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Davis homeowners have built serious equity over the years. That equity is a financial asset you can borrow against — without selling or refinancing your first mortgage.
A HELoan gives you a lump sum at a fixed rate. You know your payment on day one and it never changes.
620 (typical)
Min Credit Score
80% of home value
Max Combined LTV
Fixed for loan term
Rate Type
Lump sum, 2nd mortgage
Loan Structure
3–6 weeks
Typical Close Time
Home Equity Loans (HELoans) in Davis
Most lenders want at least 20% equity remaining after the loan. That means your combined mortgage balances can't exceed 80% of your home's value.
Credit score requirements typically start around 620. Better scores get better rates — rates vary by borrower profile and market conditions.
Big banks offer HELoans, but their pricing isn't always competitive. Wholesale lenders we access often beat retail bank rates for the same borrower.
Approval timelines vary. Some lenders close HELoans in 3 weeks. Others drag it past 6. Ask upfront — it matters for project planning.
HELoans make sense when you have a fixed cost — a remodel, tuition, medical bill, or debt payoff. If your need is ongoing, a HELOC fits better.
Don't let a lender talk you into a cash-out refinance just to bundle it clean. If your first mortgage rate is low, protect it. A HELoan leaves it alone.
A HELOC gives you a revolving credit line with a variable rate. A HELoan gives you one draw, one fixed rate, one fixed payment. Different tools for different needs.
Cash-out refinancing replaces your first mortgage entirely. That can cost you a great rate. A HELoan sits behind your first — rate stays, equity gets tapped.
Davis is a UC Davis college town with strong long-term homeowner stability. Many residents have owned for 10-plus years and have meaningful equity built up.
Properties near campus or downtown Davis tend to hold value well. Appraisals for HELoans depend on current market value — strong local demand supports that.
Most lenders cap your total borrowing at 80% of your home's appraised value. Subtract your first mortgage balance — what's left is your ceiling.
No. A HELoan is a separate second mortgage. Your first mortgage rate, payment, and terms stay exactly as they are.
Typically 3 to 6 weeks from application. Appraisal scheduling and lender workload are the main variables.
If you know the exact cost upfront, a HELoan's fixed rate and lump sum works well. If costs are uncertain, a HELOC gives you more flexibility.
Most lenders start at 620. Scores above 700 open up better pricing. Rates vary by borrower profile and market conditions.
Yes, but expect full documentation. Most lenders require 2 years of tax returns and may average your income across both years.