First, Second & Third Lien HELOCs
Lien position describes where your HELOC sits in the priority order of claims against your property. It affects your rate, your eligibility, and which programs are available to you.
First Lien
A first-lien HELOC replaces your existing mortgage as the primary lien on the property — or is the only lien if you own free and clear. First-lien HELOCs typically allow higher CLTVs and may carry lower rates than second-lien products because the lender has priority claim in a foreclosure. All five digital programs offer first-lien HELOCs.
Second Lien
A second-lien HELOC sits behind your existing first mortgage. This is the most common structure for homeowners who want to access equity without refinancing their first mortgage. All five digital programs offer second-lien HELOCs. Maximum CLTV is typically lower for second-lien positions than first-lien.
Third Lien
A third-lien HELOC sits behind both a first and second mortgage. This is uncommon and only available through select programs. Currently, Figure offers third-lien HELOCs in qualifying owner-occupied situations (approximately 680+ credit, approximately 70% CLTV). No other program in this comparison currently offers third-lien execution.
How Lien Position Affects CLTV
Maximum CLTV limits often differ by lien position within the same program. A program may allow 90% CLTV on a first-lien owner-occupied property but only 80% on a second-lien. Always confirm the CLTV limit for your specific lien position.
Third-lien availability is limited and subject to strict underwriting. If you have both a first mortgage and a home equity loan or HELOC already in place, discuss your options with a mortgage professional before assuming a third-lien product is available.
HELOC guidelines change frequently. This content is educational and is not a loan approval, commitment or guarantee.