Prosper help - Home Equity FAQs

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

Once your application is approved and your HELoan is opened, Spring EQ can assist you with any HELoan servicing questions.

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

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

Log in to your Prosper Account to submit your required verification documents online. Visit your Prosper Account to check the status of submitted items and upload outstanding documents at any time in the application process.

Document status definitions:

• Submitted– We have received your document and we’ll review it shortly
• Complete– Your document was confirmed and your loan application is currently in review
• Incomplete– Your application was missing necessary documents

We do not accept documents by mail or email.

If you need help, please email home@prosper.com.

A home equity loan (HELoan) and a home equity line of credit (HELOC) are both secured by your house. This allows borrowers to access larger sums of money at lower rates.

A HELoan is a bit like a second mortgage: it’s a lump sum loan with a fixed interest rate that you’ll receive in a single cash deposit. You’ll start repaying it immediately through fixed recurring payments.

A HELOC is a line of credit with a variable interest rate that functions similar to a credit card. A HELOC lets you borrow when you need to² instead of all at once.

For more information on the differences between a HELOC and a HELoan and how to find the best option for you, visit Prosper’s 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 to save on interest, and there will never be any penalty fee for doing so.

Because you receive a HELoan as a lump sum up front, recurring payment amounts are the same for the life of the loan—unless you decide to pay your HELoan off early. Your payment amount will be based on the APR in effect at the start of your loan.

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. The fixed APR includes interest, closing costs, and other fees that may apply. This APR will not change over time.

A HELoan through Prosper 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. 

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 regular payments (similar 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 regular payments (similar 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 the lending partner that made the offer—either Spring EQ or Citizens Bank.

Once your application is approved and your HELOC is opened, your lender can assist you with any HELOC servicing questions.

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

Citizens Bank
877-788-2265

Once you start drawing on your line of credit, you will be expected to make regular payments. However, during the draw period, you can decide to pay either interest only⁵ or interest and principal payments. 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.

The length of your repayment is set by your lender and will be detailed in your offer. This is the time during which you must repay any outstanding principal and interest on your HELOC. You cannot borrow from your HELOC during the 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, regular payment amounts are not usually fixed.

During the draw period (10 years^6,7), you will be required to make recurring payments with a minimum payment determined by the lender. During the repayment period, you will be making recurring minimum payments determined by the lender. Your lender will calculate the recurring minimum payment amount using a method that will be described in your loan agreement.

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 no pre-payment penalties. If you pay your HELOC down completely during the draw period (the first 10 years^6,7), 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. Your repayment period is set by the lender and will be detailed in your offer.

The draw period is determined by your lender and is the time frame in which you are actively borrowing. You are only required to pay the interest on your HELOC during the draw period.⁵ You'll pay down what you owe during the repayment period—15 or 20 years^6,7 depending on the offer—by making regular payments calculated using the current interest rate. You can always pay off your entire outstanding balance at any time.

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

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.