Spring EQ Home Equity Review

Founded in 2016, Spring EQ is a top-rated lender that provides home purchase, refinance, and equity loans in 39 states and the District of Columbia. It offers original home mortgage and refinance loans, but its primary focus is on helping homeowners access equity through home equity loans and home equity lines of credit (HELOCs). 

If you’re a homeowner looking to tap into your property’s available equity, Spring EQ may be able to help. Read our Spring EQ home equity review to find out which products this fast-growing lender offers and what you need to know before you apply.

In this review:

• How does Spring EQ help me access my home equity?
• Pros and cons of a Spring EQ home equity loan or HELOC
• What do Spring EQ’s customers say about the company?
• Do I qualify for a HELOC or home equity loan from Spring EQ?
• How do I apply with Spring EQ?
• How does Spring EQ determine how much I can borrow?
• What does the appraisal process look like?
• Does Spring EQ charge any fees?
• Does Spring EQ have a customer service team?

How does Spring EQ help me access my home equity?

Your home equity is how much of your home’s value you own. You can calculate it by determining the difference between its market value and what you owe on the property. 

You can borrow against it with the help of a home equity loan or line of credit. These products allow you to withdraw money from your home in cash, which you can use to pay off other debt, cover a home renovation, or finance a considerable expense.

Spring EQ provides homeowners with two home equity options: a HELOC and a home equity loan.

Home equity line of credit

A Spring EQ HELOC gives you access to between $50,000 and $500,000 of your home’s equity in an open line of credit (similar to a credit card) if you borrow against your primary residence or secondary home. 

You can pull from this line of credit as needed during your 10-year draw period, with a minimum initial draw of $50,000 and minimum subsequent draws of at $1,000. You’ll make draws via checks, which the lender provides right after you close. If you don’t touch any of the money, you won’t have anything to repay.

During the draw period, the lender requires interest-only payments, with a minimum monthly payment of $100 once you draw from your line of credit. When your draw period ends, you’ll enter a 20-year repayment term during which you cannot borrow any more. You’ll then make payments of principal plus interest.

	Spring EQ HELOC Terms
Rates (APR)	Not disclosed
Rate discounts	Not disclosed
Loan amounts	$50,000 to $500,000 ($50,000 minimum initial draw; $1,000 minimum on subsequent draws)
Draw period	10 years
Repayment period	20 years
Maximum LTV	95%
Minimum credit score	620
Minimum income	Not disclosed
Fees	Yes, but not disclosed

Home equity loan

With a Spring EQ home equity loan, you can borrow a lump sum between $25,000 and $500,000 against your home’s equity, up to a maximum loan-to-value ratio (LTV) of 95%. You’ll have five to 30 years to repay the loan at a fixed interest rate, with a set monthly payment.

You can take out a Spring EQ home equity loan on primary owner-occupied homes, secondary homes, and (unlike a HELOC) investment properties. Your maximum allowed LTV—the most you can borrow from your home’s equity—will vary depending on the property type and your FICO credit score.

	Spring EQ Home Equity Loan Terms
Rates (APR)	Not disclosed
Rate discounts	Not disclosed
Loan amounts	$25,000 to $500,000
Repayment period	5 to 30 years
Maximum LTV	95%
Minimum credit score	620
Minimum income	Not disclosed
Fees	Yes, but not disclosed

Pros and cons of a Spring EQ home equity loan or HELOC

Pros

• Loans can be funded as quickly as 11 days (21 days on average)

• Borrow up to 95% LTV

• Home equity loans are available on owner-occupied, secondary, and investment properties

• Minimum FICO credit score requirement of 620 is lower than many other lenders

Cons

• Not licensed in Alaska, Hawaii, Idaho, Massachusetts, Missouri, North Dakota, New York, South Dakota, West Virginia, or Wyoming

• HELOCs have a $100 minimum payment on borrowed funds, regardless of your balance

• No option to adjust due date—payments are due on the 1st of each month

If you’re unsure whether Spring EQ is the right fit for your home equity needs, consider other institutions. Check out our guide to the best home equity loans for more recommendations.

What do Spring EQ’s customers say about the company?

Consumer reviews can help you see how a company treats its customers. Online reviews for Spring EQ are limited—the company has only been around since 2016—but its consumer rating through the Better Business Bureau (BBB) is an excellent 4.56 out of 5, with 247 reviews as of October 2022.

The company is BBB-accredited and rates an A+. 

Consumers say Spring EQ’s team is “top notch,” “very responsive to questions,” and that working with its representatives was a great experience from application to closing.

Do I qualify for a HELOC or home equity loan from Spring EQ?

To qualify for a home equity loan or HELOC through Spring EQ, you’ll need to meet certain home equity, income, credit score, debt-to-income (DTI), and property requirements.

To start, Spring EQ only offers HELOCs on primary owner-occupied homes and secondary homes. It offers fixed-rate home equity loans on primary homes, secondary homes, and investment properties, though your maximum LTV may vary. 

