What is a First Lien HELOC?
A First Lien HELOC Sweep is a Home Equity Line of Credit that replaces your mortgage while also giving you access to all of your equity, not just the amount of a smaller 2nd mortgage HELOC. This product is available as a refinance option and on new home purchases and is designed to help customers pay off their homes faster while also leveraging their equity for investments, emergencies, etc.
How is a First Lien HELOC Sweep different from a traditional Home Equity Line of Credit?
Traditionally, people think of a HELOC as a second loan or lien on their homes, which sits “behind” their first mortgage. A First Lien HELOC Sweep combines your mortgage with your HELOC while also giving you access to up to 90% of your home’s equity. There are no PMI or escrow requirements. Deposits into your checking account sweep over to pay down your First Lien HELOC nightly. Your day–to–day expenses are debited from your Home Equity Line of Credit.
How do I know if a First Lien HELOC is right for me?
- Would your loan amount be at least $100,000?
- Is this HELOC paired with a purchase or refinance of your primary residence?
- Would this be a first lien?
- Are you proficient at managing your finances and making sure that your monthly income always exceeds your monthly expenses?
- Are you looking to utilize all available funds to pay down your home faster?
- Are you comfortable utilizing your HELOC to cover your day–to–day expenses?
First Lien HELOCs are offered in 47 states (excluding Texas, Alaska and Hawaii)
Visit firstlienheloc.com for more information or contact our Franklin, TN lending office:
Mortgage Banking Non-Producing Manager NMLS#159398
133 Holiday Court, Ste. 208
Franklin, TN 37067
Hours: 9 am – 5 pm CST Mon-Fri