Tap Your Home Equity with a HELOC or Specialty Loan

Flexible options for homeowners looking to unlock the value in their homes

Tap into your home’s equity with flexible HELOC and specialty loan options.

When it comes to tapping into your home’s value, flexibility matters. Whether you want to fund a renovation, consolidate debt, or secure funds for future opportunities, a Home Equity Line of Credit (HELOC) offers one of the smartest ways to access cash without disrupting your existing mortgage.

At Delaware Mortgage Loans, we offer a suite of HELOC and specialty loan products designed to give homeowners, investors, and self-employed borrowers more control over their finances — with flexible terms, competitive rates, and documentation options that fit real-world scenarios. Find out if you qualify today by calling 302-703-0727 or APPLY ONLINE.

What Is a HELOC?

A Home Equity Line of Credit (HELOC) allows you to borrow against the equity in your home — much like a credit card backed by your property’s value. You can draw funds during the “draw period,” repay, and even re-borrow (in most cases) — giving you ongoing access to low-interest credit.
In contrast, a home equity loan (sometimes called a HELOAN) is a one-time lump sum, fixed-rate product with predictable monthly payments.

Our HELOCs are designed with flexible draw periods and repayment options so you can choose the structure that fits your goals — whether you prefer a variable line, a fixed-rate option, or a traditional closed-end loan.

How a HELOC Works

During the draw period you have access to your credit line. Following the draw period, your loan transitions to full amortization — the monthly payment includes principal and interest.
Because your home secures the line of credit, the rates tend to be lower than unsecured options such as credit cards or personal loans.
The John Thomas Team with Primary Residential Mortgage offers a variety of structures — including variable-rate HELOCs, fixed-rate “FixLine” HELOCs and traditional closed-end home equity loans — each built with flexibility in mind.

Traditional HELOC Loan Program Highlights

No initial draw required – access funds only when you need them
FICO as low as 640 – flexible qualification options
Loan amounts up to $750,000 (Bridge loans up to $1 million for 1st lien)
Appraisal waiver options with AVMs allowed up to $400,000 – no full appraisal required
Max combined LTV (CLTV) up to 95% – use more of your equity
Draw/repayment structure: typically 10-year draw / 20-year repay (variable)
Bank statement income allowed (1st & 2nd liens)
One-year tax return option for qualified borrowers
Standalone or simultaneous transactions – can be combined with a purchase or refinance

What are the Qualification & Documentation Requirements for a HELOC?

Here’s a more detailed breakdown of what lenders typically look for (and how our programs accommodate non-traditional situations):

Equity: The amount of equity you’ve got in the home plays a big role. Many lenders prefer you retain at least 15% equity in your primary residence after the borrowing. For second homes or investment properties, the equity requirement is often stricter.
Credit Score: We’ve helped borrowers with FICO 640+ qualify for HELOCs. Many lenders expect credit scores in the mid-600s (for example 640 for a primary home, 680 or higher for second homes or investment properties).
Income & DTI (Debt-to-Income): Lenders will verify that your income supports the payments (including the new line). Standard debt-to-income ratios often cap at around 43 %, but some programs (especially non-traditional or self?employed borrowers) may go higher (up to ~50 %) depending on other factors.
Documentation Options: We offer flexible programs — including bank-statement based qualification or one-year tax-return review for self-employed or seasonal income borrowers.
Property Appraisal: Some HELOCs require a full appraisal. However, many lenders (and our programs) provide no-appraisal options using an Automated Valuation Model (AVM) plus a Property Condition Report (PCR) — which can speed up processing and reduce cost.

HELOC Program Options

We offer three distinct HELOC structures, each built to serve different financial goals and borrower preferences:

1. HELOC (Variable Rate)

Structure: 10-year interest-only phase; then fully amortized 20-year term
Minimum Draw: Must Cover Closing Costs with Draw at closing
Payment Type: Interest-only during draw period, then principal & interest afterward
Key Notes: True revolving credit line — borrow, repay, and reuse as needed. Adjustable rate (ARM).

2. FixLine HELOC

Structure: 3-year draw period; fully amortized over 15, 20, or 30 years
Minimum Draw: Greater of $25,000 or 75% of total line
Payment Type: Fixed principal & interest from the start
Key Notes: Combines the flexibility of a credit line with the stability of a fixed rate and fixed term.

3. HELOAN (Closed-End / Fixed Loan)

Structure: Fixed rate, fixed term, fixed payments
Minimum Loan: $25,000
Payment Type: Fully amortized principal & interest
Key Notes: Traditional home equity loan with predictable monthly payments and fixed rate stability.

