Spring EQ HELOC review: Large loan amounts but slow funding

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Spring EQ HELOCs at a glance

  • Fixed or variable rate: Fixed
  • How to withdraw funds: Wired to your bank
  • Origination fee: Unclear
  • Loan-to-value ratio: Up to 95%
  • Time to fund: 21 days, on average

Spring EQ is an online lender that offers digital applications and a dedicated support team. The company’s home equity line of credit offers access to a large percentage of your home equity.

Pros

  • Ability to access up to 95% of your home’s equity
  • Very high loan maximum
  • Interest-only payments available for up to 10 years

Cons

  • It takes an average of 21 days to receive your funds
  • Fees, rates and terms are unclear
  • Need a FICO credit score of at least 700 to access 95% of home equity

5 things to know about a Spring EQ HELOC

Here’s a closer look at some of the key features of the Spring EQ HELOC.

1. Flexible loan terms

The Spring EQ HELOC allows you to choose loan terms of five to 30 years and make interest-only payments for the first 10 years. This provides additional flexibility for how you repay your funds. Combined with the potential to access up to 95% of your home equity, this can give you the ability to make major home repairs without having to take out a home improvement loan.

2. Fixed-rate options

Spring EQ has fixed interest rate options, a nice perk compared to traditional HELOCs, which often have a variable rate that changes over time. A fixed rate offers more predictability for payment planning.

3. Streamlined online application process

Spring EQ says it offers a fast digital application process, along with a dedicated team of support experts who can help streamline the process and answer questions. Once you’ve submitted the required information, you may know immediately whether you’ve qualified.

4. Free home equity analysis

You can get a free estimate quickly by answering a few questions online. However, while this can provide you valuable information, receiving an analysis does not mean you’re preapproved for a HELOC.

5. No online payment option

Currently, Spring EQ’s payment options include payments by check and over the phone, ACH withdrawals from your bank account or bill pay through your bank’s system. The company does not offer online payments, which may be inconvenient for many borrowers. But Spring EQ claims that online payments will be available soon.

Who is a Spring EQ HELOC good for?

A Spring EQ HELOC is good for homeowners who need a large line of credit and don’t mind waiting up to three weeks to receive their funds. It can also benefit homeowners with good credit who want to access a large percentage of their home equity without having to do a full cash-out refinance.

The potential for fixed rates also makes this an attractive choice for anyone who prefers a more predictable payment.

How to apply for a Spring EQ HELOC

Spring EQ uses an online application system. Here’s what you should know.

  • You must have a minimum FICO score of 680 and a debt-to-income (DTI) ratio of no more than 45% to be eligible, and a 700 FICO to qualify for access of up to 95% of your equity.
  • When you apply, you should expect to provide a current mortgage statement, proof of income, a copy of your current homeowners insurance policy and a photo ID.

Not sure if Spring EQ is right for you? Consider these alternatives.

  • Aven Home Equity Credit Card: Aven combines a HELOC with a credit card that provides cash back.
  • U.S. Bank: This well-known lender offers many ways to access your HELOC funds.

About the author: Beth Deyo is a personal finance freelance writer with a bachelor's degree in Finance from the University of South Florida. She is also a Certified Financial Planner™ with 14 years of wealth management experience. She … Read more.