Truist stands out for its swift application and closing process, offering a reliable solution for homeowners in need of financial assistance. Providing diverse repayment options tailored to various financial situations, Truist is an excellent choice for those seeking flexibility, speed and versatile repayment structures in their HELOC journey. However, its services are limited to specific states and may not be suitable for technophobes or those planning an early closure.
- 9.47% to 18% (for variable rate) / 10.05% to 16% (for fixed rate)APR Range
- UndisclosedMinimum Credit Score
- $10,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- UndisclosedTime to Receive Funds
Features of Truist
A Truist HELOC opens up a realm of financial possibilities. You can direct these funds towards various avenues, be it home renovations or managing unexpected bills. It's prudent to be aware of the fees involved to ensure there are no surprises down the line. The draw and repayment periods are structured, providing a clear roadmap for managing your loan. Truist offers assistance to steer you back on track if bumps arise during repayment. Besides, their exemplary customer service is ready to guide you whenever queries spring up. Delving into these features puts you in a better place to gauge if Truist is the right fit for your HELOC needs.
What Can You Use Your Funds For?
Access to funds when you need them is convenient. However, how you can use them is sometimes dictated by your lender. Knowing any restrictions upfront helps you manage your finances accordingly. Fortunately, Truist provides financial adaptability. Here's how you can use your HELOC funds:
Home Improvements: Truist's HELOC is a reliable source of funds if you want to increase the value of your home or fix urgent issues.
Debt Consolidation: Simplify your finances by consolidating high-interest debts, making management easier and potentially saving on interest.
Education Costs: Cover tuition fees or other educational expenses, investing in a brighter future with the help of Truist.
Emergency Expenses: Access funds quickly for unexpected medical bills or other emergencies.
Major Purchases: Planning a big buy, like a car? Truist's HELOC can help make it happen.
With Truist, your HELOC is a pathway to meeting your financial goals, big or small. The freedom in fund usage ensures you have the support you need precisely when you need it, making Truist a solid choice.
Fees and Discounts With a Truist HELOC
Getting an idea of the fees associated with a home equity line of credit (HELOC) is essential since different lenders have varying structures, which can significantly impact the cost of your loan. With Truist, the transparency and select fee waivers contribute to a friendly borrowing environment. Here’s a breakdown of what to expect:
Closing Costs: Truist offers flexibility here. You can pay the closing costs upfront or have Truist advance most or all of them on your behalf. If you opt for the latter, keeping your account open for at least three years waives the reimbursement of these costs.
Annual Fee: An annual fee of $50 is applicable in Alabama, Arkansas, California, Florida, Georgia, Indiana, Kentucky, New Jersey and Ohio.
Fixed Option Setup Fee: A fixed rate can provide predictability in your repayment structure. Choosing this option on a portion of your balance comes with a modest $15 fee.
Unlike other HELOC lenders, Truist doesn’t entice customers with low introductory rates or relationship discounts. That could mean paying more in interest over the life of the loan, which is worth considering when comparing HELOC lenders.
Draw and Repayment Periods
A Truist HELOC has two main phases: the draw and repayment periods. Knowing their intricacies can help you maximize your HELOC, ensuring a smooth financial journey.
During the 10-year draw period, you can borrow up to your credit limit. It provides flexibility, allowing you to manage your funds in a way that suits your financial situation. You have two payment options to choose from:
Variable-Rate Repayment: Your minimum monthly payment is calculated as 1.5% of the total outstanding balance. It covers interest and a portion of the principal, gradually reducing your overall debt.
Interest-Only Repayment: Your minimum monthly payment only covers the interest accrued the preceding month, leaving the principal amount unchanged. It results in lower monthly payments during the draw period but doesn't reduce the borrowed amount.
As you transition into the 20-year repayment period, the payment structure shifts. If you chose the variable-rate option, you'd continue paying the principal and interest, gradually reducing your debt. If you opted for interest-only payments throughout the draw period, your payments during the repayment period will encompass both the principal and interest, leading to a rise in your monthly obligations.
Separately, there's the Fixed-Rate Repayment option. With a $15 setup fee, you can convert all or parts of your line to a fixed rate, determined by your credit profile, amount and chosen term (five, 10, 15, 20 or a 30-year term at closing with an initial draw). Up to five fixed-rate draws can be open simultaneously, each with a minimum draw of $5,000, providing a structured repayment plan amidst a fluid financial scenario.
