ARLO™ HELOC: The Alternative to a Reverse Mortgage

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?

The ARLO HELOC is a home equity line of credit built for homeowners age 62 or older. It works in a first or second lien position and lets you draw funds as needed, repay only the interest while you live in the home, and keep your existing mortgage without touching the rate or term.

The balance is typically repaid when the home is sold or when you no longer meet the loan terms (such as moving out).

Program Highlights

Borrow $50,000 to $400,000, depending on home value, lien position, credit, income, and equity
Interest-only payments while you live in the home
Minimum 80% draw required at closing
Up to 25 total draws during the 10-year draw period
Soft credit pull for prequalification, hard pull only when you decide to proceed
Fast funding—as little as five business days
AVM valuation only (no in-person appraisal)
0.25% autopay rate discount available
No prepayment penalties
Available in 1st or 2nd lien position
100% online application and remote notary where permitted

ARLO HELOC – 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
Interest-only payments help keep monthly costs predictable
No appraisal required—value determined instantly with an AVM
Quick prequalification with a soft credit pull
Borrow for home improvements, medical costs, debt consolidation, or in-home care
Pay off anytime without penalties
No condominium questionnaire required
Up to 25 draws during the 10-year draw period
Secure online dashboard for managing your line and viewing your history

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

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%–3.99%
Rate discount: 0.25% with autopay enrollment
Broker Price Opinion: $180 if an AVM cannot be used
No prepayment penalties
Closing costs can be rolled into the loan

Borrowers may choose a higher origination fee to obtain a lower APR.

Property Requirements

Eligible properties include:

Single-family homes
Townhomes
Condos (no condo questionnaire required)
PUDs
Duplexes

Not eligible:

Homes listed for sale
3–4 unit properties
Manufactured homes
Co-ops
Timeshares, log homes, houseboats
Commercial or mixed-use
Properties larger than 20 acres
Properties owned by land trusts
Leasehold/ground lease properties
Properties with an existing reverse mortgage
Homes purchased within the past 90 days (90-day seasoning required)

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 the ARLO HELOC Compares to Traditional HELOCs

Feature	Traditional HELOC	ARLO™ HELOC
Minimum Age	18+	62+
Appraisal	Full appraisal required	AVM, no appraisal
Payments	Principal + interest	Interest-only
Draw Period	5–10 years	10 years, up to 25 draws
Application	Often in-person	100% online
Funding	2–3+ weeks	As fast as 5 days¹
Minimum Draw	None	80% required at closing
Lien Position	Typically 2nd	1st or 2nd
Reverse Mortgage Compatible	Sometimes	Never
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?

To qualify for the ARLO™ HELOC, you must be 62 years or older, have a minimum credit score of 660, and maintain a combined loan-to-value (CLTV) ratio of 75% or less. No income-heavy documentation or in-person appraisal is needed.

Can I get the ARLO™ HELOC if I already have a reverse mortgage?

No. If you currently have a reverse mortgage, you cannot take out an additional HELOC on the same property. You must first pay off the reverse mortgage to be eligible.

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.

Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 20 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

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