Frequently asked questions for Oklahoma borrowers.

A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by your home's equity. It works similarly to a credit card — you can borrow up to a set limit, repay it, and borrow again. Unlike a lump-sum loan, you only draw what you need and pay interest only on the amount borrowed. HELOCs typically have two phases: a draw period (usually 5–10 years) and a repayment period (usually 10–20 years).

A HELOC works in two stages. During the draw period (typically 5–10 years), you can borrow from your credit line as needed and make interest-only payments. During the repayment period (typically 10–20 years), you can no longer borrow and must repay both principal and interest monthly. The interest rate is usually variable and tied to the Prime Rate, so your payments can change over time.

To qualify for a HELOC, lenders typically require: (1) At least 15–20% equity in your home, (2) A credit score of 620 or higher (most lenders prefer 680+), (3) A debt-to-income (DTI) ratio of 43% or less, (4) Steady, verifiable income, and (5) Good standing on your existing mortgage. Requirements vary by lender, so it's worth shopping around.

Most lenders require a minimum credit score of 620 for a HELOC, but the best rates are typically reserved for borrowers with scores of 700 or higher. Some lenders, like Bank of America, require at least 660. A higher credit score improves your chances of approval and lowers your interest rate significantly.

Most lenders require you to have at least 15–20% equity in your home before applying for a HELOC. Lenders also typically require you to maintain at least 20% equity after borrowing (i.e., your combined loan-to-value ratio must stay at or below 80–85%). To calculate your equity, subtract your outstanding mortgage balance from your home's current market value.

The draw period is the initial phase of a HELOC, typically lasting 5 to 10 years. During this time, you can borrow up to your credit limit as needed, repay, and borrow again. Payments during the draw period are usually interest-only on the amount withdrawn. Once the draw period ends, you can no longer access funds and must begin full repayment.

A VA loan is a mortgage loan backed by the U.S. Department of Veterans Affairs (VA). It is provided by private lenders such as banks and mortgage companies, and the VA guarantees a portion of the loan. This guarantee allows lenders to offer veterans and eligible service members more favorable terms, including no down payment, no private mortgage insurance (PMI), and competitive interest rates.

VA loan eligibility is available to active-duty service members, veterans, National Guard and Reserve members, and certain surviving spouses. Specifically, you may qualify if you served 90 consecutive days of active duty during wartime, 181 days during peacetime, at least 6 years in the National Guard or Reserves, or 90 days of federal active duty under Title 10 orders. Surviving spouses of veterans who died in service or from a service-connected disability may also be eligible.

No. One of the most significant benefits of a VA loan is that eligible borrowers can purchase a home with zero down payment. This applies to the full loan amount with no loan limit if you have full VA entitlement. This is a major advantage over conventional loans (which typically require 5–20% down) and FHA loans (which require at least 3.5%).

The VA funding fee is a one-time upfront cost required by the VA to help sustain the loan program. For a first-time use with zero down payment, the fee is approximately 2.15% of the loan amount. For subsequent use with zero down, it rises to 3.30%. The fee decreases if you make a down payment of 5% or more. You can pay it upfront at closing or roll it into the loan. Veterans with a service-connected disability rating are exempt from this fee entirely.

Veterans receiving VA disability compensation at any rating percentage are permanently exempt from the VA funding fee on all VA loans, including purchases, IRRRL refinances, and cash-out refinances. Active-duty service members who have received the Purple Heart are also exempt. Surviving spouses of veterans who died in service or from a service-connected disability are exempt as well. If your disability claim is pending at closing, you may receive a funding fee refund once your claim is approved.

The VA itself does not set a minimum credit score requirement. However, individual lenders impose their own standards, commonly known as overlays. Most VA-approved lenders require a minimum FICO score of 580 to 620. Some specialized VA lenders may work with scores below 580 if you have strong compensating factors such as high residual income, long-term stable employment, or substantial liquid assets. Unlike conventional loans, VA loans do not have loan-level price adjustments (LLPAs), so a lower credit score borrower pays the same rate as a higher score borrower from the same lender.

No. VA loans do not require private mortgage insurance (PMI), even when borrowing with zero down payment. This is one of the most valuable financial benefits of the VA loan program. On a conventional loan with less than 20% down, PMI typically costs $100–$300 per month, so eliminating it can save a veteran tens of thousands of dollars over the life of the loan.

A Certificate of Eligibility (COE) is an official document issued by the VA that proves to lenders that you meet the service requirements for a VA loan. You can obtain your COE in three ways: online at VA.gov using the eBenefits portal, through your lender (most VA-approved lenders can pull it on your behalf electronically in minutes), or by mailing VA Form 26-1880 to the VA. You do not need your COE in hand to start the loan process—most lenders will retrieve it for you early in the application.