Times are tough right now, and if you're feeling the financial pressure, you are not alone.
For many homeowners, home equity is their number one source of wealth…but many haven't tapped into it yet. My new HELOC offering through Aven provides relief by giving you quick, easy access to your home equity.
In most cases, an appraisal isn't needed, and income is verified online, even for self-employed borrowers, so that it can be done very quickly!
This isn't a one-size-fits-all HELOC, so it may not move as quickly, depending on your circumstances. Clients can close in as little as 5 days, and as long as one month plus.. However, the average time from application to close is around 10 days, assuming initial approval.
So, if you want to keep your current low mortgage rate, here's an inexpensive way to access your equity!
Believe it or not, U.S. homeowners have record amounts of equity. Cotality's latest Home Equity Insight Report shows that mortgaged homeowners have an average of $310,000 in housing wealth per homeowner. That's over $11.5 trillion available in the U.S. overall!
"Homeowners have accumulated enormous amounts of equity, but most of it isn't doing much," said Thom Malone, principal economist at Cotality. "The borrowers with the most housing wealth are often the least likely to tap it. They tend to have low mortgage rates, strong cash flow, and little reason to move."
"That means much of the country's record home equity remains on the sidelines, while the same homeowners continue to benefit from the lower monthly payments that helped create it in the first place."
Homeowners can now receive a pre-qualification offer in as little as three minutes and funding in as few as five days, compared with the 30 to 45 days typical of a traditional HELOC.
Aven's income verification process replaces many manual, in-person steps that can slow home equity lending.
At application, Aven runs only a soft credit inquiry, so completing an application won't impact your credit; there's no reason not to try it.
Secondly, Aven's product combines a revolving HELOC with optional fixed-rate payment plans called Aven Simple Loans, giving homeowners flexibility in how they borrow and repay.
Some of the features that make this product stand out include:
Every borrower is different, and qualification depends on credit, income, equity, and other underwriting requirements.
Self-employed applicants can now verify business ownership directly inside the application.
The borrower connects their business bank account, and roughly half of self-employed applicants are verified automatically, with no documentation required to verify ownership.
Applicants who cannot be verified through the connection upload a supporting document instead.
Income can also be calculated directly from your bank account records through the secure Plaid technology application. So, there's no need to provide bank statements.
A connected Plaid bank account is now verified by either an address match to the subject property or a name match to an applicant.
With an address match, you can count income from a household member who isn't on the application when that person's bank account address matches the subject property.
Also, Aven now confirms business ownership automatically on a large share of self-employed applications, which takes a document request off your list.
When automation cannot confirm ownership, the borrower uploads a Schedule K-1 or an operating agreement. Those documents establish ownership only. They are not used in the income calculation.
One feature that truly sets this program apart is that it isn't limited to your primary residence.
Qualified borrowers can also use this HELOC with investment properties and 2nd homes—something that's surprisingly difficult to find in today's lending market.
While many home equity products are restricted to owner-occupied homes, very few lenders offer flexible HELOC solutions for rental properties and vacation homes.
Also, an Aven HELOC can now be vested in an LLC!
For real estate investors and homeowners with multiple properties, this can provide access to equity without refinancing an existing low-interest first mortgage or selling an appreciating asset.
It's another way to put the equity you've worked hard to build to work for you.
Whether you're looking to access equity in your primary residence, a vacation home, or even an investment property, today's HELOC options offer more flexibility than many homeowners realize.
At Efficient Lending, my goal isn't simply to help you obtain a loan. It's to help you determine whether borrowing against your home's equity is the right financial move—and if it is, which option best fits your long-term goals.
Sometimes the best financial decision isn't borrowing more. Sometimes it's simply knowing your options.
Reach out to me directly. I'd love to talk strategy and explore how we can best use a HELOC to help you succeed.
Apply HERE for an Aven HELOC or schedule an APPOINTMENT with me to discuss in further detail.
Mike Nelson, Efficient Lending, Inc
720.419.3016 | mike@efficientlending.net | @mike_lending
NMLS: 1876539 | NMLS: 1314188
Licensed in CO, TX, FL