Loan Amounts and Interest Rates
Truist's HELOC offers a wide loan amount range — from $15,000 to $500,000 — giving homeowners enough flexibility to cater to various needs, be it home improvements or other significant expenses.
The interest rate, expressed as the Annual Percentage Rate (APR), varies based on several factors like your credit score, the value of your loan compared to your home's value (loan-to-value), the amount you borrow and your property’s location. Each time you decide to draw from your HELOC, you can choose either a fixed or variable interest rate.
During the 10-year draw and 20-year repayment periods, the standard APRs for the variable rate option can range from Prime +1.55% (currently 10.05% APR) to Prime + 7.50% (now 16.00% APR), with a ceiling of 16% APR in North Carolina and 18% APR in several other states like California, Florida and Texas, among others.
However, if you opt for the fixed-rate option, the APR ranges between 9.47% and 16.00%. This range gives clear foresight on the interest obligations, aiding in better financial planning and decision-making.
Life sometimes throws curveballs that make keeping up with your HELOC payments challenging. Truist gets this and is ready to assist. Initially, the focus is on exploring ways to help you stay in your home with options like Reinstatement, Payment Deferral or Loan Modification. If remaining in your home is not viable, solutions like Short Sale or Deed-in-Lieu of Foreclosure are considered to help you avoid foreclosure.
If you find your HELOC in delinquent status, Truist will notify you, providing a Loss Mitigation Application with steps to document your hardship and gather necessary financial information. It's about painting a clear picture of your financial situation to find the best solution together.
If you need to start this conversation, contact Truist's Consumer Home Loan Specialists at 866-519-3479. They're available Monday to Friday, 8 a.m. to 6 p.m. ET. Having this support channel can be a game-changer, as it ensures you're not alone during challenging times.
A reliable communication channel with your HELOC lender streamlines your borrowing process. When your lender has a dependable customer service team, it becomes easier to address concerns, seek clarifications and make informed decisions. Truist emphasizes availability for its clients through various means:
General inquiries: 844-4TRUIST (844-487-8478), available Monday to Friday, 8 a.m. to 8 p.m., and Saturdays, 8 a.m. to 5 p.m. ET.
Telecommunications Relay Services: Dial 711 to initiate a call, facilitating communication, primarily if you rely on assistive technologies.
Truist's customer service provides answers to your questions and offers a supportive environment as you navigate your HELOC.
Understanding the eligibility criteria before applying for a Truist HELOC is smart as it gives you a clear picture of where you stand. Truist considers multiple factors, including your credit score (indicating your credit responsibility), property type and equity, as well as your income and employment status (ensuring you have the means to repay the borrowed amount). Knowing these specifics beforehand can help you gauge your chances and come prepared when you decide to apply for a HELOC with Truist.
Minimum Credit Score
Truist keeps its HELOC qualifying criteria close to the chest, but mentions that having "excellent" credit paves the way for the lowest possible rate. Your credit score is like your financial report card, showing Truist how well you manage your money. Although Truist doesn't explicitly state a minimum requirement, lenders typically prefer scores of at least 680; many may not accept scores lower than 620. Having a higher credit score can unlock larger loan amounts and more competitive interest rates, saving you a good chunk over time.
Property Type and Home Equity
Truist's HELOC is available for various property types, including owner-occupied, single-family homes, primary or secondary residences and condominiums in select states. However, the door is closed for investment homes, mobile or manufactured homes or cooperatives. For a HELOC, Truist must hold either the first or second lien on the property and if it’s a second home, you need to occupy it for at least 14 days each year.
While Truist doesn't specify a minimum equity requirement, generally, lenders like seeing at least 15% to 20% equity in your home. This equity is your stake in the property, and more of it can mean better loan terms. Keeping your property insured, including flood insurance where needed, is a must.
Income and Employment
Truist delves into your income and employment situation to gauge your ability to handle the HELOC repayments. While it doesn't indicate a specific minimum income, Truist looks for stable employment, typically defined as having a job with a steady income for at least two years.
Your debt-to-income (DTI) ratio also steps into the spotlight. It's the slice of your monthly income that goes towards paying debts. While a DTI below 43% is generally preferred, one below 36% could potentially improve your chances of securing more favorable loan terms. Truist's income and employment verification is a lens through which your financial steadiness is viewed, ensuring the HELOC doesn't become a financial strain.
