BFF's HELOC gives borrowers a revolving line of credit against their home's equity — $100K to $1M, without touching the first mortgage. A 5-year draw period followed by a 25-year repayment makes this the right fit when borrowers need flexible, ongoing access to funds.
Program at a Glance
BFF's HELOC gives borrowers a revolving line of credit secured against their home's equity — without refinancing their first mortgage. With a 5-year draw period and 25-year repayment (30-year total term), borrowers have flexible, ongoing access to capital. The rate is variable, indexed to WSJ Prime, with a 4% floor and 18% life cap. Primary residence, second home, and investment property all qualify. Minimum line: $100K. Maximum line: $1M. Combined HELOC + first lien balance cannot exceed $2M.
Key parameters from the BFF HELOC Matrix. Download the PDF for complete guidelines before pricing any HELOC scenario.
| Parameter | Requirement |
|---|---|
| Line Range | $100,000 – $1,000,000 |
| Combined HELOC + 1st Lien Balance | Not to exceed $2,000,000 |
| Max HCLTV — Primary (2nd TD, ≤$500K) | 90% Full Doc / 85% Bank Stmt (FICO 720+) · 90% / 85% (FICO 740+) · 90% / 85% / 75% P&L (FICO 700+) · 85% / 75% / 70% (FICO 680+) |
| Max HCLTV — Primary (2nd TD, $500K–$750K) | 80% Full Doc / 75% BS (FICO 720+) · 70% / 70% (FICO 700+) |
| Max HCLTV — Primary (2nd TD, $750K–$1MM) | 65% Full Doc / 65% BS (FICO 720+) · Not eligible (FICO 700+) |
| Max HCLTV — Second Home (2nd TD, ≤$500K) | 85% Full Doc / 85% BS (FICO 740+/720+) · 85% / 85% / 70% P&L (FICO 700+) · 75% / 75% / 65% (FICO 680+) |
| Max HCLTV — Investment (2nd TD, ≤$500K) | 75% Full Doc / 75% BS / 75% P&L / 70% DSCR (FICO 740+) · 70% all (FICO 720+) · 70% / 70% / 70% / N/A (FICO 700+) |
| 1st Lien HELOC | Permitted — max 80% LTV/CLTV; full appraisal and full title policy required; concurrent closing not allowed |
| Min FICO | 680 (certain loan amount / occupancy tiers require 700–740+) |
| Max DTI | 50% (line ≤$500K) · 43% (line >$500K) |
| Occupancy | Primary Residence · Second Home · Investment Property |
| Income Doc Types | Full Doc (W-2 / tax returns) · Bank Statements (12 mo) · P&L (12 or 24 mo, CPA/EA prepared) · DSCR ≥1.10 (investment only) |
| Ineligible Income Docs | Asset Depletion · Written VOE · 1099 |
| Product / Rate | Variable Rate HELOC — WSJ Prime Rate + margin (floor 4%, life cap 18%) |
| Draw Period | 5 years |
| Repayment Period | 25 years |
| Total Term | 30 years |
| Draw Rules | Initial draw: 100% of line amount required. No additional draws for 180 days post-closing. Subsequent draws: $5,000 minimum. Draw period: interest-only payment. |
| Property Types | SFR · PUD · Townhome · Warrantable Condo (full review, max 80% CLTV) · 2–4 Unit |
| Ineligible Property Types | Non-warrantable condos · Condotels · Co-ops · Manufactured / log homes · Rural properties · Commercial / agricultural zoned |
| Derogatory Seasoning | 4-year seasoning on foreclosure, bankruptcy, short sale, and deed-in-lieu |
| Property Listed for Sale | Properties listed for sale within the past 6 months are ineligible |
| Early Termination Fee | 5% if line is closed within the first 12 months |
| Ineligible States | MA · MD · NJ · NY · PA · TN · TX · WV |
Borrowers with a multi-phase renovation who don't know the exact total cost upfront. The revolving draw lets them access funds as each phase progresses — only paying interest on what's drawn.
Borrower locked a 3% first in 2021. They need recurring access to capital. A HELOC lets them draw as needed without refinancing their first — interest accrues only on the outstanding balance.
Self-employed borrowers with significant home equity who need flexible capital access. Bank statements and P&L documentation accepted. Variable access to funds matches unpredictable business cash needs.
Real estate investor with equity in a rental. DSCR documentation qualifies on rental income vs. combined payment — no personal income analysis needed. 2nd TD on investment up to 75% HCLTV (FICO 740+).
Borrowers who want a credit line available for emergencies but don't need all the funds immediately. The 5-year draw period provides long-term access; interest accrues only on outstanding draws.
Ongoing expenses with uncertain timing and amounts. The revolving structure is better suited than a lump-sum second mortgage when the borrower needs to draw at irregular intervals over multiple years.
A HELOC is a revolving line of credit — the borrower draws funds, repays them, and can draw again during the 5-year draw period. The rate is variable (WSJ Prime + margin). A closed-end second mortgage disburses a fixed lump sum at closing with a set repayment schedule and a fixed rate. A HELOC is better for borrowers who need ongoing or uncertain access to funds; a closed-end second is better for borrowers who know the exact amount they need and want payment certainty. BFF offers both products.
HCLTV (Home Combined Loan-to-Value) is calculated by adding the maximum line amount of the HELOC to the total outstanding balance of the first lien, then dividing by the property's appraised value. For example: $600K first mortgage + $200K HELOC line = $800K combined. HCLTV = $800K / $1M property = 80%. Always use the full line amount (not the drawn amount) for HCLTV, even if the borrower doesn't intend to draw the full line at closing.
During the 5-year draw period, the minimum payment is interest-only on the outstanding balance (greater of accrued interest or $100). After the draw period, the line enters the 25-year repayment period — no further draws are permitted and the payment becomes a fully amortizing principal and interest payment based on the outstanding balance at that time. The initial draw must be 100% of the total line amount at closing. No additional draws are allowed for 180 days post-closing; subsequent draws have a $5,000 minimum.
Yes. Investment property is eligible on DSCR documentation — the property qualifies based on its gross rental income relative to the PITIA of the subject property (DSCR ≥1.10). Short-term rentals (AirBNB, VRBO, FlipKey) are not permitted for DSCR qualification. Full doc and bank statements are also accepted for investment property. Maximum HCLTV for investment (2nd TD, ≤$500K) is 75% Full Doc/BS/P&L at FICO 740+, and 70% at FICO 720+.
The HELOC is not available in Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Tennessee, Texas, or West Virginia. These eight states are completely ineligible — there are no exceptions based on property type, occupancy, or loan amount. Always confirm state eligibility before pricing a scenario.
Yes. A 5% early termination fee applies if the HELOC line is closed within the first 12 months of origination, except where prohibited by federal or state law. There is also an annual fee of $25, a $25 return check fee, a $50 stop payment fee, and a late charge of 5% (or the maximum allowed by state law) on any payment received after the 10th calendar day.
BFF HELOC Matrix — Rev. Jul 2026
MA · MD · NJ · NY · PA · TN · TX · WV — completely ineligible. Verify before pricing.
Investment property qualifies on DSCR (≥1.10). Rental income vs. PITIA. No personal income docs required.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
