Get Your Home Equity Line of Credit (HELOC) With Blue Water Mortgage

A home equity line of credit, often referred to as a second mortgage, lets you access funds as you need them, rather than receiving the full amount upfront, as with a traditional mortgage.

HELOCs can offer a flexible way to cover major expenses such as college tuition, credit card consolidation or unexpected costs. Every HELOC includes two phases: a draw period, typically lasting 5–15 years, during which you can borrow against your available credit, and a repayment period, usually 10–20 years, when the balance is paid back.

Fixed-Rate Conversion Options

Some HELOCs offer the ability to convert a large draw into a fixed-rate loan at the time of withdrawal, helping provide predictable payments when managing larger expenses.

Have questions about your HELOC options? The Blue Water Mortgage team is here to help. Fill out the form to get your rate quote, and a knowledgeable mortgage professional will review your inquiry and get back to you within 24 hours.

Blue Water Mortgage is licensed in New HampshireMaineMassachusettsConnecticutFlorida, North Carolina, Colorado, Texas, Georgia, and South Carolina.

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All HELOCs are variable rate loans. HELOCs have some great advantages:

  1. Pay interest only on what you draw
  2. Interest only accrues on what has been drawn from the line of credit, allowing you to only pay interest on what you need at the time.
  3. Closing costs are relatively low
  4. Closing costs on a HELOC are usually less than half of those on a standard loan.

If you are interested in taking out a home equity line of credit, talk to one of our brokers today.

Why Blue Water Mortgage?
No Surprises
No Surprises
With over 150 years of collective experience, our mortgage brokers have seen it all. This level of expertise enables us to anticipate and quickly resolve any issues that might arise and close on time, every time.
Personalized Services
Personalized Services
Buying a home is one of the biggest purchases you’ll make in your entire life. That’s why our brokers are available via phone 24/7 to address any concerns or answer any questions you might have about the mortgage process.
Competitive Rates
Competitive Rates
Blue Water is locally owned, so we aren’t beholden to banks. That means we’re able to offer a more diverse portfolio of mortgage products tailored to your specific needs, as well as more competitive rates and lower closing costs.
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What you can do with a Home Equity Line of Credit

Renovate Your Home

Increase your home’s value with a dream renovation.

Consolidate Debt

Save money by consolidating debt into a lower monthly payment.

Fund Education

Pay for education from kindergarten to college.

Make Large Purchases

Use your home equity to buy a car, take a trip or cover unexpected costs.

Request a Rate Quote

Whether you’re buying, refinancing or renovating a home, we’re able to offer you highly competitive rates by pricing our loans directly. Need an estimate quickly? Get an express quote by completing a short form and we’ll respond via email, typically within one hour during standard business hours.

Request a Rate Quote
Request a Rate Quote

Get Prequalified

Start by answering some questions about your financial situation. Then, one of our licensed. officers will review your information and get in touch about the programs, rates and loan terms that best fit your needs via your preferred method of communication.

Get Prequalified
Get Prequalified

Apply Online

Your fastest path to full approval.Applying is easy with our secure, user-friendly portal — enter your information at once or save your progress and return later. All pre-approvals are confirmed by our lending team, and we’ll be here every step of the way to ensure you get the best rate possible.

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Frequently Asked Questions

How many months of bank statements do I have to provide?

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Wondering how many months of bank statements for mortgage approval you’ll need to provide? Bank statements are a standard part of any mortgage application — they give lenders a clear view of your finances and help determine how much home you can afford. The required time frame can vary depending on the type of mortgage. Here’s a quick breakdown:

  • Fannie Mae (Conventional): Requires the most recent two months of bank statements for purchase transactions. For refinances, one month may be sufficient.
  • Freddie Mac (Conventional): Typically requires the most recent two months of bank statements.
  • FHA: Generally requires the most recent bank statement.
  • USDA: Requires the most recent two months of bank statements.
  • VA: Typically requires the most recent two months of bank statements.

