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Best for accessing more of your equity

Building equity in a home takes time, and the amount of equity you’ve built can impact the amount you can borrow. If you need substantial funds for home improvements, education expenses or debt consolidation, Spring EQ home equity loans are an attractive option. Spring EQ reviews praise its ability to provide homeowners with access to a larger percentage of their home’s equity compared to many other lenders.

Unlike many other mortgage lenders who cap the amount of equity you can access at 85%, Spring EQ lets you borrow up to 95% of your home’s equity. We selected Spring EQ as one of the best home equity loan providers in large part because of its generous equity allowance. Its interest rates are also competitive, and its flexible terms make Spring EQ a good choice for many homeowners.

Spring EQ HELOC pros and cons

Before applying, you should consider the pros and cons of a home equity line of credit (HELOC).

Pros explained

Access to up to 95% of your equity

Spring EQ allows jmyou to access up to 95% of your home’s equity. In contrast, most lenders limit you to 85%. This 10% difference might seem small, but it can translate to a significant amount of funds when dealing with home values. With Spring EQ, you can tap into a higher percentage of your home’s worth, empowering you to accomplish more with your loan.

Flexible terms

Spring EQ provides a range of flexible terms. You can repay your loan in increments of five to 30 years, or choose up to 10 years of interest-only payments. If you’re planning to do major home improvements, you can take advantage of this flexibility to avoid taking out a home improvement loan.

Low minimum credit score

Spring EQ offers home equity loans and home equity lines of credit with various credit score requirements. You’ll only need a minimum credit score of 640 to qualify for a home equity loan. If you want to take out a HELOC, you’ll need a credit score of 680. However, to borrow up to 95% of your home’s equity with a Spring EQ home equity loan, you will need a credit score of 700 or higher.

Cons explained

Not available in all states

Spring EQ does not offer home equity products to residents in Alaska, Hawaii, Idaho, Massachusetts, Missouri, Nevada, New York, North Dakota, South Dakota, West Virginia, Wyoming or Utah.

Appraisal and title insurance required for some loans

Spring EQ’s appraisal requirements depend on several factors, including how long you’ve owned your home and the date of your last appraisal report. You may be able to use a previous appraisal if it was done within the last 12 months. However, if your loan is over $175,000, you’ll need a full interior appraisal. If your loan is over $250,000, you’ll need title insurance as well.

No online payment option

Spring EQ doesn’t give you the option to make online payments, but that may be an option soon. For now, you can make a phone payment, set up recurring payments or mail in a payment.

Spring EQ HELOC offerings

Home equity loans

Spring EQ offers fixed-interest home equity loans with repayment terms from five to 30 years. You can access up to 95% of your home’s value with a loan amount of up to $500,000 without the need to refinance. With same-day approval and an average fund availability of 21 days, you’ll have quick access to your money.

Home equity lines of credit

Spring EQ also offers a home equity line of credit (HELOC) with a variable interest rate and a term of 30 years. With a HELOC, you can make interest-only payments for the first 10 years. One downside to Spring EQ’s HELOC is that you must take an initial draw of at least $50,000, which is higher than many other lenders. Your debt-to-income ratio must be 45% or lower, and the minimum credit score is 680 to qualify for a HELOC.

Home purchase loans

Although Spring EQ is primarily known for its HELOC and home equity loans, it also offers home purchase loans. The interest rates and loan terms for a home purchase loan will depend on your profile as a borrower. If you’re self-employed, you’ll need to provide more extensive documentation of your income. You’ll have to meet the underwriting guidelines for verifying your credit profile and debt-to-income ratio.

Home refinance loans

Spring EQ also offers traditional refinance loans if you prefer to refinance instead of taking out a home equity loan or HELOC. The guidelines and terms for refinancing are similar to those for a home purchase loan.

Spring EQ HELOC pricing

Spring EQ doesn’t list its minimum interest rate, nor does it publicly disclose its fees. However, in addition to applicable administration fees, you’ll have to pay for an appraisal and title insurance if needed.

