Overview of Aven's Home Equity Loan Products
Aven offers an innovative approach to tapping into your home's equity by combining the features of a traditional HELOC with the convenience of a credit card. The Aven HELOC card is a Visa card backed by Coastal Community Bank, an FDIC-insured institution. It provides a flexible line of credit based on your tappable home equity and rewards you with unlimited 2% cash back on every purchase.
Key Features:
- Flexible Funding Options: Use the card for everyday purchases or cash out large amounts directly into your bank account. For significant expenditures, you can opt for fixed installments over five or ten years through the "Aven Simple Loan," similar to a home equity loan.
- Security Measures: The card includes built-in safeguards, such as instant alerts for every purchase and approval requests for larger transactions via the mobile app.
- Variable Interest Rates: The interest rate adjusts with market rates, potentially offering competitive rates over time.
- Generous Credit Lines: Qualified applicants can access credit lines up to $250,000 (up to $100,000 in certain states).
Payment and Rewards:
Monthly payments are straightforward, calculated as 1% of the principal balance plus any monthly interest and fees. To take advantage of the 2% cash back rewards, enrollment in auto-pay is required, which also earns you a 0.25% rate discount. Rewards are issued as statement credits after satisfying the minimum payment.
Fees and Charges:
While the Aven HELOC card eliminates many common fees, there are some costs to be aware of:
- Transaction Fees: A one-time fee ranging from 2% to 4.9% applies to cash-outs and balance transfers, depending on your card agreement.
- Late Payment Fee: A $29 fee is charged for any late payments.
- No ATM Withdrawals: The card cannot be used for cash withdrawals at ATMs or banks, encouraging responsible use of your home equity.
Eligibility Requirements:
To qualify for the Aven HELOC card, applicants need:
- Minimum Home Equity: At least 12% equity in a primary residence, second home, or investment property.
- Credit Score: A FICO and Vantage score of at least 640.
- Single Mortgage Condition: The property must have only one mortgage at the time of application.
- Insurance Beneficiary Addition: For credit lines over $100,000, Aven and Coastal Community Bank must be added as beneficiaries on your homeowners insurance policy.
Application Process:
Applying for the Aven HELOC card is a seamless experience that can be completed online in approximately 15 minutes. Checking your eligibility won't affect your credit score, allowing you to explore this option risk-free.
Pros:
- No Hidden Fees: Enjoy peace of mind with no annual, origination, appraisal, notary, or pre-payment fees.
- Quick Approval Process: Get approved in as fast as 15 minutes, allowing you to access funds when you need them.
- Lower Equity Requirement: Qualify with just 12% home equity, compared to the usual 15-20% required by other lenders.
- Cash Back Rewards: Earn unlimited 2% cash back on all purchases, maximizing the value of your spending.
Cons:
- Minimum Draw Requirement: For credit lines above $100,000, a minimum draw of $50,000 is required within the first three months.
- Transaction Fees on Cash-Outs and Balance Transfers: Aven charges a fee of up to 2.5% on these transactions.
- Availability Limitations: The Aven HELOC card is not available in all states, and the line of credit may be limited in 15 states.
Conclusion
The Aven HELOC card stands out as a versatile financial tool that leverages your home equity while offering the convenience of a credit card and the benefits of cash back rewards. With its quick approval process, lack of hidden fees, and flexible repayment options, it's an attractive option for homeowners looking to make the most of their property's value.
