If you're seeking funding for home renovation, an investment, a major purchase, debt consolidation, or any number of other reasons or projects, an Upstart Mortgage HELOC can be a solution option. While it doesn't quite make the top five list in our overview of the best home equity loan providers, it does offer several perks.
Upstart Mortgage's long lineup of personal finance solutions now includes an option for a home equity line of credit or HELOC. A home equity line of credit is a revolving account that allows you to borrow money using the equity in your home as collateral. An Upstart Mortgage HELOC allows you to draw money up to your credit limit for three years and has a repayment period of 10 or 15 years.
Here's what you need to know about Upstart Mortgage's HELOC offering.
Pros
- Variable rate with fixed rate on draws1
- Money available in as little as six days2
- Minimum credit score of 600
- Borrow between $26,000 and $250,000
Cons
- Co-signers not allowed
- Not available in all states
Upstart Mortgage HELOC Features and Benefits
Upstart Mortgage's home equity lines of credit begin with a variable rate APR. However, draws you take against your credit limit are locked in at a fixed interest rate. Unlike a cash-out refinance or other home equity loan product, Upstart Mortgage doesn't require that you have your home appraised for your HELOC.
Upstart Mortgage's use of AI includes determining the value of your home online and also has the ability to help you get approved. Upstart Mortgage is a leader in our review series partially due to its willingness to look past simple debt-to-income ratio and credit score requirements to evaluate your overall financial picture.
AI-assisted approval process
Preapproval won't affect your credit score
No hidden fees
Home appraisal not required
Apply and close online
HELOCs can close in as little as six days
No prepayment penalty
Fixed-rate APR on funding draws
Upstart Mortgage HELOC: Editorial Rating
Trusted Company Reviews Rating Score for Upstart Mortgage: 9.0
While a HELOC from virtually any reputable lender can be a sound financial tool, the bottom line is that Upstart Mortgage offers some of the lowest available APRs among its competitors, which, while subject to change is between 8.25% and 18%3. However, you'll need excellent credit and a solid DTI ratio to get the best rates. We awarded Upstart Mortgage high marks for this fact and for its overall flexibility for borrowers.
APR | Loan Amount Range | Minimum Credit Score | Term Lengths |
8.25% to18.00%3 (subject to change) | 26,000 to $250,000 | 600 | 3-year draw period 10 or 15-year repayment period |
What We Like
Three primary factors top the list of why we like Upstart Mortgage and its HELOC financial products. First, it has competitive rates that are available to those with excellent credit. Second, Upstart has a low minimum credit score requirement of 600. Your credit score matters, but the company's AI-assisted approval process means that borrowers with lower scores may get approved at Upstart Mortgage, where they might not be with other lenders. Finally, we like that the entire process, from application to closing and receiving funds, can take place online.
What We Don't Like
Despite Upstart Mortgage's impressive list of HELOC benefits, it's important to note that Upstart Mortgage makes a note on its website that cosigners and co-borrowers are not allowed, which can exclude some borrowers.
About Upstart Mortgage
Upstart Mortgage prides itself on its commitment to using AI assistance to help more borrowers get more in terms of better loan approval odds, higher loan amounts, and lower interest rates. The company claims that it approves 101% more applicants than lenders that use traditional loan approval methods.
Upstart Mortgage's HELOC application process is an entirely online experience with a preapproval process that won't affect your credit score and can provide several borrowing options for you to choose from. Upstart Mortgage won't perform a credit-score-affecting credit check unless you select one of its borrowing options and commit to formally applying.
Terms and Conditions
You'll receive full documentation from Upstart Mortgage when you apply for its HELOC product. However, some key points include the following statements quoted from its website.
1. When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information will be reported to the credit bureaus.
2. A Home Equity Line of Credit has a variable rate. The APR may change, but the APR that will apply to each draw will be fixed on the date the draw is made. Your APR will be the Prime Rate at the time of draw plus a margin fixed for the life of the HELOC.
3. Terms shown here are subject to change without notice. Origination fee to open an account is between 1.00% and 4.99%4 of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal "Money Rates" table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.000%. Property insurance is required. Ask us for additional details.
An additional consideration apart from the website list includes the fact that borrowers must draw a minimum of 80% of their approved credit limit at origination.
Requirements
Upstart Mortgage is committed to approving as many customers in as many situations as possible. However, there are still a few minimum basic requirements that borrowers must meet before obtaining approval.
Must have a credit score of at least 600
Have at least 20% equity in your home
Have no delinquent accounts on your credit report
Have no bankruptcies within the past three years
Must have fewer than six credit report inquiries in the past six months
43% or less debt-to-income ratio
Be able to verify your income with documentation
Be at least 18 years old with a Social Security Number
Have a U.S. address
Have a valid email account and personal banking account at a U.S. bank
How to Apply for an Upstart Mortgage HELOC
Upstart Mortgage features one of the fastest turnaround times from application to receiving your funds. Unlike borrowing from a traditional lender, which can require several weeks of waiting for home equity borrowing, getting a HELOC from Upstart Mortgage can take as little as six days. Getting your HELOC is straightforward and can be done entirely online.
Navigate to Upstart Mortgage's HELOC page and choose the Check Your Rate button.
Fill in each personal and financial question as they come up on the screen.
Continue until you're given the option to submit your request.
Remember to provide only accurate information, as it will be checked later, and you could be denied approval if your credit check reveals
information other than what you provided during the application process.
Wait up to several minutes for your loan options.
Review and select the HELOC option that works best for you
Submit your formal application online
If approved, you'll have an online meeting with a notary to sign your HELOC documents.
Wait the required three days to allow time to change your mind.
Receive funding in as little as six days as a direct deposit to your bank account.
Upstart Mortgage HELOC Alternatives
Upstart Mortgage regularly approves loans for those with less-than-stellar credit scores, and rates highly among customers and experts. However, borrowers looking for a longer repayment period or who don't live in one of the states that Upstart services can do well by shopping around. Here are some other contenders in our best home equity loan providers overview.
Frequently Asked Questions
Source
Logo image: upstartmortgage.com
Disclosure
All mortgage lending conducted by Upstart Mortgage, LLC. UML State Licenses . NMLS #2443873
(1) A Home Equity Line of Credit has a variable rate. The APR may change, but the APR that will apply to each draw will be fixed on the date the draw is made. Your APR will be the Prime Rate at the time of draw plus a margin fixed for the life of the HELOC
(2) As of December, 10% of funded HELOCs achieved a closing timeline of 5 days or less and a funding timeline of 11 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline.
(3) Terms shown here are subject to change without notice. APRs for initial advances range from 8.25% to 18.00% based on funded HELOCs as of September 2024. Your actual rate will depend on many factors such as your credit history, loan-to-value ratio, line amount, loan term, lien position, and property state. The lowest rates are only available to the most qualified applicants. Origination fee to open an account is between 1.00% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.000%. Property insurance is required.
(4) Terms shown here are subject to change without notice. Origination fee to open an account is between 1.00% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal "Money Rates" table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required. Ask us for additional details.between 1.00% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.000%. Property insurance is required.
About Author
Deane Biermeier
Deane Biermeier is a certified financial educator through the University of Minnesota and a respected authority in financial research, writing, and editing, renowned for his in-depth analyses and expert advice. With a distinguished career that previously spanned home improvement, real estate, and finance topics, Deane's role at Trusted Company Reviews focuses exclusively on finance. Deane has contributed to leading publications such as Forbes Home, US News and World Report, Newsweek Vault, and others. Since joining TrustedCompanyReviews.com in 2023, he has solidified his reputation as a crucial resource for clear, factual financial guidance.