HELOC Comparison: Three Programs, Side by Side

You need money fast and your file is clean

Lightning Equity Hybrid HELOC. The whole thing runs through an automated system — automated valuation instead of an appraisal, a soft credit pull to start, and income verified by linking your online accounts. There is no manual underwriting and no exceptions, which is exactly why it moves. Terms of 10, 15, 20 or 30 years.

You want a fixed rate, or you want the HELOC in first position

Flex Equity HELOC. This is the one with a true fixed-rate option, 15, 20 or 30 year terms, and first-lien availability. It is manually underwritten by a specialty team with full documentation, so it takes longer — and it approves files an automated system would decline.

You are buying a home and want to avoid mortgage insurance, or you need the highest CLTV

Piggyback & Standalone HELOC. It is the only one of the three that can close simultaneously with a purchase or a refinance. It reaches 89.99% CLTV on a primary residence and follows Fannie Mae and Freddie Mac guidelines with limited overlays.

You are self-employed and write a lot off

Start with Lightning Equity Hybrid HELOC only if your income can be verified through automated account linking — it will not accept tax returns or checking statements. Otherwise you want Flex Equity HELOC, which takes full tax returns and is underwritten by a human.

Owner-occupied CLTV grid

Loan amounts above $400,000 can reach 85% CLTV with a 780 minimum score, owner-occupied, single-family, five acres or less. CLTV above 85% is subject to valuation limits — if the automated valuation model returns a forecast standard deviation above 13, above 85% is ineligible.

Second home and investment

If the property is held in an LLC, the applicant must be a member holding at least 25% of the LLC, only one applicant is allowed, the minimum score is 700, and owner-occupied is not permitted.

What will stop this loan

• Mortgage lates — the requirement is 0x30 in the last 6 months.
• A bankruptcy or foreclosure inside 60 months.
• More than two revolving, retail, or personal-finance credit inquiries in the last three months, each category counted separately.
• A non-medical collection with a balance over $500.
• Any worst-ever trade status in the last 12 months carries a 60-month seasoning requirement.
• Income that cannot be verified through an automated third-party system. Checking statements and tax documents are not accepted.
• Property types: manufactured housing, co-ops, log homes, houseboats, mixed-use, timeshares, anything over 20 acres, a reverse mortgage on title, land trusts, ground leases, or a home purchased in the last 90 days.
• A Florida condominium above 70% CLTV.

Pros

• Fastest path we have. Automated valuation, soft pull to start, automated income verification, and eNotary where counties support eRecording.
• No condominium questionnaire and no project review.
• Fixed-rate option on the initial draw, and each later draw locks its own fixed rate.
• Terms out to 30 years with a 5-year draw period.
• Discount of up to 0.25% for opting into autopay.
• No prepayment penalty and no early termination fee.
• Second homes, investment properties, and 2–4 units are all eligible.

Cons — the honest list

• You must draw 100% of the line at closing. If you want a line sitting unused as a safety net, this is the wrong product.
• Full principal and interest from month one. There is no interest-only period.
• The origination fee runs 1.50% to 4.99% and is selected in the application. It reduces the amount you receive.
• No manual underwriting and no exceptions. The automated decision is the decision.
• Income that only shows up on a tax return cannot be used.
• Ninety-day ownership seasoning — you cannot use it right after buying.
• Not available in New York. Texas is capped at 80% CLTV, owner-occupied only, $35,000 minimum. New Mexico must be first lien, owner-occupied, 79.99% maximum.
• A subordination fee of $300 applies in AZ, CA, CO, FL, GA, MI, NJ, OH and WA if you later refinance the first mortgage.

CLTV grid

*50% DTI at 700 FICO requires $3,500 of monthly residual income — total monthly income minus all mortgage and non-mortgage obligations. Without it the cap is 45%. Second liens are capped at $500,000 regardless of the row. Any line at or above $400,000 requires a 740 score.

Terms you can actually pick

The variable products use WSJ Prime published on the first of the month, with a 4.00% floor and an 18.00% lifetime cap. The qualifying payment is calculated as a fully amortized payment on the maximum line amount, not on what you actually draw.

