Why equity works for startups
Startup lenders want a track record you don't have yet. A business-purpose HELOC is underwritten on the property, your credit and your verified income, so a new venture can be funded from equity you've already built.
- Franchise fees, build-out and equipment
- Opening inventory and working capital
- Down payment on a business acquisition
- Launch marketing and deposits
Know the risk
The line is secured by your real estate and reports on your personal credit. Size it to what the business plan truly needs, and keep reserves for the months before revenue arrives.
HELOC to Start or Buy a Business: terms at a glance
| Line amount | $25,000 – $750,000 for qualified applicants ($35,000 minimum in Texas) |
|---|---|
| Lien position | 1st, 2nd or eligible 3rd |
| Occupancy | Primary residence, second/vacation home or investment property |
| Terms | 10, 15, 20 or 30 years, fully amortizing |
| Funding | Generally fully drawn at closing; repaid principal may be redrawn |
| Credit | Primary residence tiers from about 600 FICO in limited cases; second home or investment generally 680+ |
| Max CLTV | Up to about 85% (primary, 1st lien); about 70–80% for investment property |
| Prepayment | No standard prepayment penalty |
| Use of funds | Legitimate business purpose only |
The Business-Purpose HELOC is offered through a third-party lending partner. Win-Win Capital Funding, LLC is an independent referral partner and may be compensated for applications submitted through this site. Win-Win does not make credit decisions. All loans are subject to credit approval, verified income, debt-to-income requirements, collateral review, title, valuation, state availability and other underwriting requirements, and terms may change without notice. Business-purpose use is required. A hard credit inquiry may be required. Borrowing against real estate places the property at risk if payments are not made.