Home Equity Lines of Credit/Commercial Lines of Credit
A home equity line of credit (also called a HELOC) is a line of credit where the equity and value of a borrower’s home or business is used as collateral on the line of credit. These Residential lines of credit are typically used for large expenses such as home improvements, but are not used to cover day-to-day expenses.
Businesses are also able to take advantage of lines of credit called commercial lines of credit. These loan programs vary from lender to lender, but they can prove extremely helpful for covering business expenses since the turn-around time for client payment of invoices varies.
When applying for a home equity loan or line of credit, it is sometimes necessary for the borrower to purchase a Lender’s Title Insurance Policy. This is typically true if the dollar amount for the line of credit exceeds a certain threshold as set by the state or by the lender. At First Guardian Title and Escrow, we are used to working with borrowers and their lenders to fulfill the requirements for a Title Insurance Policy. We are also happy to serve as a resource for borrowers who may not fully understand the correlation between Title Insurance and their request for a home equity line of credit. Contact us today for more information or to learn more about how we can help.