How long does it take to get a home equity loan?

It’s not an instant process, but typically takes less time than a standard mortgage.

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Home equity loans and HELOCs are both ways to obtain cash while borrowing against the value of your home. But while HELOCs open up a line of credit for ongoing use, home equity loans offer a lump sum of cash — and tend to be approved more quickly.

How long does it take for approval on a home equity loan?

It can take anywhere from 14 to 28 days for a lender to process and approve your application for a home equity loan. But keep in mind that the exact amount of time it takes varies depending on the lender, your financial situation and how quickly you can get the paperwork together.

What affects my approval time?

Several factors can affect the time it takes you to receive your funds, including:

  • The application. Most applications require a copy of your current mortgage statement, property tax bill and proof of income. Keep these documents handy throughout the process.
  • Verification. The lender takes time to verify the information you’ve provided, including your source of income. It’ll also probably check out:
    • Your credit score. If your credit score is weak, that could delay the process.
    • Your debt-to income ratio. To ensure you’ll be able to pay back the loan without hardship.
    • Property debt. It’ll likely run a title search to check for existing debt on the property.
  • Home valuation. You’ll need an appraisal to verify what your home is worth. The lender typically assists with this.
  • Closing. A notary will meet with you to sign, seal and deliver the documents. Some states require an attorney to be present for this part.

Can my credit score affect timing?

A low credit score could slow down the underwriting process, which is when lenders determine whether or not you’re eligible for a loan. If your credit score is between 620 and 700 on the FICO scale, it could signal that a more in-depth review of your financial history is required. A credit score lower than 620 may outright exclude you from being approved.

What documentation will I need?

Staying organized throughout the process will help speed things up. Documentation you might need to provide includes:

  • Copy of the property’s deed
  • Most recent pay stub
  • Tax returns from the last two years
  • Mortgage statement
  • Trust agreement documents, if applicable

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Compare lenders who offer HELOCs

Name Product Max LTV Min. credit score State availability
95% (CLTV)
600
Not available in: AK, DE, HI, IA, KY, MD, NY, SC, TX, UT, VT, VA, WV
Fast turnaround and competitive fixed rates for qualified borrowers with only an origination fee.
80%
620
Available in all states
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How soon after approval can I receive funding?

Exactly how long it’ll take to get your money after approval depends on the lender. However, when your home is on the line as collateral, federal law allows you to cancel the loan within three days after signing the credit contract. So, typical turnaround time for the cash to hit your account is about four days.

Bottom line

Getting a home equity loan can take anywhere from two to four weeks, depending on a number of factors. And since your home is on the line, the process shouldn’t be rushed. Take some time to shop the market first to find the best fit for your situation.

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