Homebridge offers a fixed-rate home equity line of credit, or HELOC, as well as a HELOC specifically designed to help you make a down payment on another property, called the Equity Mover HELOC.
The New Jersey-based mortgage lender describes its Equity Mover HELOC as a bridge loan designed for short-term funding that’s backed by the value of your current home.
Homebridge HELOCs are offered in 40 states.
Homebridge: At a glance
|Type of loan offered||HELOC|
|APR||Starting at 3.75% (4% without autopay)|
|Loan amount||Up to $400,000|
|Credit score minimum||680 for second properties|
|Repayment terms||5, 10, 15 or 30 years|
|Average time for approval||Instant|
Homebridge is best suited for homeowners who need fast access to money or who specifically want to finance the purchase of another property such as a vacation home or investment property. You can be approved in as little as five minutes with Homebridge’s speedy application process, so you know right away whether or not you qualify. Homebridge HELOCs are also good for people who may need a flexible loan term as they offer a range of repayment terms from five to 30 years.
Homebridge also offers homeowners the benefit of a rate discount if they become a member of the Teachers Federal Credit Union, or TFCU, when closing on a loan. If you join, you can receive a 0.5% discount on your rate (with a $5 minimum balance).
What we like
- Fast approval and access to funds: Homebridge has one of the fastest online approval processes when it comes to HELOCs. The lender says it only takes five minutes to fill out the application and you’ll receive an approval or denial instantly. If approved, you can receive your funds in as little as five days.
- Competitive interest rates: In today’s rising interest environment, finding a low APR is critical to keeping the cost of your loan down. Homebridge offers some of the lowest available rates for qualified borrowers, starting at 3.75%.
- Minimal fees: Although Homebridge charges an origination fee, there are no early-termination fees or prepayment penalties.
What we don’t like
- 100% withdrawal required at closing: A Homebridge HELOC closely resembles a home equity loan in that it has a fixed rate and also requires you to withdraw the full amount of your loan at the time of funding (or 80% for the Equity Mover HELOC), which means you could end up paying costly interest on funds you don’t actually need to use right away.
- Withdrawal restrictions: Most HELOCs allow you to make repeated withdrawals as necessary when accessing your open line of credit, but with Homebridge, you can only make additional withdrawals a full two to five years after your loan originates.
- No conventional HELOC option: Because a Homebridge HELOC functions more like home equity loan, if you’re looking to finance a life expense, such as college tuition or a home renovation over an extended period of time, a Homebridge HELOC may not make sense for you because you’re required to take all of your funds upfront, in one lump sum, and can’t make more withdrawals for a few years.
Home equity loan options
Homebridge has two types of fixed-rate HELOCs: Its standard HELOC, which requires a 100% draw at closing, and its Equity Mover HELOC, which requires an 80% draw at closing and is designed for homeowners to finance the purchase of an additional property. The nonbank lender also offers mortgages, renovation loans and refinancing.
With a Homebridge HELOC, there are no early termination fees or prepayment penalties. However, you will have to pay an origination fee. For its standard HELOC, you can choose to pay an origination fee of either 0%, 3.99% or 4.99%, and for its Equity Mover HELOC your origination fee will be 3.5% or the state-regulated maximum, whichever is lowest. Although Homebrige will pay any recording fees upfront that are required by your county, as the homeowner you must pay back the fees when you close on your loan.
How to qualify
Although Homebridge doesn’t disclose its minimum credit score for a HELOC on your primary residence, to take out a HELOC for a second home or investment property, you must have a credit score of at least 680. Approval for a Homebridge HELOC is dependent upon having sufficient equity in your home, also known as your loan-to-value, or LTV, ratio.
A HELOC is a second mortgage on your property, so you’ll need to provide proof of sufficient income and stable employment just like you did for your first mortgage. You’ll need to gather personal and financial documents such as pay stubs, tax returns and your Form W-2, as well as a government issued ID such as a state driver’s license. You’ll also need to provide current mortgage statements to demonstrate you’ve been making prompt and regular payments.
For general inquiries, you can reach customer service at 888-266-4930 Monday to Saturday from 8:30 a.m. to 8 p.m. ET (5:30 a.m. to 5 p.m. PT). To speak with a loan specialist after your loan closing, you can call 844-478-2622. For customer service for a loan in process, homeowners can email [email protected]
Founded in 1989, Homebridge is a privately held nonbank mortgage lender based in Iselin, New Jersey. It has more than 3,000 employees and 250 branches in 19 states and the District of Columbia.