HELOC is a revolving credit line with variable rates — draw as
needed, pay interest only on what you use. Home equity loan is a
fixed-rate lump sum with predictable payments from day one.
Full comparison →
Most lenders require 620+ FICO. The best rates go to borrowers with
700+. Some lenders accept scores as low as 580 with significant
equity and low DTI.
Full qualification guide →
Only if the HELOC funds are used to "buy, build, or substantially
improve" your home. Interest on HELOC funds used for debt
consolidation, education, or personal expenses is not deductible.
Full tax guide →
Yes — a HELOC is a secured loan. If you default, the lender can
foreclose. Second-lien HELOC lenders are less likely to foreclose
when there's minimal equity, but they will if home values support
it.
Full foreclosure risks →