Equity Loans

Equity loans (and lines of credit) utilize the accrued equity on your home as collateral for lending. By borrowing against the value of your home, you can have access to cash without tapping into your savings or investment accounts. 

The most common of this type of loan is a Home Equity Loan, which allows you to borrow based on the available equity in your home (minus the combined amount of any current liens on the residence). The funds from the loan may be used for a variety of different scenarios, not all of which must be home related, and, in some cases, the interest is tax deductible. 

Other types of equity loans offered by Home Federal include:

Home Federal is a participating lender of Minnesota Housing Fix-Up Fund loans. This unique loan program allows you to borrow funds for remodeling, repairs, and energy efficiency projects at a low, fixed interest rate. Monthly payments are low and affordable, and you can borrow up to 110% of the after-improved value of their home. Loan amounts range from $2,000 to $50,000.00. It is important to know the Fix-up Fund loan applicants may not have a household income greater than $96,500.00. They must also own and occupy the property to be improved. Credit and repayment ability are considering when applying for this loan.

To apply for a Fix-up Fund loan, or to discuss equity loan options, please contact your local banker.

Much like a home equity loan, a Home Equity Line of Credit (HELOC) allows you to leverage the equity in your house to meet financial or large purchase goals. Unlike a traditional loan, you can draw on your credit line in as little as $200.00 increments. You also have the option to pay the money back as you go in order to avoid long-term interest accumulation. Home Equity Line of Credit applicants are required to have at least $5000.00 in equity on their home.

To apply for a Home Equity Line of Credit, or to discuss line of credit options, please contact your local banker.

A land and lot loan is designed specifically for the purchase of property without a residence on it. It is perfect for clients that have found the perfect building location, but aren’t quite ready to construct their dream home yet, and/or clients that are searching for recreational land like that used for hunting. In some cases, you may also use the equity in a lot or land that you already own to help with your borrowing needs.

To apply for a Land and Lot loan, or discuss other land purchasing options, please contact your local banker.


For more information on equity loans, and to find out what you qualify for, please contact one of our Personal Loan Officers.

Additional loan products: