Home to Las Vegas, Nevada is one of the most sought after states in the U.S. Despite the fact that only two and a half million people live here year round, millions of people travel to Nevada each year because of its tourist spots and luxuries. The average home in Nevada is valued at $250,000. Current appreciation values have gone up over the past few years with most homes in the Ely and Battle Mountain areas increasing in their worth. While homeowners are building valuable equity in their properties, it’s no wonder that HELOCs have become a common financial fallback for so many.

What Exactly is a HELOC?

A HELOC is a home equity line of credit used the same way you would use any credit card. Unlike a typical credit card that’s tied into a bank and linked to your FICO score, your HELOC is directly funded on the equity you’ve established in your property. In short, your home is used as collateral so that the bank has something to take if they experience losses due to a delinquent account. While this can sound scary to some who aren’t necessarily ready to put their home on the line for a credit card, it’s an advantageous and highly responsible ways of taking out a credit line.

What are the Advantages of Taking Out a HELOC?

The most obvious benefit you’ll find when opening a HELOC account is the amount you’re able to borrow. Typical credit cards often have a limit of about $15,000 to $20,000 if you’re lucky and have an excellent credit score. A HELOC, on the other hand, has a draw limit of 85 percent of what your home is worth. This means that you could have a credit line worth hundreds of thousands of dollars and have full access to this money at virtually any time. Also, your credit score is not necessarily a deciding factor when being approved for a new home equity line of credit. Banks want to know more about your home and its value as opposed to where your FICO score lies.

The Fine Print Before Applying

Like many other financial options, there are some issues with HELOC accounts, too. Your home is being put on the line so that you have access to more money. If your account should become delinquent or you have issues paying back the amount you owe, the bank can take possession of your home. The majority of HELOCs have variable interest rates, which is a good thing when rates in your area are low and a bad thing when they skyrocket to a ridiculous amount.

The Application Process

You’ll find that applying for a HELOC is similar to any other credit card you’ve applied for in the past. The only difference is that the bank needs additional information regarding your home, its value and the length of time you’ve been the owner. Most HELOC accounts won’t be approved unless you’ve been the owner for at least 10 years and have paid at least 20 percent of what the home has been assessed at in mortgage payments. While most banks won’t put a huge emphasis on your credit score, you should ideally have a good score to be quickly approved for a HELOC with a decent rate.

Finding a Bank in Nevada

Below is a list of some of the best banks in Nevada offering home equity line of credit accounts:

• Nevada State Bank
• Wells Fargo
• United Nations Bank
• Eastman
• Citibank