Both products are home equity lines of credit, but the Wealth Builder HELOC and a standard HELOC are designed for very different purposes and operate in fundamentally different ways.

Lien Position

A standard HELOC is typically in second lien position — behind an existing first mortgage. The Wealth Builder HELOC is a first-lien product — it replaces your mortgage entirely. There is no underlying first mortgage when you have the Wealth Builder HELOC.

Purpose

A standard HELOC is primarily used to access equity for specific expenses — home improvements, debt consolidation, education. The Wealth Builder HELOC is designed as a full mortgage replacement — a long-term strategy to eliminate interest and build equity faster than a traditional loan allows.

Rate Index

Standard HELOCs are typically tied to the Prime Rate. The Wealth Builder HELOC is tied to 30-day SOFR plus a margin.

Loan Amounts

Standard HELOCs are typically capped at lower amounts (often $250,000–$500,000 by most conventional lenders). The Wealth Builder HELOC supports loan amounts up to $3,500,000.

Income Qualification

The Wealth Builder HELOC uses a more conservative DTI qualifying payment (full P&I on the entire line). Standard HELOC qualification may use a lower interest-only qualifying payment.