DOES MY PROPERTY QUALIFY FOR A HOME EQUITY LOAN OR LINE?
- Property Located in MA, RI, or Southern NH
- Primary Residences Only
- 1-4 Family Home or Condo
IF I ALREADY HAVE A HOME EQUITY LINE AM I ELIGIBLE FOR AN INCREASE?
Yes, please apply online. There are no fees if it is once per calendar year.
WHAT IS THE "DRAW PERIOD" ON A HOME EQUITY LINE?
The Draw Period is the period of time you can access funds from your Home Equity Line. Direct offers a 10-year draw period with interest-only monthly payment options.
WHAT IS THE "REPAYMENT PERIOD"?
At the end of your 10-Year Draw Period, you will enter the Repayment Period. The Repayment Period is the time during which you make monthly principal and interest payments to gradually pay off your balance.
I WOULD LIKE TO OPEN A HOME EQUITY LOAN OR LINE. WHAT IS THE MINIMUM OR MAXIMUM AMOUNT I CAN APPLY FOR?
With Direct Federal, you can open a Home Equity Loan or Line for any amount between $20,000 and $500,000.
CAN I PAY OFF A HOME EQUITY LOAN OR LINE WITH ANOTHER LENDER USING A DIRECT FEDERAL HOME EQUITY LOAN OR LINE?
WHAT FEES OR COSTS ARE ASSOCIATED WITH A HOME EQUITY LOAN OR LINE FROM DIRECT FEDERAL?
There are no application fees, no closing costs, and no annual fees associated with a Direct Federal Home Equity Loan or Line. If the line is closed within the first two years of being opened an early termination fee of $395 would be applied.
Requested Lines for $250,000+ require an appraisal. Also, if you believe your home value is higher than our assessed value, an appraisal may be required in order for us to approve the amount requested.
Appraisal Fee Estimates: Single-Family $500 and Multi-Family Properties $650
HOW MUCH CAN I BORROW?
You may borrow up to a maximum loan-to-value (LTV) of 80%.
HOW LONG DOES IT TAKE TO APPLY AND RECEIVE A DECISION?
It takes about five minutes to apply and you will have an answer within one business day.
WHAT DOCUMENTATION IS REQUIRED TO CLOSE A HOME EQUITY LOAN OR LINE?
Required documentation will include but is not limited to: an insurance binder, insurance declaration page, income verification, mortgage statement, and valid license or identification.