Using a HELOC for Home Improvement: Draw Period and Line Reuse Matter

Home improvement is one of the most common uses for a HELOC — and the draw period matters more than almost any other structural feature for this purpose. A renovation that unfolds over two or three years needs a line you can draw from repeatedly, not one that closes after a single draw.

Draw Period Is the Key Variable for Phased Renovations

A five-year draw period gives you five years to draw, repay, and redraw from the line. A three-year draw period gives you three years. If your renovation is phased — foundation work this year, kitchen next year, bathrooms the year after — a longer draw period provides more flexibility. NFTYDoor has a three-year draw period. HELIX, Aven, and Deephaven have five-year draw periods. Figure's draw period scales with the loan term: three years on a 10-year product, four years on 15- and 20-year products, five years on a 30-year product.

Initial Draw Requirements and Renovation Timing

Aven and Figure require a 100% initial draw — you draw the full line at closing. This means you're paying interest on the full amount from day one, even if you don't need all the funds immediately. For phased renovations, this can be a meaningful cost. NFTYDoor and HELIX require a 75% initial draw, and Deephaven requires 80%. If you only need funds in stages, a lower initial draw requirement reduces the interest cost during early phases.

Interest-Only Payments During Construction

NFTYDoor, HELIX, and Deephaven use interest-only payments during the draw period. This keeps required payments lower during the renovation phase — useful when you're also paying for contractors and materials. Aven and Figure use amortizing payments from the start, which means higher required payments but faster principal reduction.

A Practical Example

A borrower financing a $150,000 kitchen and bathroom renovation over two years may care more about having five years of reusable line access than about a modest initial pricing difference. If the renovation takes 18 months and the draw period is only three years, there's still 18 months of reuse available. If the draw period is five years, there's 3.5 years of reuse available after the renovation is complete — useful for future projects or unexpected expenses.

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Program information last reviewed: August 2026

HELOC guidelines change frequently. Program availability and qualification may change without notice. This information is educational and is not a loan approval, commitment or guarantee.