Spring EQ HELOC financial stability

Spring EQ is a Pennsylvania-based home lending company that specializes in home equity loans and home equity lines of credit (HELOCs). It was established in 2016 and is accredited by the BBB with a rating of A+. It’s in good standing with the Department of Banking and Securities in Pennsylvania with a current license.

Spring EQ HELOC accessibility

Availability

Spring EQ’s loan products are not available in the following states:

• Alaska
• Hawaii
• Idaho
• Massachusetts
• Missouri
• Nevada
• New York
• North Dakota
• South Dakota
• West Virginia
• Wyoming
• Utah

In addition to residing in one of states that Spring EQ offers services in, you’ll need to meet certain underwriting guidelines, including:

• Minimum credit score of 640 for home equity loans

• Minimum credit score of 680 for HELOC

• Minimum credit score of 700 for 95% equity loans

• Documentation of income and other information in your application

• Debt-to-income ratio of 45% or less (total monthly debt payments divided by total monthly gross income)

Contact information

Spring EQ can be contacted by:

• Phone: Call Spring EQ at 1-855-463-7407​ or 1-888-978-9978.

• Mailing address: Mail a check or send any documents to Spring EQ, ATTN: Servicing, 100 W. Matsonford Road, Building 5, Suite 100, Radnor, Pennsylvania 19087.

• Corporate address: Send corporate mail to 1 West Elm St., Suite 450, Conshohocken, Pennsylvania 19428.

User experience

Spring EQ offers preapproval based on your online application almost instantly, although your terms will depend on verification of the provided information. Submit an application on the website, or get in touch with a loan officer by calling 1-877-972-8873.

To apply for a loan, you’ll need to provide the following information:

• Date of birth

• Phone number

• How much you want to borrow

• Details of your financial history, including income, debts and past history of bankruptcies or defaults

• Details about co-borrowers

• Information about the property, including whether it’s your primary residence, how much you owe on it and if there are any liens on it

Once you’ve submitted this information, you’ll get prequalified for a loan amount. This is a preliminary step and isn’t binding until you submit the formal application and your information is verified. You can finish applying online or ask to be connected with a loan officer. After you submit a formal application, you’ll be asked to submit verifying documentation. You’ll generally have your funds available within 21 business days.

Spring EQ HELOC customer satisfaction

Spring EQ reviews reveal an average customer satisfaction rating of 4.3 with the Better Business Bureau (BBB), indicating that most customers are satisfied with its service. Of its 193 customer reviews, only 42 are complaints, and 26 complaints have been closed in the past 12 months. Spring EQ responds promptly to customer reviews and provides a contact person to assist with complaints.

One customer complained that the lending guidelines changed during their application process, making them ineligible for a loan. Another complained that they received more of a draw on their HELOC than requested. Yet another complained the rate and payment were higher than expected. Given that Spring EQ responds promptly to all complaints and that many of the complaints were ultimately closed, it has an A+ rating with the BBB.

Some of the negative Spring EQ reviews mention that representatives didn’t communicate well, gave them a loan amount that was less than expected or took too long to approve their loan. However, most of the reviews are positive, with praise for the professional loan officers and the easy, convenient process.

How we evaluated Spring EQ HELOC

To review Spring EQ, we considered the following criteria:

• Pros and cons: We assessed the overall pros and cons of Spring EQ, including the features it offers and how it compares to other home equity loan originators.

• Pricing: We evaluated how transparent Spring EQ is regarding interest rates, initiation and service fees, closing costs and additional costs such as appraisals.

• Offerings: We examined the types of loans offered, the flexibility in terms, the minimum and maximum loan amounts and the borrowable amount of home equity.

• Customer experience and satisfaction: We looked into complaints and reviews filed with the Better Business Bureau to evaluate how happy customers were with Spring EQ.

• Accessibility: We checked the eligibility requirements, the application process, the minimum required credit score, what states Spring EQ services and how easy it is to contact them.

Summary of Money’s Spring EQ HELOC review

Spring EQ is a great option to access more of your home’s equity than you can with traditional lenders. They make the preapproval and application process convenient and quick. However, coverage is currently limited, so you must own property in one of the states they service. Additionally, they could be more transparent about both interest rates and fees associated with home equity loans and lines of credit.

Source: money.com