Prosper help - Home Equity FAQs

You can submit all of your required verification documents online by logging in to your Prosper Account. Once you’ve uploaded your documents, you’ll be able to see that they’re successfully uploaded.  

We do not accept documents by mail. If you need help, please email home@prosper.com. 

A HELOC is a line of credit that usually has a variable interest rate and a revolving credit limit that functions similarly to a credit card. It lets you borrow when you need to instead of all at once*.  

A HELoan is a loan that typically has a fixed interest rate and is disbursed in a lump sum at the beginning of the loan. It’s a bit like a second mortgage: you’ll start repaying it immediately through fixed monthly payments. 

HELOCs and HELoans are both secured by your house. This allows borrowers to access larger sums of money at lower rates.  

For more information on the differences between a HELOC and a HELoan and how you might choose if one of them is the best option for you, visit Prosper’s popular blog article that spells it all out: “HELOC vs HELoan: What’s the difference?”  

No, you will not schedule your HELoan payments with Prosper. After we verify your HELoan application, we send it to our lending partner. 

Once your application is approved and your HELoan is opened, our lending partner can assist you with any HELoan servicing questions. 

Spring EQ 
888-978-9978 
Servicing@SpringEQ.com 

You can always pay off your HELoan early. 

Because HELoans are paid in lump sums up front, monthly payment amounts are the same every month for the life of the loan—unless you decide to pay your HELoan off early. 

Your monthly payment will be based on the APR in effect at the start of your loan.  

For example, if your HELoan is $75,000 with a 15-year term and a 7.5% interest rate, your monthly payment could be $695.26. 

When will I start making monthly payments on my HELoan through Prosper? 

You will begin making monthly payments as soon as you take out your HELoan. Your lender can provide more information about when your first payment will be due. 

You can submit all of your required verification documents online by logging in to your Prosper Account. Once you’ve uploaded your documents, you’ll be able to see that they’re successfully uploaded.  

We do not accept documents by mail. If you need help, please email home@prosper.com. 

I uploaded a document, but it didn’t go through. What’s going on? 

Sometimes digital uploads aren’t clear, and you need to try again. If you’re having trouble, consider these upload tips: 

• Scan your documents in color, making sure the entire document is clear and legible 
• Acceptable file formats include PDF, JPG, JPEG, TIF, BMP, PNG, GIF 
• File size must be 100 MB or less 
• You can upload multiple files per document upload request 
• Ensure each file contains one document type. For example, ensure that “File_1” contains your driver’s license only. 
• Ensure none of the files are empty. 

The amount you’re eligible to borrow is based on how much equity you have in your home, your creditworthiness, your debt-to-income ratio, and your combined loan to value ratio or CLTV. CLTV is your overall mortgage loan debt expressed as a percentage of your home’s fair market value.  

Your APR will depend on a number of factors, including your credit history, as well as a  margin identified in your credit agreement, and the current prime rate when the loan is issued (www.wsj.com/market-data/bonds). 

A HELoan through Prosper usually has a fixed rate, meaning the interest you pay will remain the same for the life of your loan. This rate is calculated by adding the margin identified in your credit agreement to the current prime rate when the loan is issued (https://www.wsj.com/market-data/bonds). 

The term options for HELoans through Prosper include terms up to 30 years, and in most cases, borrowers can choose the term that best suits their needs. In general, the longer the term, the lower the monthly payment. On the other hand, shorter terms typically come with lower APRs and will reduce the total amount of interest you pay of the life of the loan. Term options are subject to credit approval. 

HELoans typically involve a time-consuming application and verification process—including a hard credit pull that impacts your credit score just to see your offer.  At Prosper, we’ve streamlined and securely digitized that process, empowering you to get a HELoan faster! Better yet, you can see your instant, personalized offer without affecting your credit score. 

You can use your HELoan for a variety of things including home improvements, debt consolidation, major purchases (appliances, cars, RVs, boats, etc.), and even miscellaneous expenses.

A HELoan is secured by your house. This means your home acts as collateral for your home equity loan in case you are unable to make your monthly payments (similarly to how your house is collateral for a mortgage). 

Because your home equity loan is secured, the APR you receive may be lower than unsecured personal loans or credit cards. 

A HELOC is secured by your house. This means your home acts as collateral for your line of credit in case you are unable to make your monthly payments (similarly to how your house is collateral for a mortgage). 

Because your line of credit is secured, the annual percentage rate (APR) you receive may be lower than unsecured loans or credit cards. 

No, you will not schedule your HELOC payments with Prosper. After we verify your HELOC application, we send it to our lending partner for completion. 

Once your application is approved and your HELOC is opened, our lending partner will assist you with any HELOC servicing questions. 

