Achieve is expanding both borrowing capacity and borrower eligibility for its fixed-rate HELOC as the company prepares to bring the product to mortgage professionals through its upcoming third-party origination channel.
Effective June 2, Achieve increased the maximum loan amount on its HELOC from $500,000 to $700,000. The company also raised its maximum combined loan-to-value ratio to 90% and increased its maximum debt-to-income ratio to 50%.
The changes mark the second expansion of the product this year. In April, Achieve increased its loan limit to $500,000 and lowered rates in several credit tiers.
While the updates may appear incremental, they collectively broaden the pool of borrowers who may qualify for the product. Higher loan limits can help homeowners with significant equity access larger amounts of capital, while the expanded CLTV and DTI thresholds may open the door to borrowers who previously fell outside underwriting guidelines.
The move comes as Achieve prepares to launch Achieve Pro, a third-party origination platform expected to debut later this year. The company has said the channel will allow mortgage professionals to offer its fixed-rate HELOC product to borrowers through a wholesale-style model.
"As we continue building our national TPO platform, enhancements like higher loan limits make our fixed-rate HELOC even more compelling for our lender partners and their clients," said Nectar Kalajian, managing director of Achieve Home Loans.
Unlike traditional variable-rate HELOCs, Achieve's product features fixed rates and fully amortizing payments throughout the life of the loan. The lender said qualified borrowers may be eligible for annual percentage rates as low as 5.5%.
The product is currently available in 31 states, representing nearly 80% of the U.S. population, according to the company.