Is Truist Right For You
While Truist has a lot to offer, such as various repayment options, a straightforward application process and payment relief, evaluating whether its terms, support system and overall service framework fit well with your financial scenario and long-term objectives is essential. A proactive approach in choosing the right lender allows you to maximize the benefits you can reap from your HELOC.
Who Can Benefit From a HELOC From Truist?
Homeowners searching for a lender offering flexible borrowing solutions might find Truist to be a perfect match. Its 10-year draw period gives borrowers the freedom to access funds on an as-needed basis, which can be a significant advantage when dealing with unexpected costs or funding home renovations. Moreover, for those who require a swift application and closing process due to urgent financial needs, Truist distinguishes itself with an efficient turnaround. The application can be wrapped up in less than 15 minutes, and the average closing period is between 30 and 35 days, facilitating quicker access to funds.
Truist also caters to borrowers seeking various repayment options to align with their financial plans. With choices ranging from variable-rate and fixed-rate to interest-only payments during the draw period, you have many options to suit different budgetary requirements. Truist's flexibility and responsiveness to diverse borrower needs make it a strong contender for those seeking a HELOC tailored to their unique circumstances.
Who Shouldn’t Secure a HELOC From Truist?
Certain borrowers might find that Truist doesn't quite align with their needs. For starters, its HELOC services are geographically limited, catering only to specific states. That means borrowers living outside these areas will have to seek financial solutions elsewhere. Additionally, those who are less inclined toward using digital platforms might encounter challenges with Truist's application process. Although the bank provides alternatives like in-person and phone applications, it primarily promotes its online process, which might not be suitable for everyone.
Truist may not be the ideal lender for individuals who anticipate closing their HELOC ahead of schedule, especially if they opt to have the bank cover closing costs initially. It stipulates that borrowers must reimburse them if the account is closed within three years. These nuances in Truist's offerings underscore the importance of borrowers thoroughly assessing whether the lender's terms and conditions align with their specific situations and financial strategies.
How to Apply
Knowing each step to securing a HELOC from Truist can equip you with a clear roadmap, simplifying the journey ahead. Preparing for each phase saves you time and brings clarity, making the process less daunting. Here’s what to expect with Truist:
It all starts with filling out an application, which can take less than 15 minutes. You can do it online on Truist’s website, in person at a branch or over the phone at 844-4TRUIST. The online method is quick and convenient, but if you’re under 18 or not a US citizen, a branch visit is the way to go.
Once your application is submitted, a Truist representative will reach out to review your details and may ask for additional documentation like tax statements or recent pay stubs.
After your application is reviewed and approved, you move to the closing phase. The time from application to closing averages between 30 and 35 days.
This step-by-step guide makes securing a Truist HELOC less of a maze. A clear picture of what lies ahead removes the guesswork, making for a more straightforward borrowing experience.
What to Do if You’re Denied
Getting your HELOC application denied can be a blow, but it's not the end of the road. Reflect on the reasons for the denial, then take proactive steps to increase the likelihood of a positive outcome in your next application. Here's what you can do:
Understanding Denial Reasons: First, determine why Truist denied your application. It could be due to a low credit score, high debt-to-income ratio or insufficient home equity. This information is invaluable as it highlights the areas you need to work on.
Improving Eligibility: Once you understand the denial reasons, it's time to work on enhancing those areas. It might mean reducing debts, improving your credit score by paying bills on time or building more equity in your home.
Reapplying: After you've worked on your financial profile, reapplying is the next step. With an improved credit standing or a lower debt-to-income ratio, you might now meet Truist's criteria for a HELOC.
Alternative Financing Options: If reapplying isn't feasible or possible, explore other financing options like personal loans, different types of credit lines or even other lenders for a HELOC. Each lender has its own criteria, and some may have more lenient requirements.
Seeking Financial Counseling: Sometimes, seeking professional advice is beneficial. Financial counselors can provide insights into managing your finances better, improving your creditworthiness and exploring other financing options you might not be aware of.
A denial isn't a dead end. It could be an opportunity to understand your financial standing better, work on improving it or explore other avenues that lead you to your financial goals. By taking the right steps and having a positive outlook, navigating past a HELOC denial toward a sound financial future is much more than achievable.
Frequently Asked Questions About Truist as a HELOC Lender
We answered some common questions borrowers have when considering Truist as a HELOC lender. We'll shed light on what to expect.
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