What will stop this loan

• Foreclosure inside 7 years. A deed-in-lieu, short sale, short payoff, or charged-off mortgage inside 4 years. Chapter 7 or 11 inside 4 years from discharge or dismissal. Chapter 13 inside 2 years from discharge or 4 from dismissal.
• More than one credit event in the past 7 years.
• Mortgage lates: primary is 1x30x24 with nothing in the last 6 months. Second home and investment are 0x30x24.
• The property listed for sale at any point in the last 120 days from application.
• A first lien with a balloon due within 5 years, a reverse mortgage, an active forbearance or deferment, a partial claim, a private mortgage opened in the last 12 months, a Texas 50(a)(6) first, or a first-lien HELOC still in its draw period.
• Property types: manufactured or mobile homes, condotels, new-construction condo projects, working farms, barndominiums, boarding homes, mixed-use, leasehold, tribal land, more than one ADU, 2–4 unit investment properties, second homes over 1 unit, unimproved land, or solar as the only power source.
• Non-occupant co-borrowers, co-signers and guarantors are not allowed on this program at all.
• Purchase money and simultaneous piggyback closings are not eligible. This is a refinance-only product.

Pros

• A real fixed rate for 15, 20 or 30 years, with a payment that does not move.
• 90% CLTV down to a 680 score on a primary residence — the most generous high-CLTV grid of the three at that credit level.
• First-lien HELOC available in every state except Hawaii, New York and Pennsylvania.
• Interest-only for as long as 10 years on the variable products.
• No cash reserves or assets required.
• No ownership seasoning on a primary residence or second home.
• Established condo projects need no questionnaire or project review.
• Manually underwritten — a human reads the file, so the story behind a number can matter.
• Up to 20 acres, and up to 10 financed properties.
• No prepayment penalty.

Cons — the honest list

• Refinance only. It cannot be used to buy, and it cannot close simultaneously with a purchase.
• Full documentation. Tax returns, transcripts, pay stubs, W-2s and verification of employment. Self-employed under 5 years means two years of personal and business returns.
• Manual underwriting takes longer than an automated decision.
• A $99 annual maintenance fee.
• The initial draw must be the greater of the program minimum or 75% of the total line.
• Additional draws are prohibited for the first 90 days after closing.
• Not available in Hawaii or New York.
• Texas is 1 unit, owner-occupied only, 80% maximum, and 10 acres.
• Power of attorney is not allowed.

CLTV and line grid

Maximum combined loan amount on a piggyback is $4,000,000. First-lien versions are not offered in Vermont or Wyoming, and New Mexico caps a first-lien primary at 79.99%.

How it is structured

• Adjustable for the entire 30-year term, indexed to Prime plus a set margin.
• Choose a 5-year draw with interest-only payments and a 25-year amortizing repayment, or a 10-year draw with interest-only payments and a 20-year amortizing repayment.
• Qualified on the fully drawn line at the start rate plus 2.00%, amortized over 30 years — so you are underwritten as if you maxed the line out on day one.
• Minimum initial draw is $25,000 in most states, $50,000 in Arizona, California, Florida, Oregon and Washington, and $50,000 in every state on a standalone.
• Guidelines generally follow Fannie Mae and Freddie Mac, with limited overlays.
• No prepayment penalty and no early termination fee.

Pros

• The only program of the three that can close simultaneously with a purchase. That is what makes an 80/10/10 possible — and what keeps mortgage insurance off the first mortgage.
• Highest CLTV of the three at 89.99% on a primary residence, on both the piggyback and the standalone second lien.
• Largest line of the three — up to $1,000,000 at 75% CLTV with a 720 score.
• Interest-only for 5 or 10 years, which keeps the payment low while the line is outstanding.
• First-time homebuyers are acceptable with no mortgage housing history required.
• Agency guidelines with limited overlays, so a file that fits Fannie or Freddie usually fits here.
• Only one open, active tradeline is required with a DU or LP approval.
• Up to 10 financed properties, and no acreage limit if it is common to the market.

Cons — the honest list

• There is no fixed-rate option. It is an ARM for all 30 years.
• You are qualified at the start rate plus 2.00% on the full line. That is a real constraint on borderline debt-to-income files.
• Tighter DTI than the other two — 45% on a primary, 43% on a second home or investment property.
• Higher minimum score than the other two: 680 on a primary, 700 to 720 on a second home or investment.
• The lender operates in a defined list of states, not nationwide. Confirm eligibility before you build a plan around it.
• Appraisal waivers do not carry over — if the first mortgage gets a waiver, this lender still orders its own valuation.
• The loan closes in the partner lender’s name, not ours, and it is serviced by them.
• No DACA borrowers. Visa holders need a current visa and I-797; an EAD card alone is not enough.

1. Are you buying, or do you already own it?

If you are buying, there is one answer. Only the Piggyback & Standalone program can close simultaneously with a purchase. Lightning Equity is refinance and cash-out only. Flex Equity explicitly excludes purchase money and simultaneous closings. That single fact eliminates two of the three products on any purchase file.

