The Home Equity Loan (HELOAN) and Home Equity Line of Credit (HELOC) are similar in a few ways:
- Both loans will take second lien position on your property
- Both loan terms may be affected by how much is being borrowed and by how qualified the prospective buyer is to purchase the property. Generally, a better credit rating will get you a better rate.
- Both loans generally carry minimal or no closing costs
Here is a helpful breakdown of differences between a HELOC vs Home Equity Loan.