Spring EQ 
888-978-9978 
Servicing@SpringEQ.com 

Once you start drawing on your line of credit, you will be expected to make monthly payments. However, during the draw period, you can decide to pay either interest only or interest and principal payments2. Your lender can provide more information about when your first payment will be due. 

We’re happy that you’re interested in working with Prosper!

To answer your question, no – the payments for a HELOC and the payments for a Personal Loan cannot be combined, so you’ll need to pay them separately.

HELOCs typically involve a time-consuming application and verification process—including a hard credit pull that impacts your credit score just to see your offer. 

At Prosper, we’ve streamlined and securely digitized that process, empowering you to get a HELOC in only a few weeks! Better yet, you can see your instant, personalized offer without affecting your credit score.  

We’re happy to hear that you’re interested in a HELOC through Prosper! You can easily complete your application online by visiting https://www.prosper.com/heloc.  

If you have questions, you can check out our HELOC FAQ or speak with one of our HELOC support specialists by calling 800-954-2172. 

During the repayment period you'll pay down what you owe by making a monthly payment calculated using the interest rate in effect at the start of your repayment period.

When rates decrease, less interest is due, so more of your monthly payment repays the principal balance.

When rates increase, more interest is due, so less of your monthly payment repays the principal balance. In this case, you may need to make a single "balloon" payment to cover your unpaid balance in full at the end of your repayment period.

For Texas HELOCS different rules apply: if the interest rate increases during your repayment period, then your monthly payment will also increase in order to repay your balance by the end of the repayment period.

Your repayment will typically last 20 years.2 This is the time during which you must repay any outstanding principal and interest on your HELOC. You cannot borrow from your HELOC during this 20-year repayment period. 

Payments are calculated based on the outstanding line balance each month. You can always pay off your outstanding balance at any time. 

Because HELOCs are lines of credit, monthly payment amounts are not usually fixed. 

During the draw period, you will be required to make monthly payments of accrued interest, plus any principal balance in excess of your credit limit. Please note that if you only pay accrued interest during the draw period, your monthly payment during the repayment period may increase substantially.2  

During the repayment period, you will make monthly payments that are calculated based on your outstanding balance at the end of the draw period, plus accrued interest and other fees, charges, and costs.2 Refer to your credit agreement for details on how your lender calculates payments during the repayment period. 

Yes, you can pay off a HELOC early. You can always pay down or pay off your entire outstanding balance at any time during the life of your HELOC, and there are usually no pre-payment penalties.  If you pay your HELOC down completely during the draw period, then you’ll still have your line of credit open to use until the draw period ends. 

During the repayment period, you can no longer draw on your line, and you must start paying back any outstanding balance plus interest.2  

The draw period is the first period of your HELOC and usually lasts 10 years. During this time, you can actively borrow what you need*, and you have the choice to make interest-only payments on what you’ve borrowed2. If you pay back more of your principle, you can borrow that money again, as needed*, until the end of the draw period. 

The repayment period is the second period of your HELOC and usually lasts 20 years2. During this time, you’ll make monthly payments that are calculated based on your outstanding balance at the end of the draw period, plus accrued interest and other fees, charges, and costs. Refer to your credit agreement for details on how your lender calculates payments during the repayment period. You can always pay off your entire outstanding balance at any time. 

A HELOC through Prosper comes with a 30-year loan term, which is the total duration of your draw period plus your repayment period. (More information about draw periods and repayment periods in this Help Center article.) 

Your maximum line amount is based on the amount of equity you have in your home, your creditworthiness, your debt-to-income ratio, and other factors. Typically, HELOCs have a 20–30 year term with two distinct phases: 1) the initial draw period which can last up to 10 years, and 2) the repayment period which can last 10–20 years. 

Term: HELOCs usually have a 20–30 year term, which is the total duration of your draw period + your repayment period.  

Draw Period During the draw period, you can use up to your maximum line amount, and you may also make interest-only payments², which can result in a lower monthly payment. Your draw period may last up to 10 years. 

Repayment Period: During the repayment period, you can no longer draw on your line, and you must start paying back any outstanding balance plus interest. Your repayment period may last up to 20 years. 

Yes, you can apply for a HELOC on our platform if you have an FHA loan.  

A mortgage won't deter your eligibility to apply for a HELOC.

The maximum line amount, or credit limit, on your HELOC is based on how much equity you have in your home, your credit worthiness, your debt-to-income ratio, and your combined loan to value ratio or CLTV.  

CLTV is your overall mortgage loan debt expressed as a percentage of your home’s fair market value. If your home is worth $100,000 and you owe $40,000 on your mortgage and HELOC combined, then your CLTV is 40%.  

When you get a HELOC through Prosper, your mortgage and HELOC combined can be worth as much as 95%³ of your home’s fair market value. Consider what that means for your line amount by using Prosper’s HELOC calculator.