Fixed vs Variable HELOC: Which Should You Consider?

Variable-Rate HELOC: You tap a credit line, make interest-only or minimal payments during the draw period, and later amortize. Rates adjust with the market (so there is interest-rate uncertainty).
Fixed-Rate HELOC (“FixLine”): You commit to a fixed rate and fixed payments from the start — combines the flexibility of access with the stability of fixed monthly payments.
When making your choice, consider how you’ll use the funds, how comfortable you are with potential rate increases and whether you want predictable payments.

Pros & Cons of Home Equity Line of Credit:

Pros:

Flexibility: Borrow only what you need, when you need it.
Low interest rates (typically lower than credit cards or unsecured debt).
Access to cash without refinancing your entire mortgage.
Potential tax deduction: Starting after tax year 2025, interest on HELOCs may be deductible regardless of how the funds are used (check with your tax advisor)

Cons:

Variable rates increase risk: If interest rates rise, payments can go up.
Your home is collateral: Default means risk of foreclosure.
Easy access to funds may tempt overspending — it’s wise to have a plan for how you use the line.
Draw periods expire: After the draw period ends you must enter repayment — payments may increase.

HELOC vs Cash-Out Refinance: Which is right for you?

A cash-out refinance replaces your existing mortgage with a new, larger one and you take the difference in cash. It can lock in a lower rate on your entire financed amount but increases your overall mortgage balance.
A HELOC lets you keep your existing mortgage intact and borrow only what you need now — offering flexibility and less disruption. However, you may accept higher interest or variable rate risk.
If you have a low rate on your first mortgage and only need funding for a specific purpose, a HELOC might be the smarter choice. If you’re looking to consolidate debt and lock in a low rate across all your debt, a cash-out refinance might be better.

Specialty Loan Products

HELOC Renovation Loan – Finance upgrades using future appraised value on a HELOC
HELOC Land Loans – Finance residential build-able lots
Fixed-Rate 2nd Mortgages – Secure ultra-competitive fixed rates
Investment Property Home Equity Loans & HELOC – 1st and 2nd lien options for investors
HELOC Bridge Loans – Short-term 1st lien loans up to $1 million

Ideal for Self-Employed & Non-Traditional Borrowers

Our programs are designed for self-employed and commission-based clients, with flexible underwriting options including:

Bank statement income qualification
One-year tax return review
Asset-based options for high net-worth borrowers

Get Started Today

If you’re thinking about tapping into your home’s equity, let’s talk. John Thomas loan officer with Primary Residential Mortgage, Inc., can help you explore every option available — from flexible, variable-rate HELOCs to fixed-rate lines and traditional home equity loans.

Primary Residential Mortgage is licensed to lend HELOCs in every state except New York, which means whether you’re here in Delaware or relocating anywhere else in the country, my team can guide you through the process with the same personal service and expertise.

You can start by calling me directly at 302-703-0727 or APPLYING ONLINE through my secure portal. We’ll go over your goals, calculate your available equity, and see which program best fits your financial plan.

Let’s put your home equity to work — responsibly, strategically, and with the confidence that comes from working with a nationally recognized, full-service lender.

Apply Now for Your HELOC or Specialty Loan

HELOC & Specialty Loan FAQ

What is a HELOC and how does it work?: A HELOC allows you to borrow against your home’s equity as needed. During the draw period, you can access funds and repay as needed. Afterward, the line converts to regular payments of principal and interest.
How is a HELOC different from a Home Equity Loan (HELOAN)?: A HELOC is revolving and flexible; a HELOAN provides a one-time lump sum with fixed payments.
What credit score do I need to qualify for a Home Equity Line of Credit?: FICO scores as low as 640 may qualify depending on income, equity, and overall financial profile.
How much can I borrow with a HELOC?: Up to $750,000 for HELOCs and $1 million for 1st lien bridge loans, with a max CLTV of 95%.
Can self-employed borrowers qualify for a HELOC?: Yes, we offer programs using bank statements or one-year tax returns for income verification.
What can I use a HELOC for?: Common uses include home improvements, debt consolidation, tuition, investments, and bridge financing.
What other specialty loan options are available?: Renovation loans, land loans, fixed-rate 2nd mortgages, investment property financing, and bridge loans.
How do I get started?: Apply online or schedule a consultation with our Delaware Mortgage Loans team today.