

HELOC Florida Eligibility Requirments 

Available Loan Terms
 HELOC: 5-year Interest Only draw period with 25-year repayment amortization (TN only: 10-year repayment
amortization)
o Minimum 75% initial draw required at closing
Loan Amount
 Minimum loan amount: $25,000
 Maximum loan amount: $750,000
Max DTI
 680+: 50% maximum
 640-679: 45% maximum

Eligible States Florida

Eligible Borrowers
 U.S. citizens
 Permanent Resident Aliens
 Non-Permanent Resident Aliens (with established U.S. Credit)
NOTE: Individuals classified under Diplomatic Immunity, Temporary Protected Status, Deferred Enforced
Departure or Humanitarian Parole are not eligible
Property Types
 Eligible: Single Family Residences, 2-4 units, PUDs, most Condominiums
Occupancy Types
 Available on primary, second home and investment properties
 Investment properties limited to 10 financed properties
Credit
 Prior to submitting a request, the Broker must have an indication of the borrower’s FICO
 At the time the borrower applies, a soft credit check is performed
 A hard credit check is performed at the time the borrower accesses their application
 Credit is obtained from Experian (FICO 8)
o The borrower must contact Experian directly to inquire about the credit information, to file a dispute, or
for issues with the credit score

HELOC Employment/Income Verification

 Employment is verified by The Work Number, TRUV or Plaid (third-party vendors)
 Borrower Income: Income will be validated by one of the following options within the online application. The
borrower must select one of the following:
o Wage Earner Borrowers
 The Work Number, OR
 Link income information from the employer payroll system (TRUV) OR
 Upload two most recent pay stubs and the most recent W-2
o Self-Employed Borrowers
 Link bank account information (Plaid), OR
 Upload prior two years’ tax returns
Property Value Determination
 Loan Amounts ≤ $500,000: AVM with 80 Confidence Score and .20 FSD
 Loan Amounts >$500,000: Full Appraisal required
 Properties located in a FEMA disaster declaration area require a Property Condition Report

HELOC Closing Property Ownership

 Closing docs may be drawn as Sole Ownership, Joint, or Revocable Trust; LLCs are ineligible
 The borrower must be the legal owner of the property as verified per county records
 When vesting in a Revocable Trust, the borrower must provide a complete copy of the Trust Agreement for
Review the Power of Attorney (POA)
 Borrowers requesting to close via a POA are reviewed on a case-by-case basis

HELOC Notary Process

 Online video notary sessions are required in counties that permit electronic notarization. If the borrower is in a For a 
county that requires a “wet signature”, a notary appointment will be arranged
 To interact with the eNotary, the following requirements apply:
o Borrower will need a device that has a camera and a microphone
o Borrower must provide a valid, legible photo ID (acceptable forms include: Driver’s License, State ID
or Passport)
 For additional signer(s), the borrower will enter their information during the loan process. The additional signer
will receive an email with details on how to log in to complete their own eNotary session

HELOC Florida Title Requirements

 Loan Amounts < $350,000: Legal and Vesting Report; title Insurance not required
 Loan Amounts ≥ $350,000: ALTA Policy Required
Property and Flood Insurance
o Hazard insurance is not required for HELOCs in 2nd position
 Flood insurance is required for properties located in flood zones A or V
Closing/Funding Timeline
 Primary residences: Can close in as few as 5 business days, funding after the 3-day right of rescission
 Second homes: Can close in as few as 5 business days with same-day funding
 Investment properties: Can close and fund in as few as 5 business days
NOTE: Some states have additional requirements that may delay funding After Closing

HELOC Transactions

 The borrower is required to take a minimum draw of 75% at closing
Prepayment Penalty
 There is no prepayment penalty
Payments
 All payments are due on the 1st day of the month
 Broker payment will be via ACH or check; ACH is preferred

HELOC Application Changes 

 Borrowers can make changes to loan amounts in the Portal provided the Final Offer has not been accepted
 Property address changes: A new application is required
Wait Periods to Apply
 There are no wait periods to apply from the time of the last lien closing; however, the borrower must be currently vested on title in order to apply
Multiple Home Equity Loans
 A borrower can apply for up to three (3) loans under the Digital HELOC product
 The aggregate amount of the loans is subject to a limit of $750,000 per borrower
Account Access
 Once logged in to their account, the borrower will have access to the application details and/or loan, including
the documents, statements, and tax forms, managing payments, changing the bank account, and requesting a
payoff
 There is no mobile app available at this time
Tax Deduction
 Home Equity Loans may be tax-deductible; borrowers should consult with their tax advisor for additional information.
information
Subordinating the Digital HELOC After Closing
 The Digital HELOC will not be subordinate to 2nd position after closing

HELOC Coverage of Every City, Including