As refinance opportunities remain limited for many homeowners, Gershman Mortgage is expanding its home equity offerings with a new standalone home equity line of credit, reflecting a broader industry focus on equity lending as an alternative source of production.
The St. Louis-based independent mortgage lender announced the launch of its 5-Day HELOC, a standalone home equity line of credit that allows qualified borrowers to access up to $750,000 without refinancing their existing first mortgage.
According to the company, borrowers can choose repayment terms of 10, 15, 20, or 30 years, and approved loans can close in as few as five business days. Gershman also said no hard credit inquiry is required to begin the application process.
The company cited ICE estimates showing U.S. homeowners collectively hold approximately $11 trillion in tappable home equity, highlighting what many lenders view as a significant opportunity as borrowers remain reluctant to refinance mortgages originated during the low-rate environment of recent years.
"A lot of them don't want to touch their first mortgage to use it," said Jeff Ogden, senior vice president of production at Gershman Mortgage, referring to homeowners who have accumulated equity.
According to Gershman, loan officers guide borrowers through the application process, which the company said is designed to be straightforward and can often be completed on the borrower's behalf.
Founded in 1955, Gershman Mortgage is licensed in 22 states and offers conventional, FHA, VA, USDA, jumbo, Non-QM, and multifamily financing, along with correspondent lending services.
What It Means
Gershman's announcement reflects a trend that has gained momentum across the mortgage industry as lenders look beyond traditional refinance volume and expand their home equity product offerings.
With many homeowners holding first mortgages carrying interest rates well below today's market levels, standalone HELOCs have become an increasingly attractive way for lenders to serve existing customers without requiring them to replace their primary mortgage.
For LOs, that makes home equity lending more than a consumer product — it represents another opportunity to generate business from past clients who may not be in the market for a purchase loan or refinance but still need access to financing.
The emphasis on speed is also notable. By promoting a closing timeline of as few as five business days, Gershman is positioning the product in a segment where lenders increasingly compete on turnaround times and borrower experience as much as loan terms.
Many lenders have broadened their product mix beyond first mortgages as elevated rates continue to suppress refinance activity. Standalone HELOCs are increasingly becoming part of that strategy, giving LOs another way to maintain client relationships and diversify production while borrowers remain rate locked.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
