ARLO™ HELOC: The Alternative to a Reverse Mortgage
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Michael G. Branson, CEO of All Reverse Mortgage, Inc., and moderator of ARLO™, has 45 years of experience in the mortgage banking industry. He has devoted the past 20 years to reverse mortgages exclusively. (License: NMLS# 14040) |
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All Reverse Mortgage's editing process includes rigorous fact-checking led by industry experts to ensure all content is accurate and current. This article has been reviewed, edited, and fact-checked by Cliff Auerswald, President and co-creator of ARLO™. (License: NMLS# 14041) |
Michael G. Branson
Cliff Auerswald
As interest rates remain high, many homeowners nearing or in retirement are seeking ways to access their home equity without refinancing their historic low-rate mortgages. That’s where a Home Equity Line of Credit (HELOC) for seniors & retirees can be a smart solution.
This modern HELOC offers fast access to funds, flexible repayment, and a fully online application process designed specifically for older homeowners—without the need to sell or give up your home.
What is the ARLO™ HELOC for Seniors?
The ARLO™ HELOC is a line of credit secured by your home, specifically designed for older Americans, and is a direct alternative to taking a reverse mortgage loan. It allows you to borrow funds as needed, up to a preset credit limit, and repay only the interest while you live in your home. The loan is typically paid off when the home is sold or when the borrower permanently moves out.
This program is designed for homeowners aged 62 or older and offers:
- Up to $400,000 in credit limits (based on home equity and credit qualifications)
- No monthly principal payments required—interest-only payments apply
- 100% online application and fast funding, often in just 5 business days
- Lower rates than credit cards or personal loans
- No prepayment penalties
- Available even for 2nd lien positions
HELOC for Seniors – Quick Snapshot
| Feature | Details |
|---|---|
| Minimum Age | 62+ |
| Credit Limit | Up to $400,000 (based on equity and credit) |
| Minimum Draw at Closing | 80% of credit line |
| Monthly Payments | Interest-only (no principal due while in home) |
| Draw Period | 10 years, up to 25 draws |
| Application Method | 100% online, secure portal |
| Credit Pull Type | Soft pull for prequalification, hard pull if proceeding |
| Funding Timeline | As fast as 5 business days |
| Appraisal Required | No – Instant AVM valuation |
| Prepayment Penalties | None – pay off anytime |
| Compatible with Reverse Mortgage | No |
Key Benefits for Older Homeowners
- Keep your low-rate first mortgage while accessing funds through a HELOC in a second lien position
- Use funds for home renovations, medical expenses, or debt consolidation
- Minimal out-of-pocket costs and a soft credit pull during prequalification
- Flexible draw options over a 10-year period with up to 25 total draws
- No appraisal required—value is determined instantly using an Automated Valuation Model (AVM)
- Pay off at any time, without penalty
Real-World Use Cases
| Use Case | How a HELOC Helps |
|---|---|
| Home Repairs or Improvements | Fund essential upgrades like roofing, HVAC, or accessibility features |
| Medical or In-Home Care Costs | Cover rising healthcare needs without draining retirement accounts |
| Debt Consolidation | Replace high-interest credit card debt with a lower-rate, interest-only HELOC |
| Emergency Fund | Maintain peace of mind with access to cash if an unexpected cost arises |
| Helping Family Members | Provide financial help to children or grandchildren without liquidating other assets |
| Aging in Place | Modify your home to safely remain independent longer |
Who Qualifies?
To be eligible, you must:
- Be 62 years or older
- Own a qualifying property: single-family home, townhouse, condo, PUD, or duplex
- Have a FICO score of 660 or higher
- Keep debt-to-income under 50%
- Not currently have a reverse mortgage
- Have a combined loan-to-value (CLTV) of 75% or less
- Ensure the property is not listed for sale
Eligible Property Types
| Eligible Property Types | Ineligible Property Types |
|---|---|
| Single-family residences | Home currently listed for sale |
| Townhomes | 3-4 unit properties |
| Planned unit developments (PUDs) | Co-ops |
| Condominiums (including mid-rise and high-rise) | Commercially-zoned real estate |
| Duplexes | Multi-family (5+) real estate |
| Manufactured housing | |
| Timeshares | |
| Log homes | |
| Houseboats | |
| Mixed use properties | |
| Properties larger than 20 acres | |
| Properties with a reverse mortgage | |
| Properties purchased in the last 90 days | |
| Properties owned by land trusts | |
| Leasehold properties | |
| Ground lease properties |
How It Works
- Apply online in just 5 minutes
- Verify identity and income through a secure online application
- Soft credit pull shows the prequalification amount instantly
- Notary session completes legal documents remotely
- Receive funds via Direct Deposit in as little as 5 business days
A minimum of 80% of the line must be drawn at closing, and you can continue to make additional draws (minimum $500 each) during the 10-year draw period.
