HELOC With No Reserves Required
Several of our HELOC and home equity loan programs do not require reserves when the loan closes on its own. In at least one program, lines reach $1,000,000 with no minimum reserves.
Where reserves are not required
Reserves are savings you still have after the loan closes, and several of our equity programs do not ask for any.
- At least one HELOC we offer has no minimum reserves on lines up to $1,000,000.
- At least one HELOC with lines from $20,000 to $500,000 requires no reserves.
- At least one program waives reserves on standalone HELOCs and home equity loans up to $500,000.
- At least one home equity loan has no minimum reserves on amounts up to $1,000,000.
- At least one closed-end second does not require cash reserves on loans up to $500,000.
- Rental owners have business-purpose second lien options with no reserves required.
Keep your savings where they are
Lines up to $1,000,000
First or second lien options
Rentals and second homes count
Credit scores from 640
Home equity loans qualify too
When Reserves Are Not Required
Whether you need reserves depends on how the loan closes and how large the line is.
Reserves are the liquid or near liquid assets you still have after the loan closes. They are counted in months of the housing payment you could cover with those assets. Several of our HELOC and home equity loan programs do not require any.
The no-reserve rules apply to standalone loans, which close on their own rather than together with a new first mortgage. When a second lien closes with a home purchase, the first mortgage’s reserve rules apply instead. In at least one standalone home equity loan, assets are only verified if you bring cash to close, pay off debt, or use assets as income.
Some programs do set reserves by size. At least one second lien program asks for 3 months of reserves up to $500,000 and 6 months above that, up to $1,000,000. At least one first lien HELOC asks for 3 to 6 months on lines up to $2,000,000 and 12 months above $2,000,000. We look at the no-reserve programs first when your file fits them.
Why choose Saxton for a HELOC with no reserves
This page is for homeowners who want to use their equity without showing months of savings after closing.
We Compare Reserve Rules
Reserve rules differ by program. One HELOC may need none while another asks for months of savings. We check your file against the no-reserve programs first.
Large Lines Still Qualify
At least one HELOC with no minimum reserves offers lines up to $1,000,000. Lines above $500,000 in that program have a maximum DTI of 43%.
Small Lines Are Welcome
At least one no-reserve HELOC starts at a $20,000 line. Lines under $50,000 in that program are fully drawn at closing.
First Lien HELOCs Too
At least two programs allow a standalone HELOC in first or second lien position with no reserve requirement.
Investors Have Options
At least one business-purpose second lien on rental property requires no reserves. Another investor second lien also requires none, for borrowers with a history of owning and managing investment real estate.
We Tell You Up Front
If your second lien closes with a purchase, the first mortgage’s reserve rules apply. If your line size triggers reserves in a program, we say so before you apply.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers on reserves for HELOCs and home equity loans.
Yes. At least one HELOC we offer has no minimum reserves on lines up to $1,000,000. Other programs waive reserves on standalone lines up to $500,000.
It depends on the program. In at least one second lien program, reserves start at 3 months for loans up to $500,000 and rise to 6 months above $500,000. Other programs require none at any size they offer, up to $1,000,000.
You follow the first mortgage’s rules. In at least one program, a second lien that closes with a purchase follows the first lien’s reserve requirements.
In at least one program, yes. One second lien program lets cash-out proceeds satisfy its reserve requirement. At least one investor HELOC does not allow this.
It can. At least one program allows a first lien HELOC with no minimum reserves, up to $1,000,000. Another asks for 3 to 6 months on lines up to $2,000,000 and 12 months above that, and one sets reserves at 10% of the line amount, or 15% when DTI is above 40%.
Yes. At least one HELOC with no minimum reserves allows primary homes, second homes, and investment properties. Business-purpose second liens on rentals are also available with no reserves required.
Not always. At least one standalone home equity loan needs no asset verification unless assets are needed for cash to close, paying off debt, or as an income source.
Find out what you qualify for
Tell us about your home, the line size you want, and your savings, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.