You need enough equity in the property to qualify for a minimum home equity loan of $25,000 and a minimum HELOC of $50,000, while meeting Spring EQ’s LTV requirements. Depending on your credit, location, and property, the required equity can differ. 

To borrow from Spring EQ, you need to own property in one of the states it services. As of this writing, it offers home equity loans and lines of credit in 40 states and the District of Columbia. 

Excluded states are:

• Alaska
• Hawaii
• Idaho
• Massachusetts
• Missouri
• North Dakota
• New York
• South Dakota
• West Virginia
• Wyoming

Minimum FICO credit score requirements are:

• 680 for a HELOC 
• 620 for a home equity loan 

You’ll also need to meet the lender’s DTI limits for home equity loans and HELOCs. This ratio, which compares your existing debt obligations to your monthly income, is capped at 45% for Spring EQ borrowers.

While you can apply online, Spring EQ does not offer preapproval with a “soft” credit check. It will “prequalify” you based on the basic information you provide about your home’s value and location, but this won’t include interest rates. You’ll need to apply to find out whether you qualify for a home equity loan and at what interest rates. 

How do I apply with Spring EQ?

You can apply for a home equity loan or HELOC through Spring EQ online by answering a few questions about your home and financial situation. You’ll see your results right away and can move forward with finalizing your new loan.

Here are the eight steps to apply with Spring EQ:

1. Visit Spring EQ’s online application form. Here, you’ll need to enter your name, address, phone number, email address, and date of birth, and choose whether the property is your primary address.
2. Answer questions about your property. Provide your property’s current value and your remaining mortgage loan balance, and answer whether you have other liens on the property (a second mortgage, for instance).
3. Decide how much you need to borrow. Based on the equity you have in your home, tell Spring EQ how much cash you’d like to borrow. 
4. Answer the following questions about your financial history: Have you ever declared bankruptcy or faced home foreclosure? How do you use the home, and what type of property is it? What is your credit score? Do you have a co-borrower? Are you a veteran?
5. Get a “pre-qualified” loan amount. Once you submit this information, Spring EQ will tell you how much home equity you can borrow. However, please note this is based on your property’s stated value and the amount you want to borrow. Spring EQ hasn’t checked your credit, and you won’t get any proposed interest rates.
6. Decide whether to finish applying or wait for a representative to reach out. At this point, you can either wait for one of Spring EQ’s loan specialists to reach out to you, or you can move forward with the online application. You’ll need to confirm your email address to move forward with the latter.
7. Apply online. If you choose to apply now, Spring EQ will pull your credit, and you’ll get a clearer idea of the interest rates and loan amounts the lender will offer, as well as your repayment term options (for home equity loans). You can select your preferred loan at that time and begin finalizing. 
8. Provide the necessary documents. Before finalizing your loan, the lender will request documentation such as your mortgage statement, a copy of your photo ID, proof of income, proof of assets, and a copy of your home insurance coverage.

How does Spring EQ determine how much I can borrow?

Spring EQ allows homeowners to borrow up to 95% of their LTV. However, whether you can borrow the full 95% depends on several factors, including:

• Current home equity: You can borrow up to 95% for a maximum of $500,000. 
  • Home equity loan: Minimum loan amount is $25,000
  • HELOC: Initial draw needs to be at least $50,000.
• Home use: Is it your primary home, a secondary home, or an investment property?
• Credit score: A lower credit score may result in a lower allowed LTV.
• Location: Borrowers in some states may have other home equity loan/HELOC limits.

What does the appraisal process look like?

Whether you’ll need a new appraisal depends on how long you’ve owned your home and the date of your last home appraisal report.

In some cases, you may be able to use a home appraisal from the previous 12 months for a new home equity loan or line of credit. Expect to pay a $115 fee for Spring EQ to analyze a previous home appraisal report.

If you need a new home appraisal, the cost will depend on your home equity loan size and, in some cases, your debt-to-income ratio (DTI). Loans of $175,000 or less may be eligible for a “drive-by inspection,” where an appraiser checks the property’s exterior. The fee for this type of appraisal is $149. 

Loans over $175,000 will likely need a full interior appraisal. The cost varies by location, the size of your home, and its layout. The broker will order the appraisal, but as the borrower, you will be responsible for the cost.

Does Spring EQ charge any fees?

Whether you’re taking out a home equity loan or HELOC, Spring EQ charges several administrative fees, including a loan setup administration fee and an annual fee on HELOCs. 

If you need a new appraisal, the cost starts at $149. The prior-use appraisal fee is $115. 

You should also expect to pay credit check and document prep fees.

Does Spring EQ have a customer service team?

If you have questions about a new or existing home equity loan or HELOC through Spring EQ, you can contact the customer service department:

• By phone at 888-978-9978
• By email (current customers only) at [email protected]

Spring EQ does not offer live chat options.