Keep in mind that specific requirements can vary depending on the lender and your loan details. It’s always best to consult with a mortgage expert for personalized guidance.

How many years of income do I need to show if I’m a self employed borrower?

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A lender will always require that you provide proof of income as part of your mortgage application. For example, personal/business tax returns, pay stubs or W2s give a lender an up close and personal view of your finances — which is crucial when determining just how much money you can qualify for.

How far in the past you’ll need to go to get your bank statements ultimately depends on the mortgage product. See below:

  • Fannie Mae (Conventional): 2 years (personal and business returns).
  • Freddie Mac (Conventional): 1 year (personal and business returns).
  • FHA: 2 years.
  • USDA: 2 years.
  • VA: 2 years.

 

To learn more about the mortgage application process, be sure to speak with an experience mortgage broker.

Should I dispute any accounts listed on my credit report?

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With tools like Credit Karma, it’s easier than ever to view your credit — but that has also led to a rise in credit disputes, not all of which are necessary. While it might seem like a good idea to challenge questionable items, only dispute accounts you know are inaccurate.

Here’s why: When you dispute something, it can be temporarily removed or altered on your credit report. That might confuse underwriters and delay your mortgage approval.

For example, for Fannie Mae, disputed accounts can create extra work for lenders. If the item turns out to be valid, you may be required to remove the dispute and reprocess your application — extending the timeline.

The same goes for Freddie Mac, FHA, USDA and VA loans. Disputes can trigger manual underwriting or require extra documentation. Unless an account is clearly wrong, it’s usually better to leave it alone.

Need help reviewing your credit before applying? Talk to one of our mortgage experts. We’ll walk through it together and help you avoid anything that could delay your loan.

Can I exclude existing debts listed on my credit profile if my business pays for the debt each month?

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Whether the FHA excludes installment debt is a common inquiry among self-employed borrowers trying to qualify for a home loan. For instance, if you financed a truck in your name but your business makes the payments, you might wonder whether that debt can be excluded from your application.

Some mortgage programs, including ones backed by the FHA, may allow this — but only if you can provide substantial documentation proving the business is responsible for the debt. Here’s how it works across different loan types:

  • Fannie Mae and Freddie Mac (Conventional): Permitted if you provide 12 months of canceled checks, a CPA letter and business tax returns showing the debt is paid and expensed by the business.
  • FHA: Also allowed with the same documentation — 12 months of canceled checks, a CPA letter and business returns reflecting the debt as a business expense.
  • USDA: May be allowed on a case-by-case basis. Speak with a mortgage expert for specific guidance.
  • VA: Possible, but requirements vary. Consult a mortgage expert to understand your options.

Connect with the experts at Blue Water Mortgage. We’re here to help you navigate your options with clarity and confidence.

Can we use my higher credit score to qualify for a better rate without using my spouses?

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The answer is: No. If you and your spouse are applying for a home mortgage loan, an underwriter will look at each of your three scores and select the lower middle lowest score when determining the applicable interest rate. This is universal no matter the mortgage product See below:

  • Fannie Mae (Conventional): Financing is based on the lower middle score of each borrower. For example, if borrower 1 has a 700, 720, and 730 and borrower 2 has a 680, 690 and 700 then the 690 would be the score that the interest rate is based on.
  • Freddie Mac (Conventional): Financing is based on the lower middle score of each borrower. For example, if borrower 1 has a 700, 720, and 730 and borrower 2 has a 680, 690 and 700 then the 690 would be the score that the interest rate is based on.
  • FHA: Financing is based on the lower middle score of each borrower. For example, if borrower 1 has a 700, 720, and 730 and borrower 2 has a 680, 690 and 700 then the 690 would be the score that the interest rate is based on.
  • USDA: Financing is based on the lower middle score of each borrower. For example, if borrower 1 has a 700, 720, and 730 and borrower 2 has a 680, 690 and 700 then the 690 would be the score that the interest rate is based on.
  • VA: Financing is based on the lower middle score of each borrower. For example, if borrower 1 has a 700, 720, and 730 and borrower 2 has a 680, 690 and 700 then the 690 would be the score that the interest rate is based on.

