Wealth Builder HELOC — Lendia California
What LTV Limits Apply to the Wealth Builder HELOC?
The Wealth Builder HELOC uses a tiered LTV matrix that varies based on FICO score, occupancy type, loan purpose, and loan amount. Understanding this matrix helps you determine how much line you may qualify for based on your property value and credit profile.
General LTV Guidelines
- Maximum LTV up to 90% for primary residence purchase transactions at qualifying FICO scores
- LTV limits are generally lower for cash-out refinances than for purchase or rate/term refinance
- Investment property transactions carry lower maximum LTV than primary or second home
- Higher FICO scores unlock higher LTV allowances within each occupancy tier
How FICO Affects LTV
The program matrix is structured so that borrowers with stronger credit scores qualify for higher LTV ratios. A borrower at 760+ FICO may qualify for the maximum LTV in their tier, while a borrower at 620 will face a more conservative LTV limit. Lendia can pull the current matrix and show you exactly where you fall.
Loan Amount Considerations
For loan amounts above $2,000,000, additional LTV restrictions may apply, and a second appraisal may be required. The program supports loans up to $3,500,000, but the highest LTV tiers are typically reserved for loans in the standard conforming to super-jumbo range.
How LTV Is Calculated
LTV = Loan Amount ÷ Appraised Property Value. For a $500,000 line on a property appraised at $700,000, LTV = 71.4%. The appraisal used is a full interior appraisal ordered through the lender’s approved AMC.
What each LTV point means in dollars (illustrative example)
On a $1,000,000 appraised value:
- 90% LTV: $900,000
- 85% LTV: $850,000
- 80% LTV: $800,000
Every five percentage points of LTV is $50,000 of loan size at that value. That is why a move from one credit tier to the next can change your borrowing power by tens of thousands of dollars.
What happens when the appraisal comes in lower
Suppose you expected $1,000,000 and the appraisal is $950,000. At a 90% LTV, the maximum falls from $900,000 to $855,000, a reduction of $45,000. On a purchase, that gap becomes additional cash from you; on a refinance, it reduces the cash you can take out.
Getting ready for the appraisal
- Make a list of improvements with dates and costs, and give it to the appraiser.
- Gather recent sales in your neighborhood that support your value, but remember that the appraiser makes the call.
- Tidy the property and fix minor visible items so condition ratings do not suffer.
Which combinations get the highest limit
The page says the highest limit applies to primary residence purchases at qualifying FICO scores, and that investment property carries lower maximums. Cash-out refinances are generally lower than purchase or rate and term transactions. Because the matrix has several dimensions, ask for the line for your specific FICO, occupancy, and transaction type before making plans around a headline figure.
Matching LTV to your goal
Work backward from what you need. For a purchase, decide on a comfortable down payment and see which LTV tier it implies. For a refinance, subtract your payoff from the allowed total to see the cash available. In both cases, leave a margin for the appraisal coming in lower and for closing costs, which can reduce what actually reaches you.
Frequently asked questions
Is LTV measured on the purchase price or the appraised value?
On a purchase, it is generally based on the lower of the price or the appraised value.
Can I challenge a low appraisal?
A reconsideration of value request with supporting comparable sales can be submitted through the lender, though there is no guarantee that the value will change.
Does a larger loan always need a lower LTV?
The page notes that above $2,000,000 additional restrictions may apply, so large loans deserve an early review.
Related guides
Quick recap
- Each 5 points of LTV equals $50,000 on a $1,000,000 home.
- An appraisal below your estimate reduces the maximum line dollar for dollar at the same LTV.
- Request your LTV tier for your exact FICO, occupancy, and purpose.
- What Is the Wealth Builder HELOC?
- How Does a First-Lien HELOC Differ from a Second-Lien HELOC?
- What Are the Eligibility Requirements?
- What Credit Score Is Required?
- How Is the Rate Determined? (SOFR Explained)
- How Is the Qualifying Payment Calculated?
- What LTV Limits Apply?
- Can I Use Asset Depletion Income?
- What Property Types Are Eligible?
- What Is the Draw Period and Repayment Structure?
- Can I Use It to Purchase a Home?
- How Does It Compare to a Cash-Out Refinance?
- What Are the Closing Costs?
- What Types of Borrowers Benefit Most?
- How Do I Apply?