Apply for HELOC Berks County, PA

If you intend to apply for a Home Equity Line of Credit (HELOC), Bellco Federal Credit Union in Berks County, PA can help you decide if tapping your home equity for a loan is right for you.

Bellco FCU is a member-owned, not-for-profit federal credit union. Since 1938, we have provided unique financial products and services to individuals in Berks County, including HELOCs, traditional home equity loans, fixed rate mortgages, and more.

Membership in Bellco FCU is open to people who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and set up your membership in a few simple steps.

Once you are a member, your immediate family members will be eligible to join too and take advantage of competitive rates for mortgages, personal loans, credit cards, and the many other services we offer. 

About the Home Equity Line of Credit (HELOC)

A HELOC is a line of credit, similar to a credit card, that is based on the equity in your home. You draw out the money you need, when you need it, and make monthly payments based on the amount of money you withdraw.

The interest rate on a HELOC may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans, so it may be the perfect solution when you need to borrow small amounts over a longer period, such as for an extensive home renovation project or to pay ongoing tuition fees.

What to Know Before You Apply

There are several factors lenders like Bellco FCU use to determine exactly how much you can borrow, and each lender will have different requirements. 

  1. Equity. When you apply for a HELOC, you must have equity in your home because it will serve as collateral for your loan. If your home is worth more than the balance left to pay on your mortgage (and any other debts secured by your home), you have equity. If, for example, your home has a market value of $250,000 and you owe $150,000, you have $100,000 in equity. To verify the home’s market value, the lender may require an appraisal.

  2. Loan-to-value (LTV) ratio. Lenders use the loan-to-value (LTV) ratio to determine how much you can borrow. Let’s say you are looking for a $10,000 line of credit and owe $150,000 on your mortgage (using the information in #1 above). If your home is currently valued at $250,000, the LTV would be 64%. Many lenders limit HELOCs to a maximum of 80% LTV.

  3. Income. Your lender will want to know that you have sufficient income to cover the cost of your current debts, plus the additional HELOC debt you will be taking on. In most cases, the lender will be looking for a debt-to-income ratio of less than 43% and will also look at your assets, employment, credit history and monthly expenses to determine your ability to repay the loan.

  4. Credit score. The higher your credit score, the better, but most lenders will work with you even if you have had credit problems in the past.

To apply for a HELOC in Berks County, PA, or a different type of home loan, visit Bellco FCU. We have the tools, information and expertise to help you make the right decisions. Contact us today to learn more!