Hitch - Hitch HELOC - A Flexible Solution for Your Home Down Payment

Hitch HELOC - A Flexible Solution for Your Home Down Payment

Apr 30, 2023

Are you planning to buy a home but struggling to determine how much to put down as a down payment? With the rising costs of real estate, it can be challenging to come up with a significant amount of cash upfront. However, Hitch has a flexible solution that can help - a Home Equity Line of Credit (HELOC).

A HELOC is a type of loan that allows you to borrow against the equity in your home. You can use the funds for a variety of purposes, including making a down payment on a new home. The amount you can borrow depends on the equity you have built up in your home, your credit score, and other factors.

One of the benefits of using a HELOC for your down payment is flexibility. With a traditional mortgage, you are required to make a down payment of at least 5-20% of the home's purchase price. However, with a HELOC, you can borrow as much or as little as you need, up to the maximum limit of your credit line. This means you can put down as much as you want, without being tied to a specific percentage.

Another advantage of using a HELOC for your down payment is the potential tax benefits. The interest you pay on your HELOC may be tax-deductible, as long as the funds are used to buy, build, or improve your home.

However, there are some things to keep in mind when considering a HELOC for your down payment. First, borrowing against your home's equity means you are using your home as collateral. If you cannot make your payments, you could be at risk of losing your home. Additionally, the interest rates on a HELOC may be higher than on a traditional mortgage, so it's important to shop around and compare rates before making a decision.

In conclusion, a HELOC can be a flexible and convenient way to finance your home down payment. At Hitch, we offer competitive rates and expert guidance to help you navigate the process. Contact us today to learn more about our HELOC options and how we can help you achieve your homeownership dreams.

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Hitch, Inc. 23833672158 NW Toussaint Drive. Bend, Oregon 97703

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1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.

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