2. Do you want the line drawn, or available?

Lightning Equity requires you to take 100% of the line at closing and pay principal and interest on all of it from month one. It is a lump sum wearing a line-of-credit coat. If what you want is a line sitting there unused — a cushion, a project fund you will spend over two years — you want Flex Equity or the Piggyback & Standalone program, where you draw a minimum and leave the rest available.

3. Can a computer see your income?

Lightning Equity verifies income by linking your online accounts through a third-party system, with pay stubs and award letters as an upload option. It will not accept checking statements or tax documents. If your income lives on a Schedule C, a K-1, or in deposits that no payroll system reports, that program cannot use it. Flex Equity takes full tax returns and is read by a human underwriter. That is the whole difference for a lot of self-employed borrowers.

4. How high do you need to go?

At 90% CLTV, Flex Equity goes down to a 680 score on a primary residence — the most forgiving of the three at that height. The Piggyback & Standalone program reaches 89.99% but wants 680 and holds a tighter 45% DTI. Lightning Equity reaches 90% only on smaller lines with a 720 to 740 score. Above 85% on Lightning, the automated valuation itself can disqualify you.

5. Fixed, or adjustable?

Only Flex Equity offers a true fixed rate for the life of the loan. Lightning Equity offers a fixed rate on each draw — the initial draw locks, and every later draw locks separately at whatever the index is that day, which means a line with several draws can carry several different fixed rates at once. The Piggyback & Standalone program is adjustable for the full 30 years.

Do not use Lightning Equity if…

• You want an unused line sitting available — you have to draw all of it.
• Your income only shows on tax returns.
• You want an interest-only payment.
• You bought the house in the last 90 days.
• You need a human to look at the file. There is no manual underwriting and no exceptions.
• The home is manufactured, a log home, over 20 acres, or a Florida condo above 70% CLTV.
• You are in New York.

Do not use Flex Equity if…

• You are buying. It cannot be used for a purchase or a simultaneous close.
• You need to move in days rather than weeks — it is manually underwritten with full documentation.
• The property was listed for sale in the last 120 days.
• You need a non-occupant co-borrower or a co-signer. Neither is allowed.
• It is a 2–4 unit investment property, a second home over 1 unit, or a barndominium.
• You are in Hawaii or New York.

Do not use the Piggyback & Standalone program if…

• You want a fixed rate. There is not one.
• Your debt-to-income is tight — you are qualified on the full line at the start rate plus 2.00%.
• Your score is below 680, or below 700 to 720 on a second home or investment property.
• You are in a state the partner lender does not serve.
• Your Texas property is your homestead.

Which HELOC closes the fastest?

The Lightning Equity Hybrid HELOC. It uses an automated valuation model instead of an appraisal, starts with a soft credit pull, verifies income by linking your online accounts, and runs through an automated decision with no manual underwriting. There is no condominium questionnaire and eNotary is used in counties that support eRecording. The tradeoff is rigidity: no exceptions, and income that cannot be verified electronically cannot be used.

Which HELOC can I use to buy a house?

Only the Piggyback & Standalone HELOC. It is the only one of the three that can close simultaneously with a purchase, which is what makes an 80/10/10 structure possible and keeps mortgage insurance off the first mortgage. Lightning Equity is refinance and cash-out only. Flex Equity explicitly excludes purchase money and simultaneous closings.

Which HELOC has a fixed rate?

Flex Equity is the only one with a true fixed rate for the life of the loan, available in 15, 20 and 30 year terms with a 3-year draw period. Lightning Equity offers a fixed rate per draw — the initial draw locks a rate, and each later draw locks its own rate at the index in effect that day, so one line can carry several fixed rates at once. The Piggyback & Standalone program is adjustable for the full 30-year term.

What is the highest CLTV I can get on a HELOC?

90% on Flex Equity for an owner-occupied 1–4 unit primary residence, down to a 680 credit score. The Piggyback & Standalone program reaches 89.99% on a primary residence at 680. Lightning Equity reaches 90% only on smaller lines with a 720 to 740 score, and above 85% the automated valuation itself can disqualify the file if the forecast standard deviation is above 13.

Do I have to draw the whole line at closing?

On the Lightning Equity Hybrid HELOC, yes — 100% of the line is drawn at closing and you make a full principal and interest payment on all of it from month one. You can pay it down and redraw during the draw period. Flex Equity requires an initial draw of the greater of the program minimum or 75% of the total line. The Piggyback & Standalone program requires a minimum initial draw of $25,000 in most states, $50,000 in Arizona, California, Florida, Oregon and Washington, and $50,000 in all states on a standalone.

