Prosper HELOC

Prosper HELOC Review

Prosper HELOC is offered by Prosper Funding LLC, a marketplace lending platform founded in 2005 and based in San Francisco, CA. Prosper HELOC are available in 50 states (and Washington, DC).

Prosper HELOC FAQ

How much can you borrow with a HELOC?

HELOCs are lines of credit that are secured by your home. Once you get approved for a certain amount, you can access your funds by check, phone, credit card, or online up to your HELOC amount.

Prosper HELOC allows borrowers to apply for lines of credit of up to $300,000. 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 80% for qualified borrowers. That means the total debt secured by the property cannot exceed 80% 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 excellent credit, you may qualify for a line of credit of up to $60k.

What are the terms for a Prosper HELOC?

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 HELOC offers home equity loans with a draw period of up to 10 years and a repayment period of 15 years.

Is there a minimum draw requirement?

No, there isn't a minimum draw requirement.

What range of rates does Prosper HELOC offer?

Prosper HELOC offers APRs as low as 2.80% and up to 18%.

Remember the APRs of HELOCs do not include points and financing charges, just the interest rate. Most home equity lines of credit have a variable interest rate. Fixed interest rates -- if available -- typically have higher APRs, but your monthly payments don't change over the life of the line of credit.

What is the estimated funding time for a home loan via Prosper HELOC?

Prosper HELOC will typically fund home equity lines of credit in as few as 21 days of approval.

What fees does Prosper HELOC charge for a HELOC?

Prosper HELOC may charge a loan origination fee . There is also an annual fee of $75.

What types of property can you use as security for a HELOC with Prosper HELOC?

Lenders often have restrictions on the type of properties they will accept as security for a HELOC. Prosper HELOC will consider lines of credit secured by the following property types:

• Primary homes.
• Secondary homes and vacation properties