Home equity line of credit
A home equity line of credit gives your business revolving capital at some of the lowest rates available. Secured by your home, flexible in use and ready to draw again as you repay.
- Lower rates than unsecured financing
- Draw, repay and draw again
- Secured by your home
Simple, fast and clear.
- Up to 85%
- Of your home equity
- 600+
- Minimum credit score
- $150K+
- Yearly revenue
- 6+months
- In business
How a home equity line of credit works.
You open a line of credit secured by your home and sized to the equity you have in it. You draw on it for the business as you need to, and pay interest only on what you’ve drawn.
The line has a draw period, when you draw and repay as you go, then a repayment period when the balance is paid down. Because the home secures it, the rate is lower than unsecured business financing.
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How much. Your mortgage balance and the line together stay within 85% of the home’s value. The more of the mortgage you’ve paid down, the larger the line.
What’s reviewed. Your credit, your income and what you already owe, along with the home’s value, which is set by an appraisal.
What it costs. Interest on what you’ve drawn, plus any closing costs or appraisal fee. Compare offers by every fee in dollars and by how the rate is set.
The trade-off. The lower rate comes from the home as security. It suits spending you expect to pay for itself.
Home equity lines of credit at a glance.
- Revolving
- Draw, repay and draw again, secured by your home equity
- Lower rates
- Lower than unsecured business financing
- Flexible use
- Any business purpose, with a 600+ credit score
Compare your options.
See how Noya Funding stacks up against other financing sources.
| Traditional Bank | Other Online Lenders | ||
|---|---|---|---|
| Funding Speed | Varies by lender | 30-90 days | 2-7 days |
| Funding Amount | Up to 85% of home equity | $50K-$5M | $5K-$500K |
| Hard Credit Pull | None to apply | Always | Usually |
| Min. Annual Revenue | $150K+ | $250K+ | $100K-$250K |
| Min. Credit Score | 600+ FICO | 680+ FICO | 550-600+ FICO |
| Collateral Required | Your home | Often | Sometimes |
| Time in Business | 6+ months | 2+ years | 1+ year |
| Dedicated Advisor | Always | Never | Sometimes |
| Documents Needed | Bank statements + home valuation | Full financials + tax returns | Varies |
| Application Time | 5 minutes online | Days to weeks | 1-3 days |
| Apply NowApplying won’t affect your credit score. |
What small businesses use a home equity line of credit for.
Expansion
A second location, a larger space or a new line of service.
Equipment and vehicles
Machines and trucks for the business.
A build-out in stages
Draw as the work moves, and pay interest only on what’s been spent.
Refinancing
Higher-cost business balances moved to a line at a lower rate.
Stock for the season
Inventory bought ahead and repaid as it sells.
A reserve
A line available for an opportunity, with no interest until you draw.
When a home equity line of credit is the right choice.
A home equity line makes sense when you have real equity in your home, a capital need that comes and goes, and want the lowest cost of borrowing.
You have home equity and an ongoing need
Seasonal inventory, ongoing working capital or equipment bought from time to time. Instead of new financing each time, one line covers it all: draw as you need to, at a lower rate, and draw again as you repay.
You want the lowest rate on business capital
Unsecured financing costs more than a line secured by your home. If cost matters most and you have the equity, a home equity line carries a lower rate than unsecured business financing, and you pay interest only on what you draw.
You want to keep business and personal financing apart
Some owners keep a home equity line as a low-cost reserve and use working capital or a business line of credit for day-to-day operations. Your funding specialist can help you decide which need goes where.
All you need to qualify.
We look at more than your credit score: your home equity, your revenue history and time in business all count. A business with strong cash flow may qualify even with imperfect credit.
- No hard credit pull to apply
- No upfront fees
- Up to 85%
- Of your home equity
- 600+
- Minimum credit score
- 6+months
- In business
Three steps to your funding.
- 1
Apply online
Fill in our short application in a few minutes. A few basics about your business and what you need, with no stack of paperwork to get started.
- 2
Get your options
Our team reviews your application and brings you the options that fit your business. We look at revenue, deposits and time in business, not only your credit score.
- 3
Receive your funds
Once you’re approved and the documents are signed, the funds can be in your business bank account in as little as 24 hours.
Frequently asked questions.
Is Noya Funding a lender?
Noya Funding is a business funding broker. We work with a wide network of lenders: our team reviews your application, matches you with the options that fit your business and stays with you through funding.
Does applying affect my credit score?
No. There’s no hard credit pull to apply, so applying won’t affect your credit score.
Can I use a home equity line for my business?
Yes. Once the line is open, draw on it for any business purpose: equipment, stock, expansion or payroll.
How much can I draw?
Up to 85% of your home’s value, less what you owe on the mortgage. On a $600,000 home with $300,000 owing, that’s up to $210,000.
What’s the risk?
The line is secured by your home. That security is what keeps the rate low, and it’s why the line suits spending you expect to pay for itself.
Is the rate fixed?
Most lines carry a variable rate that moves with a benchmark, so payments change with it. Some let you fix the rate on part of the balance.
How long does it take to open?
Longer than unsecured financing, because the home is appraised and its title checked before the line opens.
Which states do you work in?
Every state except Texas, Virginia, Connecticut and Missouri, where we can’t take requests yet.
Ready to get funded?
Apply online in minutes. No collateral, no hard credit pull and no obligation.