Which HELOC works if I am self-employed?

Flex Equity, in most cases. It takes full documentation — personal and business tax returns, transcripts, pay stubs, W-2s, verification of employment — and it is read by a human underwriter. Self-employed less than 5 years requires the most recent 2 years of personal and business returns; 5 years or more requires the most recent year. Lightning Equity verifies income only through automated third-party systems and does not accept tax documents or checking statements at all.

Can I get a HELOC on an investment property?

Yes, on all three, with different limits. Lightning Equity allows investment properties and 2–4 units to 80% CLTV in first lien and 70% in second. Flex Equity allows 1-unit investment properties to 80% at a 740 score, but excludes 2–4 unit investment properties entirely. The Piggyback & Standalone program allows non-owner-occupied to 70% CLTV with a 720 minimum score and a 43% DTI cap.

Which HELOC has the lowest credit score requirement?

Lightning Equity and Flex Equity both go down to 640. On Lightning that means a 75% CLTV and a $125,000 maximum line. On Flex Equity, 640 means a 70% CLTV cap. The Piggyback & Standalone program starts at 680 on a primary residence and 700 to 720 on a second home or investment property.

Is there a prepayment penalty on any of these?

No. None of the three has a prepayment penalty or an early termination fee. On Lightning Equity there is an early payoff provision if more than 90% of the line is repaid within 16 weeks, but it costs the borrower nothing — it affects the loan officer’s compensation, not yours.

Can a HELOC be in first lien position?

Yes, on all three, with state exceptions. Flex Equity offers first-lien HELOCs everywhere except Hawaii, New York and Pennsylvania, up to $750,000. Lightning Equity allows first lien position up to $400,000, and requires it in New Mexico. The Piggyback & Standalone program offers a first-lien standalone up to $750,000 at 80% LTV, or $1,000,000 at 75% LTV with a 720 score, but not in Vermont or Wyoming.

What is the biggest HELOC I can get?

$1,000,000, on the Piggyback & Standalone program at 75% CLTV with a 720 credit score. Flex Equity caps at $750,000 in first lien and $500,000 in second. Lightning Equity caps at $400,000, with select tiers to $750,000. Total financing limits also apply: Flex Equity caps combined first and second lien financing at $3,000,000 on a primary residence and $2,000,000 on a second home or investment property.

How does a HELOC affect the low rate on my first mortgage?

It does not. All three of these are equity products that sit behind your existing first mortgage when used in second lien position. The balance, rate, term and payment on your first mortgage stay exactly as they are. That is the structural reason a second lien exists as an alternative to a cash-out refinance.

What happens to my payment when the draw period ends?

It depends on the product, and this is the single most important thing to understand. Lightning Equity has no payment change — you pay full principal and interest the entire time. Flex Equity fixed products amortize from the start, so no change there either. Flex Equity variable products and the Piggyback & Standalone program are interest-only during the draw, then convert to a fully amortizing payment over the remaining term. That conversion is a real increase, and it is the thing to plan for.

Are HELOCs available on a manufactured home?

Generally no. Lightning Equity and Flex Equity both list manufactured and mobile housing as ineligible property types. The one exception is the Piggyback & Standalone program in Texas, which allows a double-wide manufactured home built in 1976 or later — but in Texas that program is non-homestead only, so it would have to be a second home or investment property.

Why can’t I just pick the product I want?

You can tell us what you want — fixed rate, fastest close, biggest line — and we will get you as close to it as your file allows. But which program you qualify for is set by CLTV, occupancy, credit score, loan amount, how your income documents, and what state the property is in. Those interact. A borrower who wants the fastest product but has income that only shows on a tax return is not eligible for the fastest product, no matter how much they want it.

Can I have a HELOC on a property held in an LLC or a trust?

On Lightning Equity, yes for both, with conditions. For a trust, the full certificate of trust is reviewed, and every state except New York is trust-eligible. For an LLC, the applicant must be a member holding at least 25% of the LLC, only one applicant is allowed, the minimum credit score is 700, and owner-occupied is not permitted. Flex Equity does not allow non-individual legal entities as borrowers.

Find Out Which One You Fit

Tell us the property, roughly what it is worth, what you owe, and what you are trying to do with the money. We will tell you which of the three programs you qualify for and what each one would actually give you. The first step takes about 2 minutes — no SSN required, and no credit pull.

See My HELOC Options →

Related Resources

• Lightning Equity Hybrid HELOC in detail
• HELOC questions answered
• HELOC vs cash-out refinance
• Closed-end second mortgages
• Texas HELOC rules
• What is a hybrid HELOC