Home Equity
Unlock Your Home's Equity
Your home may be your greatest financial asset. Federal Crown Bank Home Equity Loans and HELOCs give you flexible, low-rate access to the equity you've built — for renovations, debt consolidation, education expenses, or any major goal.
HELOC LTV available
Available on Home Equity Loans
HELOC draw period
Starting HELOC variable rate
Choose Your Product
Home Equity Loan vs. HELOC — Which Is Right for You?
Both products let you borrow against your home's equity, but they work differently. Compare features to find the right fit.
- Receive all funds at once at closing
- Fixed interest rate for the entire term
- Predictable monthly payment — never changes
- Terms from 5 to 20 years
- Ideal for: home renovation, debt consolidation, major one-time expense
- Interest may be tax-deductible if used for home improvements
- Draw funds as needed during 10-year draw period
- Variable rate tied to the Prime Rate
- Pay interest only on what you use
- 20-year repayment period after draw ends
- Ideal for: phased renovations, business expenses, emergency fund
- Option to convert draws to fixed-rate sub-accounts
Key Features
What Sets Our Home Equity Products Apart
A Home Equity Loan delivers funds upfront in a single disbursement. A HELOC functions like a credit card — draw, repay, and redraw during the 10-year draw period as your needs evolve.
Home Equity Loans carry a fixed rate and fixed payment for predictability. HELOCs use a variable rate (Prime + margin) that can change monthly — but you can lock draws into fixed-rate sub-accounts.
Interest on home equity debt may be deductible when proceeds are used to substantially buy, build, or improve your primary or secondary residence. Consult a tax advisor — limits apply.
Because both products are secured by your home, they offer substantially lower interest rates than unsecured personal loans or credit cards — often 3%–8% lower depending on your credit profile.
Use your equity for home renovations (most common), debt consolidation, college tuition, a vehicle purchase, a vacation property down payment, or virtually any legitimate purpose.
Manage your HELOC or HEL entirely through Federal Crown Bank Online Banking or the mobile app — view balance, make payments, request draws, and monitor your available credit in real time.
Current Rates
Home Equity Loan & HELOC Rates
Rates as of April 2026. Subject to change daily. Approved credit required. Preferred Rewards members may qualify for discounted rates.
| Product | Term | Interest Rate | APR | Est. Monthly Payment (per $10K) |
|---|---|---|---|---|
| Home Equity Loan | 5 Years | 7.25% | 7.38% | $198.81 |
| Home Equity Loan | 10 Years | 7.50% | 7.62% | $118.70 |
| Home Equity Loan | 15 Years | 7.75% | 7.87% | $93.97 |
| Home Equity Loan | 20 Years | 8.00% | 8.11% | $83.64 |
| HELOC (Variable) | 10-yr draw / 20-yr repay | Prime + 0.25% (currently 7.75%) | 7.88% | Interest-only during draw |
Home Equity Loans: rates are fixed for the life of the loan. HELOC: variable rate adjusts monthly with Prime Rate. Rates shown assume owner-occupied single-family home, 80% CLTV, and excellent credit. Actual rate may vary.
How Much Can You Borrow?
Estimating Your Available Home Equity
Your borrowing power is based on your home's current value minus your outstanding mortgage balance. Federal Crown Bank allows up to 85% combined loan-to-value (CLTV) on HELOCs.
| Home Value | Mortgage Balance | Current Equity | Max CLTV (85%) | Max Available to Borrow |
|---|---|---|---|---|
| $300,000 | $200,000 | $100,000 (33%) | $255,000 | $55,000 |
| $400,000 | $250,000 | $150,000 (37.5%) | $340,000 | $90,000 |
| $500,000 | $300,000 | $200,000 (40%) | $425,000 | $125,000 |
| $600,000 | $350,000 | $250,000 (41.7%) | $510,000 | $160,000 |
| $750,000 | $400,000 | $350,000 (46.7%) | $637,500 | $237,500 |
Formula: (Home Value × 0.85) − Mortgage Balance = Maximum Available. Maximum CLTV may be lower based on credit score, property type, and state regulations. An appraisal determines final home value.
Qualifying Requirements
What You Need to Qualify
Home equity products are secured by your property. Lender requirements ensure both parties are protected. Here's what lenders typically evaluate.
Combined Loan-to-Value must be 85% or below for most HELOCs. Home Equity Loans may allow up to 80% CLTV. Higher equity = better terms. Calculate: (All Mortgage Balances ÷ Home Value) × 100.
Minimum credit score of 620 required. Scores of 700+ receive the most favorable rates. Scores between 620–699 may face higher rates or lower maximum LTV allowances.
Most lenders require a total DTI (all monthly debt payments ÷ gross monthly income) of 43% or below. We calculate DTI including the new HEL or HELOC payment. Lower DTI = stronger application.
An independent licensed appraiser determines current market value. This protects both you and the bank from over-borrowing. Appraisal fees ($300–$600) are typically paid upfront by the borrower.
Required: two years W-2s or 1099s, two recent pay stubs (or two years tax returns if self-employed), and two months of bank statements. Business owners may need P&L statements.
Best rates apply to primary residences. Second homes may qualify with slightly higher rates and lower max LTV. Investment/rental properties face more restrictive terms and higher rates.
FAQ
Home Equity FAQs
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What's the difference between a Home Equity Loan and a HELOC?A Home Equity Loan (HEL) is a one-time, fixed-rate loan — you receive the full amount at closing and repay it in equal monthly installments over a set term. A HELOC is a revolving line of credit with a variable rate. You draw funds as needed during a 10-year draw period, pay interest-only on what you use, and repay the principal during a 20-year repayment period. HELs offer certainty; HELOCs offer flexibility.
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Can I lose my home if I default on a home equity loan?Yes — because both HELs and HELOCs are secured by your home, the lender can initiate foreclosure proceedings if you default. This is an important consideration before using home equity for purposes like vacations or discretionary spending. We encourage borrowing only what you're confident you can repay, and only for purposes that provide lasting financial benefit.
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Is home equity interest tax deductible?Under the Tax Cuts and Jobs Act (TCJA, 2017), interest on home equity debt is deductible only when the loan proceeds are used to substantially buy, build, or improve the home securing the loan. Using equity for debt consolidation, vehicle purchases, or other non-home-improvement purposes eliminates the deduction for that portion. The deduction applies on combined mortgage debt up to $750,000 ($375,000 if married filing separately). Consult your tax advisor.
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How long does it take to get funds from a home equity loan?From application to funding, the process typically takes 2–4 weeks. The timeline includes: application and document review (1–3 days), appraisal scheduling and completion (5–10 business days), underwriting (3–5 business days), and closing. For primary residences, there is a mandatory 3-business-day right of rescission after closing before funds are disbursed. HELOCs can then be drawn immediately once the account opens.
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Do I pay interest on the full HELOC limit or only what I draw?You pay interest only on the amount you have actually drawn — not on the full credit limit. For example, if you have a $100,000 HELOC and have drawn $30,000, you pay interest only on $30,000. During the 10-year draw period, minimum payments are typically interest-only, which keeps monthly costs low. During the 20-year repayment period, payments include both principal and interest on the outstanding balance.
Put Your Home's Equity to Work
Check your eligibility and estimated credit limit online in minutes — no impact to your credit score for initial estimates.