Home Equity Loans FAQs
Learn how to access your home’s equity and turn it into real financial opportunity
Frequently Asked Questions
What is a Home Equity Loan?
A home equity loan lets you borrow money using the value you’ve built in your home.
Think of it this way:
• Your home has a market value (what it’s worth today)
• You may still owe money on your mortgage or property taxes
• The difference between those two is your equity
Example:
If your home is worth $250,000 and you owe $100,000, you may have $150,000 in equity.
A home equity loan allows you to turn a portion of that equity into cash.
What makes a Home Equity Loan an attractive option?
A home equity loan can be a great option because it allows you to access cash without selling your home.
At SWE Lending, we make the process simple and flexible:
• No minimum credit score required – ALL Credit OK.
• Fast approvals and closings
• Fixed interest rates
• Use your funds for almost anything
It is a practical solution for homeowners who have equity and need access to cash quickly.
How much can I borrow?
The amount you can borrow depends on how much equity you have in your home.
At SWE Lending, we typically lend up to 60% of your home’s value. This is called your Loan-to-Value (LTV).
We look at your home’s current value and calculate up to 60% of that amount. If you already have a mortgage, property taxes owed, or other liens, those are included in that total.
The remaining amount may be available to you as cash.
Simple example:
• Home value: $200,000
• 60% of value: $120,000
• Existing loan balance: $80,000
You could receive up to $40,000
We understand that no two borrowers are the same. Every loan is reviewed based on your equity, your needs, and your ability to repay.
Is the interest rate fixed or variable?
At SWE Lending, our home equity loans have a fixed interest rate, so your payment stays consistent over time.
Are there fees required upfront?
At SWE Lending, there are no application fees and no charge for us to review and provide loan terms.
The only out-of-pocket costs are:
• A required homeowner education course
• An appraisal fee (if applicable)
Is there a fee to start the process or apply?
No. There are no application fees, no credit report fees, and no cost to review your loan scenario.
Is there a minimum credit score?
No. At SWE Lending, there is no minimum credit score required. All credit is considered.
We look at the full picture, including:
• The value and marketability of the property
• Your debt-to-income (DTI)
• The loan-to-value (LTV)
Our goal is to find a solution based on your situation, not just your credit score.
How long does it take to get a Home Equity Loan?
We typically fund home equity loans in about 21 days.
These loans do have required waiting periods, which are part of Texas regulations, before closing and funding can take place.
Can I get cash out if I already have a mortgage?
Yes, you may still be able to access cash even if you already have a mortgage.
We include your existing mortgage balance when calculating how much you can borrow. As long as you have enough equity in your home, you may qualify for additional funds.
Example:
• Home value: $200,000
• Maximum loan (60%): $120,000
• Existing mortgage: $80,000
You could receive up to $40,000 in cash
Every situation is different, so we will review your property, your current loan, and your goals to determine what options are available to you.
How long are the loan terms?
For homestead loans, terms typically range from 10 to 30 years, depending on your goals and loan structure.
Is there a prepayment penalty?
Most of our loans do not have a prepayment penalty.
This gives you the flexibility to:
• Pay down your loan early
• Refinance with another lender
• Sell your property at any time
What documents are required?
We typically request the following:
• Valid identification and Social Security Number or ITIN
• 1 month of pay stubs (if employed) or 12 months of bank statements (if self-employed)
• 2 years of tax returns and W2s or 1099s (if filed)
• A recent utility bill
If applicable for business owners:
• Operating agreement
• Certificate of formation
• Certificate of filing
• EIN letter
If you do not have all of these documents, let us know. We can work with you to find acceptable alternatives.
What is the difference between a Homestead and an Investment Property?
The main difference comes down to how the property is used and the rules that apply to the loan.
Homestead (Primary Residence)- A homestead is the home you live in full-time.
An investment property is a home you do not live in, such as:
• Rental properties
• Fix and flip projects
• Second homes
Is approval based only on credit?
No. Many borrowers believe credit is the deciding factor, but SWE Lending takes a broader approach. We review property value, income, repayment ability, and overall financial stability. Past bankruptcies, delinquencies, or credit challenges do not automatically disqualify a borrower.
What causes delays or declines?
The most common issue is title problems, such as unreleased liens or heirship gaps. Unlike many lenders, SWE Lending has deep experience resolving title complexities. Our flexible, common-sense approach allows us to navigate obstacles and keep loans moving.
Does the time of year affect when I should apply?
No. As a Private Direct Lender, we assist homeowners year-round. While there’s never a “wrong” time to apply, borrowers often use home equity for different needs throughout the year, such as:
• Early in the year to catch up on property taxes
• Spring or summer for home renovations or improvements
• Toward the end of the year for debt consolidation or business planning
We help homeowners access their equity whenever the need arises. Your home’s equity is one of your most valuable resources, and we’re here to help you use it confidently and responsibly