Together with BBVA U.S.A., Prosper has created a Home Equity Line of Credit (HELOC) solution that enables borrowers to apply for a HELOC and receive pre-qualification in minutes. The offering, hosted on Prosper’s website, offers competitive rates and does not charge origination fees.
“We are thrilled to have a partner like BBVA that believes, as we do, in the power of technology to improve efficiency and deliver a great customer experience,” said Prosper CEO David Kimball. “Working closely with BBVA, we’re excited to be able to offer our customers the opportunity to quickly and easily apply for a HELOC online, which can be a smart and affordable financing option for things like home improvement and debt consolidation.”
In addition to being hosted on Prosper’s website, there will also be a BBVA-branded version of the HELOC. BBVA is making that version available to a select number of its own customers.
This news comes after Prosper teased the launch of a HELOC product in late 2018. The HELOC is available to Prosper customers in Alabama, Arizona, Florida, and Texas, and will roll out to additional states “in the coming months.”
“We look forward to expanding this product offering to more states and continuously improving the experience,” Kimball added.
According to Prosper, available home equity is at an all-time high, reaching $6.3 trillion in the second quarter of this year. Despite that figure, 2019 brought a drop in HELOC popularity because of high interest rates. However, with the Federal Reserve’s recent trend of lowering the interest rate, today’s launch may be timed perfectly.