HELOC Loans, perhaps better known as Home Equity Lines of Credit, allow you to borrow against the value of your home, effectively establishing a second mortgage. However, if you already own your home, then a HELOC could serve as a primary mortgage.
A HELOC is ideal for a borrower who needs access to a large amount of cash quickly. Urgent home improvement projects are a leading example for a borrower seeking a HELOC Loan. However, HELOCs come with fairly strict eligibility requirements, so are often regarded as a last resort in an emergency.