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Spring EQ Mortgage Review 2022

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Spring EQ is a Philadelphia-based non-bank lender that specializes in home equity loan products for new home purchases and refinances. The company was founded in 2016 and is now licensed to lend in 39 states. You can apply for a loan directly through Spring EQ’s online application or through an approved mortgage broker.

Who is this lender for?
  • Homeowners looking to tap more equity than most home equity lenders allow
  • Borrowers interested in a cash-out refinance
  • Borrowers looking for a bridge loan

Spring EQ pros and cons

Pros

  Fast mortgage prequalification. A short online form will yield you an instant decision on whether you prequalify for a mortgage.

  Quick closing times. Spring EQ’s website advertises the ability get home equity cash in as few as 11 days, much faster than the industry standard of around 40 to 50 days.

  Access to high percentage of home equity. Spring EQ allows home equity loan borrowers to tap up to 97.5% of their property’s value. Most lenders only allow you to access a maximum of 85%, less the amount you still owe on your home.

Cons

  No manufactured homes. Spring EQ doesn’t allow financing on manufactured homes.

  Not available in all states. Spring EQ currently doesn’t lend in 10 states, including West Virginia, Idaho, North and South Dakota, Wyoming, Alaska, Hawaii, Missouri, New York and Massachusetts. 

Spring EQ borrowing requirements

Minimum credit score640
Minimum credit score 
  • 640
Minimum down payment 
  • 2.5%*
Available loan terms 
  • 5-, 10-, 15-, 20-, 25- and 30-year fixed-rate second lien home equity options
  • 30-year variable-rate home equity lines of credit (HELOCs)
Available loan types 
  • Fixed-rate home equity loan
  • HELOCs
  • Bridge loan HELOC

*Down payment minimum may vary if you combine a standard first mortgage program with a home equity product

Spring EQ mortgage rates and fees

Spring EQ doesn’t disclose its mortgage rates or fees online. You’ll need to contact a loan officer to find out the fees and closing costs you could face.

Spring EQ mortgage products

Purchase and refinance home equity products

Buyers can choose a fixed-rate home equity loan term ranging from five to 30 years for loan amounts between $25,000 and $500,000. You’ll need at least a 740 credit score if you want to borrow up to 97.5% of your home’s value. Borrowers with credit scores as low as 640 may qualify for a Spring EQ home equity loan up to 85% of their home’s value. 

Borrowers that prefer the flexibility of a home equity line of credit (HELOC) can tap up to 97.5% of their home’s equity and make interest-only payments for the first 10 years of a 30-year term. Lines are available for loan amounts between $50,000 and $500,000. Your credit score must be at least 740 to borrow more than 95% of your home’s value, and is capped at 85% with a score down to 640.

Spring EQ offers both “standalone” and “piggyback” mortgage options for borrowers looking to buy a home and avoid mortgage insurance. The standalone option just means you can take out a home equity loan or HELOC without being approved for a first mortgage at the same time.

The piggyback loan involves taking out a conventional first mortgage at 80% of the home’s price and “piggybacking” a Spring EQ home equity loan or HELOC up to 97.5% of your home’s price. The benefit: You won’t pay any mortgage insurance, which is usually required with less than a 20% down payment to protect the lender in case you default on your mortgage. 

Spring EQ home equity loans and HELOCs can also be used for cash-out refinance transactions to borrow up to 97.5% of your home’s value, which is great news considering most home equity loans limit you to tapping 80% of your home’s value. That’s even higher than the cash-out refinance maximum for a loan backed by the U.S. Department of Veterans Affairs (VA), which caps you at 90% of your home’s value.

Special home equity products

If you’re trying to buy a new home but haven’t sold your old one and are short on down payment funds, a Spring EQ bridge HELOC may be a good option. This interest-only, fixed-rate loan allows you to borrow between $75,000 and $500,000 of your home’s value while it’s for sale (up to 11 months), and use the funds toward the purchase of your new home. Once your home sells, you can pay off the bridge loan balance.

How does Spring EQ compare to other lenders?

Spring EQSoFiTruist
Mutual of Omaha Mortgage
  • 640
  • 620
620
Minimum down payment 
  • 2.5%
  • 5%
  • 0% (VA, USDA)
  • 3% (Conventional)
  • 3.5% (FHA)
Special programs offered 
  • Bridge HELOC
  • None
  • Doctor loans
  • Fannie Mae Home Ready
  • Freddie Mac Home Possible
  • Community Homeownership Incentive program (CHIP)
  • Rural development
Lender ReviewSoFiTruist
Loan products and types 
  • Home equity loan
  • Home equity line of credit (HELOC)
  • Conventional
  • Home equity
  • Investment property
  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo

 

Today's Mortgage Rates

  • 5.95%
  • 5.76%
  • 3.31%
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