Before applying for a home equity line of credit (HELOC), it's a good idea to do some research to make sure it’s the best loan option for you. Here are some common HELOC questions to get you started.
What Should My Credit Score Be?
Just like any other type of loan, your credit score plays a major role on whether or not you’ll be approved for a Cyprus HELOC. A credit score of at least 660 is a good start if you’re considering Cyprus Credit Union as your lender. Keep in mind that other factors can also play a role in determining approval, such as your debt-to-income ratio and loan to value ratio. If you’re worried about your current credit history and score, check out our tips for building your credit.
Do I Need Equity in My Home Before Getting a HELOC?
To be approved for a Cyprus HELOC, you'll typically be required to have at least $10,000 of equity in your home. The amount of equity you have can determine the size of HELOC you’re approved for. For applicants with a minimum of $50,000 in equity, Cyprus Credit Union may approve you for a HELOC of up to 100% of a home’s value. The less equity you have, the lower amount you may be approved for.
How Long Is a HELOC Term?
Cyprus HELOCs have a draw term of 10 years. The draw term is the time frame when you can make use of the loan and "draw" funds from it. During this time, payments toward the principal usually aren't due; however, you'll still have to make payments on any accrued interest. Once the draw term is over, the repayment period will start. During the repayment period, you'll begin to make payments on both interest and principal. The repayment period is five years for traditional HELOCs and 10 years for interest-only HELOCs.
How Do I Access the Money in a HELOC?
One popular and convenient method of accessing HELOC funds is with a Cyprus credit card. You can also access funds on your online Home Banking account.
The above article is for informational and educational purposes only. Membership and eligibility requirements apply in order to be approved for a Cyprus Credit Union HELOC or other Cyprus product. The information in this article is correct as of its publish date. If you have any questions or would like to verify that the information above is still correct, please contact Cyprus Credit Union Home Loans using the contact information in the Questions? section.