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Your home is more than just where you live—it can also be a powerful financial resource. Whether you’re looking to fund a major renovation, consolidate debt, or cover unexpected expenses, Alerus offers solutions to help you leverage home equity for life’s needs.

Options for home equity financing.

Home Equity Line of Credit (HELOC)

Enjoy the flexibility of borrowing as you need, with a revolving line of credit that allows you to access funds over time.

  • Flexible, on-demand access to funds – borrow as much or as little as needed
  • Pay interest only on what you borrow
  • Access funds during the draw period without having to reapply
  • Up to 10-year draw period followed by a fixed repayment period
  • Perfect for ongoing or unexpected expenses
  • Up to three fixed rate advances allowed at one time during the draw period

Home Equity Loan

Secure a lump sum at a fixed rate with a home equity loan, ideal for large, one-time expenses. It provides a clear repayment plan and peace of mind knowing your interest rate won’t change.

  • Fixed interest rates for consistent monthly payments
  • Flexible terms
  • Ideal for significant one-time expenses like debt consolidation or education
  • Interest may be tax-deductible when used for home improvements*

Put your equity to work.

Your home equity is a financial tool that can help you achieve a variety of goals. Here are a few ways you can put your home’s value to work for you:

 

  • Home Renovations: Upgrade your kitchen, add a new room, or make energy-efficient improvements.
  • Debt Consolidation: Simplify your finances by using your home equity to consolidate high-interest debts into one manageable payment.
  • Major Purchases: Fund life’s big moments—education, weddings, or dream vacations—with the equity you’ve built.
  • Emergency Expenses: Be prepared for the unexpected by accessing your home’s value to cover medical bills or unforeseen repairs.

 

Frequently Asked Questions

What is the difference between a home equity loan and a HELOC?

A home equity loan provides a lump sum with fixed payments and interest rates. A HELOC works like a revolving line of credit where you can borrow as needed, with variable interest rates.

Can I use a home equity loan or HELOC for any purpose?

Yes, you can use funds for home improvements, debt consolidation, education, and more.

What are the qualification requirements?

You typically need 15-20% equity in your home, a good credit score, and sufficient income to support repayment. Contact us to see if you qualify.

How much can I borrow with a home equity loan?

You can usually borrow up to 85% of your home’s equity, but it varies on your financial profile. Reach out to an Alerus advisor to see how much you qualify for.

Are home equity loans tax deductible?

Interest on home equity loans may be tax-deductible if the loan is used for home improvements. Consult a tax advisor for details.

Borrowing options

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Specialty Assistance Programs
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Home loans for doctors
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Personal Loans and Lines of Credit