: Usually lasts 10 years . You can take money out as needed and typically only make interest payments on the amount you’ve borrowed.

Lenders generally look for the following criteria to approve an application: HELOC Guide: How Does a Home Equity Line of Credit Work?

: Usually lasts 10 to 20 years . You can no longer borrow money and must begin paying back both the principal and interest. 2. Qualification Requirements

A Home Equity Line of Credit (HELOC) is a revolving line of credit that lets you borrow against the value of your home. Unlike a standard loan that gives you a lump sum, a HELOC works like a credit card: you have a maximum limit and can draw funds as needed, paying back only what you use. 1. How It Works HELOCs operate in two distinct phases: