PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal.
Home Equity Explained
Learn about how you can leverage the equity in your home for remodeling, school tuition, or to make a large purchase.
Home Equity Basics
You can use your Home Equity For:
Home Renovation
- Whether you are renovating to get more space, reduce energy costs, or to turn your house into your dream home, accessing your home equity can be a good option.
- Estimating the cost of your project is the first step. Get quotes from multiple contractors, and to be safe, add 20-30% to the total to account for potential overages.
- Estimate the cost of a home renovation with our tool.
Repairs or Maintenance
- Regular maintenance and minor repairs are a part of homeownership. But if your home needs more costly repairs, like a new roof or floors, using your home equity could be a smart choice.
- Estimating the cost of your project is the first step. Get quotes from multiple contractors, and to be safe, add 20-30% to the total to account for potential overages.
Financing a Purchase
- Remember, the interest you’ll pay on a home equity line of credit will add to the overall cost of any purchase. Your interest rate and monthly payment may vary over the life of your loan depending on the loan product you choose to use, and if you can’t make a payment you may put your home at risk. So carefully consider if the expense is worth it.
To qualify, you’ll need enough equity to borrow against, a good credit history and proof of a steady income. You will also be asked to provide information about current debts and recurring monthly obligations. An appraisal will be ordered to determine your home’s current market value.
If you own a home and are looking to borrow money, consider the benefits of a home equity line of credit.
Home Equity line of credit can be used to pay for a variety of things including home renovations, consolidating debt, college tuition, major purchases and more.
The Benefits:
A Choice Home Equity Line of Credit (Choice HELOC) gives you easy access and flexibility in spending your funds.
- Interest rates are typically lower than credit cards and other loans.
- Fixed and Variable Rate Options are available for a balance you've taken.
- The interest paid may be tax-deductible; consult a tax professional to assess your situation.
The Risks:
Since a Choice Home Equity Line of Credit uses your home as collateral, you will need to consider potential risks:
- If payments are missed, there is the possibility that you could lose your home.
- The maximum amount borrowed is a portion of your home's value which is determined by the market. So, if the market takes a down turn – you can owe more than your house is worth.
Please Note: The property securing the CHELOC must be located in a state where PNC offers home equity products. PNC does not offer the CHELOC product in Alaska, Hawaii, Louisiana, Mississippi, Nevada and South Dakota.
What is the PNC Home Equity Application Process?
Submit Your Credit Application
Apply for a home equity line of credit by visiting the Choice Home Equity Line of Credit page.
The minimum amount of information you should be prepared to answer at the time of application includes:
- Personal Information (Full name, Social Security number, Date of Birth, employment status, income)
- Contact Information (phone, email)
- Property Information (address, property type, estimated property value)
- Requested Loan Amount
Upon submission of your application, PNC will obtain and review your credit history. Approval for credit is contingent upon your credit history and other factors.
Provide Required Documentation
Additional information and other required documentation may be needed to process your credit application. Depending on your individual financial situation, you may be required to provide some or all of the following:
- Tax statements
- Copies of pay stubs
- Financial statements (bank and asset)
- Information on additional properties you may own
See our PNC Home Equity Application Checklist below, or (PDF) download the PDF version of our checklist, for a list of documentation you may need, depending on your individual situation.
Documentation, Credit History and Property Valuation Review
We’ll evaluate your credit history, verify your employment, verify your income, and review all supporting documentation submitted.
We’ll verify ownership and complete a valuation of the property being pledged as collateral by ordering an appraisal product from an independent service provider, who will always inspect and photograph the property’s exterior. In some cases, this independent service provider may call you to setup a time to inspect both the property’s interior and exterior.
A review of all information will enable us to determine that you meet the qualifications for the loan or line or credit for which you applied.
Final Credit Decision
If your request for credit is approved, we will:
- Communicate the final approval or a counter-offer to you, detailing any closing stipulations.
For example, updating the declaration page of the Homeowner’s Insurance Policy listing PNC Bank, NA as loss payee is required.
- We’ll then schedule a closing date and verify the amount(s) to be disbursed, if applicable, including the amount(s) of any required payoffs.
If we are unable to approve your request for credit, you will receive a communication indicating the reasons for the decline.
Loan Closing and Disbursement of Funds
At closing all applicants to provide two forms of identification; one must be a valid photo ID. After reviewing the terms and conditions of your line of credit, you will be asked to acknowledge and accept those terms and conditions by signing loan documents.
When using a primary residence as collateral, a three business day right to cancel (“rescission”) period is required by law to allow applicants the opportunity to cancel their home equity line of credit application.
Once your right to cancel period has expired, the funds from your home equity line of credit will be available.
Use this list to gather the documents you’ll need.
You may be asked to provide, for all applicants, some or all of the items listed below to decision your credit request. Additional documents may be requested upon application review. In order to expedite the process, please provide all required information at the time of application. Submitting information can be done via Home Insight Tracker, email or fax.
Personal Information for Applicant and Co-Applicant:
- Full legal name, Social Security number, Date of Birth
- Current address and previous, if less than two years
- Current employer and previous, if less than two years
- Phone number for employer’s main office or Human Resources
- Government issued photo ID (Driver’s license, US passport or state-issued ID)
Required Income Documentation for Applicant and Co-Applicant
You may fall into one or more of these categories. Please submit all documents that apply.
For Wage Earners:
- Most recent paystubs showing last 30 days YTD income
- Most recent 2 consecutive years W-2s
- If Commission Income over 25%: All items indicated above and most recent 2 consecutive years Personal Federal tax returns
For self-employed & ownership is less than 25%
- Most recent 2 consecutive years W-2s, if applicable
- Most recent 2 consecutive years Personal Federal tax returns (with all schedules)
- Most recent 2 years K-1s (if applicable)
For self-employed & ownership is greater than 25%
- Most recent 2 consecutive years Business Federal tax returns (with all schedules)
- Most recent 2 consecutive years Personal Federal tax returns (with all schedules)
- Most recent 2 years K-1s (if applicable)
Social Security Income and Pension Income:
- Award letter demonstrating SS or retirement benefit
- Letter from paying organization/pension, annuity
or disability
Investment Income
- Most recent investment statements and proof of receipt
- Most recent 1099
Rental Income
- Most recent 2 consecutive years Personal Federal tax returns
- Lease agreements — current
- Mortgage balance statement (if applicable)
Additional Documents
If applicable, we will request:
- YTD Balance Sheet for period ending no greater than 6 months prior to application
- Audited YTD Profit & Loss Statement (P&L) not aged more than 4 months, and the statements from accounts with business activity, signed.
- Current year tax return extension
- Trust Agreement (all pages)
- 30-day payoff statement for all required payoffs
- Power of Attorney (must be recorded in same county as property)
- 2 years Personal Federal tax returns (with all schedules)
PNC and Non-PNC customers may borrow up to 89.9% of the fair market value of their home for 1st lien Choice HELOCs.
PNC customers may borrow up to 85% of the fair market value of their home for 2nd lien Choice HELOCs.
Non-PNC customers may borrow up to 80% of the fair market value of their home for 2nd lien Choice HELOCs.
These collateral states can only go up to 85% loan to value of the home for 1st lien Choice HELOCs:
- Connecticut
- Kansas
- Minnesota
- Massachusetts
- Tennessee
These collateral states can only go up to 80% loan to value of the home for 1st and 2nd lien Choice HELOCs:
- Arkansas
- Colorado
- Idaho
- Iowa
- Maine
- Montana
- North Dakota
- Nebraska
- New Hampshire
- New Mexico*
- Oklahoma
- Oregon
- Rhode Island
- Texas
- Utah
- Vermont
- Washington
- Wyoming
These collateral states can only go up to 80% loan to value of the home for 2nd lien Choice HELOCs:
- Arizona
- California
- Florida
- Massachusetts
- Michigan
- Minnesota
- New York
*Please Note: New Mexico can go up to 85% in 2nd lien; it can only go to 80% for first lien.
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