Your Top Questions About Our Secured Line of Credit
The HilLOC (Hillmount Capital Secured Line of Credit) is similar to a HELOC. Approved funds are in place and available as needed providing borrowers with peace of mind.
Q – What is the difference between a HilLOC and a mortgage?
A – The HilLOC acts as a revolving facility (similar to a credit card or line of credit). Instead of borrowing funds in a lump sum and incurring the cost of the maximum available loan, you can withdraw and pay down the facility as needed.
Q – Who would benefit from the HilLOC?
A – Anyone who needs convenient ongoing access to funds for current and future needs. Common scenarios include: self-employed, working capital requirements, debt consolidation, and payments under installments (tax, deposits for construction, etc.)
Q – Can borrowers with fluctuating income apply for the HilLOC?
A – Yes, this product may be better suited for borrowers that can’t adhere to a specific payment schedule.
Q – Is there a limit to how much you can borrow?
A – Loans are available starting from $100,000 up to $3,000,000.
Q – What types of properties can be used to secure a HilLOC?
A – The HilLOC is for residential and commercial properties and it is not limited to personal residences.
Q – How does a HilLOC draw differ from a construction loan draw?
A – Other than borrowing in minimum increments of $20,000, there are no requirements for the HilLOC draw other than the loan not being in default. The client can draw on the loan as often as needed.
A construction draw has to meet a number of conditions attesting to progress, and has legal and other fees associated with the advancing of funds.
Q – Do you offer the HilLOC product in both 1st and 2nd position?
A – The HilLOC can be offered in both 1st and 2nd positions. We can structure a total equity plan providing borrowers with both a mortgage and a HilLOC.
Q – Can the rate on the HilLOC change?
A – We offer the option of having a fixed rate or a floating rate over the course of the term.
Q – How does interest work on the HilLOC?
A – The borrower has access to the facility approved and can draw funds at any time in minimum increments of $20,000.00. Interest will only be paid on the amount advanced to date. For a paydown, interest will be adjusted on the new balance, as of the 1st of the following month.
Q – How quickly can you approve and fund a HilLOC?
A – We can close as quickly as three days from start to finish. Typically, the average loan takes between five and ten days because the borrower’s lawyer needs time to prepare their documents, review, and respond.
Q – Do you accept drive-by appraisals in rush situations?
A – Our policy is that the appraiser should go in and see the interior. Depending on the location and LTV, we may make an exception.
Q – When can the loan be paid down?
A – The HilLOC can be advanced and paid down on the first of the month.