Times are tough right now, and if you’re feeling the financial pressure, you are not alone.
For many homeowners, home equity is their number one source of wealth…but many haven’t tapped into it yet. My new HELOC offering through Aven provides relief by allowing you access to your home equity quickly and easily.
This HELOC is unique in that the application takes 5 minutes to complete online, does not run hard credit, can be closed in as little as 5 business days, can be a fixed rate or variable, and they can even be used for investment properties vesting in an LLC.
In most cases, an appraisal isn’t needed and income is verified online, even for self-employed borrowers, so it can be done very quickly!
This isn’t a one size fits all HELOC, so it might not move so quickly depending on your circumstance. I’ve had clients close in as little as 5 days, and as long as one month. However, the average time from application to close is around 10 days, assuming initial approval.
So, if you want to keep your current low mortgage rate, here’s a way to inexpensively access your equity!
The Statistics
Believe it or not, U.S. homeowners are sitting on record amounts of equity. Cotality’s latest Home Equity Insight Report shows that borrowers with a mortgage have an average of $310,000 in housing wealth per homeowner. That’s over $11.5 trillion available in the US overall!
“Homeowners have accumulated enormous amounts of equity, but most of it isn’t doing much,” said Thom Malone, principal economist at Cotality. “The borrowers with the most housing wealth are often the least likely to tap it. They tend to have low mortgage rates, strong cash flow, and little reason to move.”
“That means much of the country’s record home equity remains on the sidelines, while the same homeowners continue to benefit from the lower monthly payments that helped create it in the first place.”
The Aven HELOC
Homeowners can now receive a pre-qualification offer in as little as three minutes and funding in as few as five days, compared with the 30 to 45 days typical of a traditional HELOC.
Aven’s income verification procedure replaces many manual and in-person processes that can slow down home equity lending.
At application, only a soft credit inquiry is done, so your credit will not be impacted by completing an application, so there’s no reason not to give it a try!
Secondly, Aven’s product combines a revolving HELOC with optional fixed-rate payment plans called Aven Simple Loans, giving homeowners flexibility in how they borrow and repay.
Some of the features that make this product stand out include:
- A Visa card connected directly to your home equity line
- Reuse your available credit as you pay down your balance
- Make purchases, request cash advances, or complete balance transfers
- No annual fee
- No repeat draw or balance transfer fees after your initial draw
- Choose between a variable-rate revolving balance or fixed-rate payment options
- The ability to lock eligible balances into a fixed-rate loan after the draw period
- Financing available for qualified owner-occupied homes with combined loan-to-value ratios up to 89%
- Debt-to-income ratios up to 55% for eligible borrowers
- Flexible qualification for salaried employees, self-employed borrowers, retirees, and many homes held in trust
Every borrower is different, and qualification depends on credit, income, equity, and other underwriting requirements.
You can apply for the Aven HELOC here…
Self Employed Borrowers
Self-employed applicants can now verify business ownership directly inside the application.
The borrower connects their business bank account, and roughly half of self-employed applicants are verified automatically with no documentation required for the verification of ownership.
Applicants who cannot be verified through the connection simply upload a supporting document instead.
Also, income can be calculated directly from your bank account records, though the secured Plaid technology application. So, there’s no need to provide bank statements.
A connected Plaid bank account is now verified by either an address match to the subject property or a name match to an applicant.
Because of the address match, income belonging to a household member who is not on the application can be counted when that person’s bank account address matches the subject property.
Also, Aven now confirms business ownership automatically on a large share of self-employed applications, which takes a document request off your list.
When automation cannot confirm ownership, the borrower uploads a Schedule K-1 or an operating agreement. Those documents establish ownership only. They are not used in the income calculation.
Investment Properties and 2nd Homes
One feature that truly sets this program apart is that it isn’t limited to your primary residence.
Qualified borrowers may also use this HELOC with investment properties and 2nd homes — something that’s surprisingly difficult to find in today’s lending market.
While many home equity products are restricted to owner-occupied homes, very few lenders offer flexible HELOC solutions for rental properties and vacation homes.
Also, an Aven HELOC is now able to be vested in an LLC!
For real estate investors and homeowners with multiple properties, this can provide access to equity without having to refinance an existing low-interest first mortgage or sell an appreciating asset.
It’s another way to put the equity you’ve worked hard to build to work for you.
Let’s Talk
Whether you’re looking to access equity in your primary residence, a vacation home, or even an investment property, today’s HELOC options offer more flexibility than many homeowners realize.
As The Lending Coach, my goal isn’t simply to help you obtain a loan. It’s to help you determine whether borrowing against your home’s equity is the right financial move—and if it is, which option best fits your long-term goals.
Sometimes the best financial decision isn’t borrowing more. Sometimes it’s simply knowing your options.
Reach out to me directly—I’d love to talk strategy and explore how we can best take advantage of a HELOC to help you succeed.
If you’d like to apply now for an Aven HELOC, you can do so here…
As always, you can set up an appointment with me here…
The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Starlight Mortgage. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.
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