Home Equity

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Home Equity Financing.

The equity you have built in your home may help you fund what comes next. Michigan First offers home equity financing for renovations, repairs, debt consolidation and other significant expenses. Add a new room or deck, cover college costs, tackle long-overdue renovations, or plan that big family trip. We strive to make the process as simple and stress-free as possible, so you can submit the application quickly and move on with your day.

What Is Home Equity?

Home equity is the portion of your home’s value that you own.

It is generally calculated by subtracting the amount you owe on your mortgage and any other loans secured by the property from its current market value.

For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, you have approximately $100,000 in equity.

Home value − property-secured loan balances = available home equity

Having $100,000 in equity does not necessarily mean you can borrow the full amount. Your available financing will also depend on applicable combined loan-to-value limits, your income, existing financial obligations, credit qualifications and ability to repay.

What can Home Equity financing be used for?

Home equity financing can support a variety of planned and unexpected expenses, including:

Home renovations and remodeling
Necessary home repairs
Debt consolidation
Education expenses
Medical costs
Emergency expenses
Major purchases
Other significant financial needs

Because home equity financing is secured by your property, it is important to borrow thoughtfully and choose a payment that fits comfortably within your budget. If you cannot repay the amount borrowed as agreed, your home could be at risk.

Compare Your Home Equity Options.

Home equity loans and home equity lines of credit both allow you to borrow against your available equity. The primary difference is how you receive and use the funds. A home equity loan may be a better fit when you know how much you need and want the complete amount upfront. A HELOC may be more appropriate when expenses will occur over time or you want continued access to available funds.

Home Equity Loan

Home Equity Line of Credit

Receive the approved loan amount upfront
Installment loan
Fixed- or variable-rate options may be available
Structured monthly repayment
Useful for one defined expense
Interest applies to the full loan balance

Access funds as needed
Revolving line of credit
Typically has a variable interest rate
Draw period followed by repayment
Useful for ongoing or changing expenses
Interest applies only to the amount used

Home Equity Loans

A home equity loan provides one upfront loan amount that you repay through scheduled monthly payments over an established term.

It may be a practical option when you:

Know approximately how much you need
Have one significant planned expense
Want the complete amount upfront
Prefer a defined repayment schedule
Want the option of a fixed interest rate

Michigan First offers fixed- and variable-rate home equity loan options. Your available loan amount, rate, payment and repayment term will depend on your home’s value, existing property-secured balances and credit qualifications.

Apply for Home Equity Financing

Home Equity Lines of Credit

A home equity line of credit, or HELOC, gives you revolving access to funds during an established draw period.

Instead of receiving the full amount upfront, you can borrow as expenses arise, repay what you use and access the line again during the draw period, up to your available credit limit.

A HELOC may be a practical option when you:

Expect expenses to occur over time
Do not know the exact amount you will need
Want ongoing access to available funds
Prefer to pay interest only on the amount used
Are comfortable with a variable interest rate

Michigan First HELOCs feature a 10-year draw period followed by a repayment period of up to 10 years.

Explore Home Equity Lines of Credit

Let your home’s equity support what comes next

Whether you are improving your home, consolidating higher-interest debt or preparing for another significant expense, Michigan First can help you explore ways to use the equity you have built.

Compare your options, estimate your available equity or connect with an experienced underwriter when you are ready.

Frequently asked questions

View All FAQs

Do I have to be a Michigan First member to apply for a loan?

Yes. You must become a Michigan First member before applying for a consumer loan. Membership is open to anyone who lives, works, or worships in Michigan and begins by opening a Michigan First Savings Account with a minimum $10 deposit.

What credit score do I need to qualify for a Michigan First loan?

Michigan First does not use one minimum credit score for every loan. Approval and available rates depend on factors such as the type of loan, your credit history, income, existing debts, and ability to repay. Applying is the best way to learn which options and rates may be available to you.

What is the difference between a home equity loan and a home equity line of credit?

A home equity loan generally provides a one-time lump sum that is repaid through regular payments, usually at a fixed interest rate. A home equity line of credit, or HELOC, allows you to borrow from an approved credit limit as needed and pay interest only on the amount you use. HELOCs commonly have variable interest rates.