Each draw comes with its own fixed rate, set at the time of the request based on the Prime Rate + margin.
Fees and Costs
- Origination Fee: 1.99% to 3.99% (capitalized into loan amount)
- Broker Price Opinion (if no AVM): $180 (rolled into the loan)
- No prepayment penalties
- Borrowers can choose higher origination fees to lower their APR
Secure and Simple Process
- No in-person visits needed
- Online dashboard to manage draws and view history
- Secure encryption protects your personal and financial data
How Does It Compare to Traditional HELOCs?
| Feature | Traditional HELOC | HELOC for Seniors |
|---|---|---|
| Minimum Age | 18+ | 62+ only |
| Application Process | Often in-person, paperwork-heavy | 100% online, fast and automated |
| Draw Period | Typically 5–10 years | 10 years, with up to 25 draws |
| Monthly Payments | Principal + Interest required | Interest-only required while living in home |
| Funding Timeline | 2–3 weeks or more | As few as 5 business days¹ |
| Appraisal Requirement | Full in-person appraisal usually required | Instant valuation via AVM (no appraisal) |
| Draw Requirement | Flexible | Minimum 80% of credit line drawn at funding |
| Lien Position | Typically 2nd only | 1st or 2nd position allowed |
| Income Verification | Manual, document-heavy | Online income-linking via Plaid/PointServ |
| Spousal Requirements | Varies | Follows state-specific spousal protection laws |
| Reverse Mortgage Compatible | May allow | Not compatible with existing reverse mortgage |
| Tailored to Retirees | No | Yes – designed specifically for homeowners 62+ |
Frequently Asked Questions
What is the difference between an ARLO™ HELOC and a reverse mortgage?
A reverse mortgage enables homeowners aged 62 and above to access their home equity without monthly payments; however, interest accrues over time, reducing the equity. In contrast, the ARLO™ HELOC provides flexible access to funds with interest-only payments while preserving more of your equity—ideal for seniors who want to retain control and avoid FHA insurance costs.
Also See: Reverse Mortgage vs. HELOC and Home Equity Loans: Easier Qualifications and More Flexibility
Can seniors get a HELOC without giving up their low-rate mortgage?
Yes. The ARLO™ HELOC is designed to work alongside your traditional mortgage as a second lien. You can keep your low fixed rate and access extra cash without refinancing your loan term.
Is a senior HELOC better than refinancing or taking out a personal loan?
For many older homeowners, the ARLO™ HELOC offers lower rates than personal loans, faster access to cash, and avoids the high closing costs associated with refinancing. It’s a smarter alternative if you’re looking to borrow against your home equity without having to refinance your mortgage.
What are the age and credit requirements for a HELOC for retirees?
Can I get the ARLO™ HELOC if I already have a reverse mortgage?
Is an appraisal required for the ARLO™ HELOC ?
No in-person appraisal is needed. We utilize an Automated Valuation Model (AVM) to estimate your home’s value instantly.
Do I have to make monthly payments?
Yes, the ARLO™ HELOC requires interest-only monthly payments, unlike a reverse mortgage, which allows you to defer payments. However, there’s no requirement to pay back the principal while living in your home, offering manageable repayment for retirees.
Ready to Tap Into Your Home’s Equity Without Giving Up Your Low Mortgage Rate? If you’re 62 or older, a HELOC for older Americans could be the flexible, low-stress solution you’ve been looking for. Enjoy fast funding, no monthly principal payments, and a fully online process—all designed with retirees in mind. Calculate your benefits now or call us toll-free at (800) 565-1722 to speak with a licensed expert who can walk you through your options.
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