HELOC Criteria

The amount of your Home Equity Line of Credit (HELOC) is based on the value of your home. A MVFCU HELOC has the following criteria:

  • Owner occupied single family or duplex residential properties or second homes are eligible for the Home Equity Line program.
  • Your home must be 100 percent complete in order to qualify for a Home Equity Line of Credit.
  • Home Equity Lines are available for as little as $10,000 or up to $500,000 of the qualifying equity in your primary residence. The maximum loan amount available for a first lien position is $500,000 not to exceed 80 percent of the value and up to $300,000 for a second lien position, not to exceed 80 percent of the value including the first lien.
  • This loan program has a variable interest rate which can be adjusted monthly or fixed rate conversions are also available.
  • Ask a representative for details. There is no annual fee and no minimum draw amount with an initial draw period of 7 years, an additional 7 year draw period can be requested with updated qualifying documents.

Please contact an MVFCU loan officer for more information.


Estimate the Amount you can Borrow

First – Determine the Value of your Home

For a rough estimate you may use the borough/municipality's assessed value for your home. An appraisal by a certified appraiser may be necessary.

Next – Determine the Type of HELOC for which you can Apply

If you own your home outright, apply for a first deed of trust HELOC. If you already have a mortgage on your home, apply for a second deed of trust HELOC.

Finally – Calculate the Available Equity you have in the Home

Complete the correct equation based on the HELOC type you qualify for:

First Deed of Trust HELOC:

Value of Home x 80% = Usable Equity

Second Deed of Trust HELOC:

(Value of Home x 80%) - Current Mortgage Balance = Usable Equity

Your result – Usable Equity – this is your estimate of the maximum line of credit you may apply for based upon the criteria above. MVFCU's calculation may differ from your estimate.

Fixed Interest Rate

Once a year and at any time during the year, the Home Equity Line of Credit (HELOC) Loan allows you to convert all or a portion of the outstanding balance to a fixed interest rate (the minimum conversion amount is $10,000, with a 15-year repayment term). There is a maximum of two (2) fixed rate conversions at any given time for the HELOC Loan. A first deed of trust fixed rate conversion will be the prevailing "Prime Rate" plus a margin of 0.75% at the time the conversion is requested. A second deed of trust fixed rate conversion will be at the prevailing "Prime Rate" plus a margin of 1.25% at the time the conversion is requested.

Fixed rate conversions have a minimum interest rate of 5.75% for a first deed of trust and 6.25% for a second deed of trust; with a maximum interest rate of 15%. Fixed rate conversions must be requested in writing at the time of conversion in person or by mail. HELOC fixed rate option forms will be provided to you upon closing of your HELOC and upon your request. Conversion to a fixed rate loan has a low $50.00.

  • All rates and terms are subject to change without notice.
  • Property must be located in the State of Alaska or Hawaii.
  • The primary borrower must be a MVFCU member or able to become a MVFCU member prior to closing of the loan.
  • The property must be either a primary residence or a second home.