How soon can I get a HELOC after purchasing a home?

Homeownership may open a door to borrowing that renters don't have: the equity in your home. For many recent buyers, a home equity line of credit (HELOC) may be available sooner than they expect.

A HELOC is a revolving line of credit secured by your home. It's a way for you to borrow against your home's equity up to an approved limit, repay it, and borrow again, just like a credit card. Most lenders require at least 15–20% equity in your home to be eligible.

How soon might you be able to get a HELOC after closing? The answer depends on your equity and your lender.

Can you get a HELOC right after buying a home?

There are no standard rules about a waiting period before you apply for a HELOC after you buy a home. So, it could be possible to get a HELOC right after closing if you have enough equity and meet a lender's other requirements. 

Even so, every lender is different, and some do require a seasoning period—a set amount of time you must hold the title before you're eligible to apply. Some lenders require you to hold the title for six months to a year. Achieve Loans, for example, has a six-month waiting period after you buy your house before you are eligible to apply for a home equity loan or HELOC.

For many buyers, the timing question is really an equity question. Home equity is the part of your home you own; it's the difference between what you owe on the mortgage and your home's value. A large down payment may make you eligible to apply sooner than you think, since you start off with more equity right away.

How long does it take to get a HELOC?

A HELOC usually takes about two to six weeks from application to funding. Some lenders, including Achieve Loans, could get you to the closing table in as few as five days. Achieve Loans reported an average funding time of about 11 business days in 2025, including the rescission period. 

The steps involved in how a HELOC works each affect your timeline. That includes how quickly you provide requested documents, whether the lender orders a home appraisal and how long that takes, and how long your application sits in underwriting. For a closer look at each stage, read how long it takes to get a HELOC.

After you close on a HELOC secured by your primary residence, federal law gives you three business days to cancel the loan for any reason without penalty. This is called the right of rescission and is provided by the Truth in Lending Act (TILA). Saturdays count as business days for rescission; Sundays and federal holidays do not. Your lender can't release the funds until that window closes.

What HELOC lenders consider after a recent home purchase

Lenders consider several factors when they review a HELOC application. Some consider how recently you purchased the home; others focus primarily on your equity, credit, and income. Many lenders want to verify a solid mortgage payment history before pre-approving a second mortgage. Some other common requirements for a home equity loan include:

Credit score. Most home equity lenders require a minimum credit score of at least 620, though many prefer 680 or higher.

Income. Your lender will verify that you have stable, documented income, such as a full-time job or regular government benefits.

Debt-to-income (DTI) ratio. Your DTI is the percentage of your gross monthly income that goes toward debt and housing payments each month. 

Home equity. You need enough equity to borrow against. 

Most lenders offer variable-rate HELOCs, though Achieve Loans offers fixed-rate HELOCs. With a variable-rate HELOC, your rate and monthly payments may increase or decrease over time, based on changes to an underlying benchmark rate. A fixed-rate HELOC offers payment stability and predictability, since your rate won't change. Make it a point to confirm which type of HELOC you're getting with the lender before you apply. 

How much equity do you need for a HELOC?

For many new homeowners, the amount of equity in your home, not how long it's been since you got the keys, has the most influence on when you are eligible to apply for a HELOC. 

To be eligible for a HELOC, you generally need at least 15–25% equity, though requirements vary by lender. The lender will combine your primary mortgage and your HELOC to calculate your combined loan-to-value ratio (CLTV). Your CLTV measures all the loans you have on the home, including first mortgages and HELOCs, divided by your home's value. Lenders often limit the CLTV to around 80–85% of your home's value.

Here is a simple example using a $500,000 home:

If you have 20% equity and your lender's CLTV limit is 80%, there's no room to add a HELOC on top of your existing mortgage. With 25% equity, on the other hand, you may have some borrowing room. More equity generally opens up more options.

How to calculate your home equity

Home equity is straightforward to calculate. Subtract your mortgage balance from your home's appraised value. A real estate website may give you a reasonable estimate of what your home is currently worth. When you apply for a HELOC, the lender will conduct its own appraisal to confirm the market value.

How to get a HELOC

The HELOC application process is similar to applying for a mortgage. Most HELOCs require a home appraisal or valuation, proof of income, homeowners insurance, and a recent mortgage statement before closing. Prepare your documents early to keep things moving. Here's how to get a HELOC, step by step:

1. Check your eligibility. Review your credit, equity, and DTI against typical lender requirements to see where you stand before you apply.

2. Compare lenders. Prequalifying with more than one lender is a good way to find the best deal you qualify for, often without affecting your credit.

3. Gather your documents. Pull together proof of income, your homeowners insurance declaration, property tax paperwork, and your latest mortgage statement.

4. Apply and complete underwriting. The lender reviews your finances and credit and typically orders an appraisal to confirm your home's value.

5. Close and access your funds. Review the loan terms carefully, ask questions about anything unclear, sign, and wait out the three-day rescission period before the funds are released.

A few things tend to slow the process down. Common delays include incomplete or unclear income documentation and missing homeowners insurance or property tax paperwork. Respond quickly when your lender asks for more information to help keep things on track.

Most HELOCs have variable interest rates, so the rate and payment could change with market conditions. Achieve Loans offers a fixed-rate HELOC, which gives you the flexibility of a line of credit with a rate that won't change. Some HELOCs allow interest-only payments during the draw period, while others require both principal and interest. Ask your lender which applies. 

With a HELOC through Achieve Loans, you make principal plus interest payments during the draw period and the repayment period. Although Achieve Loans' draw period is five years, HELOC draw periods generally last up to 10 years, depending on the lender.

Can you get a home equity loan sooner than a HELOC?

A home equity loan enables you to access your equity as a one-time loan. You then repay it over a term of 10 to 30 years, typically at a fixed rate. Home equity loan requirements are generally the same as for HELOCs. That means the timeline for a home equity loan is not necessarily shorter than for a HELOC. The same equity, credit, and income standards apply to both.

Alternatives to a HELOC

A HELOC is not the only way to access home equity or cover a large expense. There are other options to consider, depending on your financial situation and goals.

• A home equity loan provides a one-time loan at a fixed rate, which may suit you better if you need a set amount and prefer consistent payments.

• A typical cash-out refinance replaces your existing mortgage with a new one and gives you cash from your equity. It also resets your mortgage rate and terms.

• An unsecured personal loan does not use your home as collateral. The rate may be higher than a secured option.

What’s next?

• Calculate your home equity. Pull up your current mortgage balance and subtract it from your home's estimated value. Your home's appraisal value is a reasonable starting point if you recently bought it.

• Check your lender's HELOC requirements. Talk to a Mortgage Advisor at Achieve Loans for free to see if we can meet your needs.

• Set your mortgage payments to autopay. This does not directly affect your HELOC eligibility, but it supports a consistent payment history that future lenders will review.

A debt-to-income ratio calculator can help you see where your DTI stands before you apply.