 

To learn more about specific mortgage requirements, be sure to speak with an experience mortgage broker.

If in the middle of the process I’ve been told my debt ratio is too high to qualify, can I then pay credit cards to better qualify?

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In general, paying off credit card debt before a mortgage closing date is a smart move. It can lower your debt-to-income ratio and improve your chances of qualifying for a mortgage. However, many borrowers discover during the loan process that they need to reduce their debt-to-income ratio even further.

Mortgage brokers often recommend paying off credit card debt to help with this.

That said, you may have a follow-up question: Do you need to close the credit card account after paying it off? The answer depends on the type of mortgage you’re applying for. Here’s a breakdown:

  • Fannie Mae (Conventional): You can keep your credit card account open after paying it off, but the underwriter may require it to be closed if needed for loan approval.
  • Freddie Mac (Conventional): The same applies at Fannie Mae — the account can stay open after payoff, but it might need to be closed if the underwriter thinks it’s necessary.
  • FHA, USDA and VA: The account must be closed after paying it off.

For more tips on how to improve your financial situation before buying a home, check out this blog post: How to Repair Poor Credit Before Securing a Home Loan.

How do open charge cards (AMEX) impact my debt ratio?

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When applying for an Amex mortgage loan or any home financing, it’s important to understand how different types of credit impact your debt-to-income ratio. Traditional revolving credit cards can affect your ratio based on the balance at the time your credit is pulled. But open charge cards, like those from American Express (AMEX), work differently — since they must be paid in full each month, they’re treated uniquely by lenders.

So for instance, if you typically charge $10,000 to your open charge card each month, but always end up paying it off, do you have to factor in the $10,000 monthly payment to your debt ratio? The answer is generally no, provided you’re able to prove you can afford this debt, as well as satisfy a few other requirements. See below:

  • Fannie Mae (Conventional): May exclude the payment if you show bank statements with enough liquid funds to cover the full balance.
  • Freddie Mac (Conventional): Typically includes 5% of the balance in your debt ratio, unless you provide bank statements showing you can pay it in full.
  • FHA, USDA, VA: Guidelines vary — contact a Blue Water Mortgage expert for personalized guidance.

How does Student Loan Debt impact my debt ratio?

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The impact your student loan debt will have on your chances of getting a home mortgage loan has changed greatly over the years. It used to be that whatever student loan debt you had didn’t necessarily harm your chances of getting a loan, especially if you’ve deferred your loans for a few years. These days, things are very different.

These days, whether you’ve deferred your loans or not, your student loan debt will undoubtedly have to be factored into your debt-to-income ratio and therefore can be a make-or-break factor in whether you get approved for a mortgage or not. The actual amount of your student loan debt that will be factored in to your debt-to-income ratio ultimately depends on the mortgage product. See below:

  • Fannie Mae (Conventional): Regardless of your deferment or repayment status, you must use the larger figure of the following when figuring out your student loan’s impact on your debt-to-income ratio: either 1% of the balance or the actual documented payment. (*You can only use the documented payment if you can prove that the monthly payment is sufficient to pay the loan in full based on the loan term/amortization schedule.)
  • Freddie Mac (Conventional): Regardless of deferment or repayment status, you must use the documented payment, even if it’s less than the 1% rule.
  • FHA: Regardless of deferment or repayment status, you must use the larger figure of the following when figuring out your student loan’s impact on your debt-to-income ratio: either 1% of the balance or the actual documented payment. (*You can only use the documented payment if you can prove that the monthly payment is sufficient to pay the loan in full based on the loan term/amortization schedule.
  • USDA: You may use either the documented payment or 1% of balance if not documented. You cannot omit deferred loans.
  • VA: Contact a mortgage expert for more info.

 

To learn more about specific mortgage requirements, be sure to speak with an experience mortgage broker.