To qualify for a home equity loan you generally need 15–20% equity remaining (CLTV around 80–85%), a credit score usually 680+, verifiable income, and a reasonable debt-to-income ratio.
Equity and CLTV
Like a HELOC, a home equity loan is limited by combined loan-to-value — first mortgage plus the new loan over home value — commonly capped near 80–85%. Your lump sum is carved out of that available equity.
Credit and income
Because it adds a fixed monthly payment, lenders verify income and review DTI and credit. Self-employed borrowers can often qualify with alternative documentation — we’ll find the right lender.
| Requirement | Typical |
|---|---|
| Equity / CLTV | ~80–85% max CLTV |
| Credit | ~680+ for best terms |
| Income | Verifiable; DTI reviewed |
| Payout | One-time lump sum, fixed rate |
Frequently asked questions
How is this different from a HELOC?
A home equity loan is a one-time lump sum at a fixed rate with fixed payments; a HELOC is a revolving line with a variable rate.
How much equity do I need?
Enough to keep combined loan-to-value at or below roughly 80–85%. More equity means a larger possible loan.
Can I get one on an investment property?
Some lenders allow it at lower CLTV and higher rates. We can source these for California investors.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.