HELOC Initial Draw Requirements
Some HELOC programs require you to take a significant portion of your approved line at closing. Others let you draw as little or as much as you need. This requirement affects your immediate interest cost and flexibility.
What Is an Initial Draw Requirement?
An initial draw requirement means you must borrow a minimum amount at closing — even if you don't need it yet. You begin paying interest on that amount immediately. Programs with 100% initial draw requirements are essentially term loans with a revolving feature, not true revolving lines from day one.
Initial Draw by Program
| Program | Initial Draw Required | Note |
|---|---|---|
| Aven | 100% of approved line | Full line drawn at closing. Fully amortizing from day one. |
| Figure | 100% of approved line | Full line drawn at closing. Fully amortizing from day one. |
| NFTYDoor | 75% of approved line | 25% remains available to draw during the 3-year draw period. |
| REMN HELIX | 75% of approved line | 25% remains available to draw during the 5-year draw period. |
| Deephaven | 80% of approved line (minimum $50,000) | 20% remains available to draw during the 5-year draw period. |
Why This Matters
If you need $50,000 but your approved line is $200,000, a 100% initial draw requirement means you borrow $200,000 at closing and begin paying interest on the full amount. A 75% requirement means you borrow $150,000 at closing. The difference in immediate interest cost can be significant — and affects your DTI calculation during underwriting.
HELOC guidelines change frequently. This content is educational and is not a loan approval, commitment or guarantee.