HELOCs are great tools for Purchases (avoid MI, create Jumbo financing with a conforming or HB first, “rescue Jumbo loans that hit a bump in the road”. HELOCs are also great for
Refinances. Same Pricing for Purchase and Refinance transactions, same 89.99% Max CLTV (Primary Residence). HELOC can be used to pay off debt at closing, even to qualify.
The borrower can choose a full draw at closing, or a partial draw or can elect no draw at closing. They will mail checks and a debit card (borrower must choose this option) 2-3 weeks after closing.
HELOC must either: close simultaneously with your first mortgage (Purchase or Refinance) or you must submit to TCF within 80 days of your first mortgage closing. The first cannot have been originated by another company.
The first mortgage can be FHA or Conventional. It can be Conforming, High Balance or Jumbo.