If you find yourself in over your head with debt and own a home, you could consolidate the money owed with a home equity loan with Achieve Loans. Achieve takes a different approach to lending. Homeowners can cash in on equity and simplify debt by applying for a line of credit between $15,000 to $150,000.
If approved, you can borrow money you need, whether to pay off high-interest credit card debt or simply cover bills. Whichever the case, you only accrue interest on the money you’ve withdrawn. The 10 or 15- year term loans have a draw period for the first five years.
Although Achieve Loans charges fees for your loan, they also offer the flexibility to withdraw funds as needed for the first five years. Plus, you could receive funding quickly in as little as 15 days if approved.
Unlike a typical home equity loan, Achieve Loans offers a fixed-rate home equity line of credit (HELOC). With this type of loan, you can use the equity in your home to consolidate debt. This helps with financial planning by lowering your monthly debt payments and simplifying repayment.
You can apply for a loan up to $150,000. Achieve Loans then determines your eligibility and may offer a line of credit amount. You can borrow money, pay it back, then borrow again during the first five years of your loan term. Plus, your home equity loan will not affect your first mortgage rate or term.
Credit required: 640 or higher for debt consolidation
Down payments: None, but charges a 2.5% origination fee and $725 underwriting fee
Loan terms: 10 or 15 years
Who is eligible: Homeowners with a combined loan-to-value ratio of 80% or below and a debt ratio of 43% or below
Similar to other lenders, Achieve Loans considers a number of financial factors when determining your eligibility. They’ll look at your debt-to-income ratio and combined loan to value ratio when deciding on your credit limit. In order to qualify, Achieve requires a combined loan-to-value ratio of 80% or below and a debt-to-income ratio of 43% or lower. This includes the HELOC sum and any outstanding mortgage.
Achieve Loans does consider your credit score and financial history. For debt consolidation, Achieve requires a minimum credit score of 640. If you want to tap equity for other purposes, you’ll need to have a credit score of 670 or higher.
Before applying, you can get a good idea of your eligibility and financial standing using the online tools available on the Achieve website. For example, the free debt-to-income calculator instantly shows where you stand comparing your monthly gross income to your monthly debt expenses.
You can handle the entire application online or by phone at 1-833-418-3097. If you receive approval, you can expect to receive your funding in as quickly as 15 days.
Although you can apply for free, the HELOC through Achieve Loans has some closing costs. HELOC loans generally come with an origination fee and Achieve Loans charges 2.5% of the line amount along with an underwriting fee of $725. There are also third-party settlement costs that range from $750 to $2,500 depending on the loan amount and state.
An Achieve Loans’ home equity line of credit gives borrowers the flexibility of taking out the cash they need, as they need it. If approved, you could receive a limit of up to $150,000. During the first five years, you’ll have a draw period in which you can borrow as you need to and pay the money back each month. Interest accrues on the money borrowed. Once you pass the five year draw period, you are no longer able to draw.
Achieve has a ton of online resources to help you better understand your financial standing and how to achieve your future financial goals. From blog articles to a debt-to-income calculator, anyone can educate themselves before applying for a loan. Their money management app and debt payoff calculator are excellent resources to manage and pay off debt.
If you want to reach a Licensed Mortgage Advisor directly, you can do so by phone at 1-833-418-3098 or by submitting an online inquiry. A Mortgage Advisor will get back with you to answer any questions or help guide you toward building a better financial future.
So what do customers have to say about their experience with Achieve Loans? The lender received an impressive 4.9 out of 5 star rating from customers out of thousands of reviews. Borrowers appreciated the easy application process and felt informed about their options every step of the way.