Ann Arbor-based Homepoint, among the nation’s largest wholesale mortgage lenders, has launched its new home equity line of credit in 38 states and Washington, D.C., available through its network of mortgage broker partners.
“This new home equity line of credit is another way we’re aiming to position mortgage brokers at the forefront of consumers’ minds when it comes to home affordability and maximizing the value of their home,” says Phil Shoemaker, president of originations at Homepoint.
Shoemaker says the equity line of credit is essentially a 100 percent digital lending platform experience from application to closing, requiring minimal uploading of income and asset documents. Depending on a borrower’s credit attributes, they may receive same day approval and fund it within five business days of final approval.
“Brokers are more than their title indicates — they are truly capable of serving as stewards for stronger overall financial health,” Shoemaker says.
The Homepoint home equity line of credit is a standalone line of credit with a fixed interest rate determined at each draw calculated using the stated Index, plus a margin. Homepoint’s offering equips independent loan originators with a tool to help their customers use their available home equity to pay off debts, fund home improvement projects, or make other monthly payments more manageable.
Shoemaker says eligible borrowers can access $20,000 to $400,000 of their home’s equity as a line of credit with either a 5-, 10-, 15-, or 30-year term and 2- to 5-year draw terms, while maintaining at least 15 percent equity in their home. There is no pre-payment penalty. It is available on single unit owner-occupied properties, as well as single unit second homes and investment properties.
