Where does Prosper do business?
Prosper is a direct lender based in San Francisco, CA. The company was founded in 2005 and offers home equity lines of credit (HELOCs) to borrowers in state across the USA.
How much can you borrow with a HELOC?
Home equity lines of credit are lines of credit -- similar to a credit card -- that are secured by your home. Once you get approved for a certain amount, you can borrow as much as you need by writing a check or a credit card attached to the account.
Prosper allows borrowers to apply for lines of credit of up to $500,000. Note that the maximum loan amount you can borrow will vary depending on the value of the property, how much you owe on it, and your creditworthiness.
This lender's maximum loan to value rate is 90%. That means the total debt secured by the property cannot exceed 90% of its value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a line of credit of up to $70k.
What are the terms for a HELOC via Prosper?
HELOCs have a draw and a repayment period. During the draw period you can borrow as much as you need up to your credit limit. After the draw period, you are responsible for repaying the loan.
Prosper offers home equity loans with a draw period of up to 10 years.
Is there a minimum draw requirement?
No, there isn't a minimum draw requirement.
What fees does Prosper charge for a HELOC?
Prosper may charge a loan origination fee.