Aven: 2024 Home Equity Review

Benefits

• No annual, origination, appraisal, notary or pre-payment fees. 
• You can be approved in as fast as 15 minutes. 
• Can qualify with 12% home equity (vs. the usual 15-20%).

Drawbacks

• Must draw at least $50,000 within three months of opening (for credit lines above $100,000).
• Aven charges a 2.5 percent fee on balance transfers and cash-outs. 
• Not available in all states. Line of credit size limited in 15 states.

Home equity loan products offered

Aven isn’t a typical home equity line of credit (HELOC) or loan; it’s a credit card that leverages your home’s equity while rewarding you with cash refunds. You’ll get a line of credit based on your tappable equity, like a HELOC, and receive unlimited 2 percent cash back on purchases, like a cash back credit card.

The card is a Visa card and backed by Coastal Community Bank, an FDIC-insured institution. Along with individual purchases, you can use the Aven HELOC card to cash out your home equity in large amounts, with the funds going directly into your designated bank account. You have the option to repay the funds in fixed installments over five or 10 years, similar to a home equity loan (“Aven Simple Loan”).

However, you can’t use the Aven card to withdraw cash at an ATM or bank.
Note: Although the offering functions like a credit card, Aven reports its product as a HELOC to the credit bureaus and it’ll appear as such on your credit report. So, similar to a HELOC, you might be able to deduct the interest if you use the funds on home improvements. 

The card has built-in safeguards, including alerts whenever you make a purchase. For added security, your app will ask for approval for larger purchases.

The interest rate on the Aven HELOC card is variable, meaning it adjusts as market rates change. If you qualify, you could get a credit line of up to $250,000 (or up to $100,000 if you’re in Alabama, Alaska, Arkansas, Idaho, Iowa, Kansas, Louisiana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota or Wyoming).

If your line is for more than $100,000, you’ll need to draw at least $50,000 within three months of opening. Otherwise, Aven might lower it. There isn’t a minimum draw requirement for lines under $100,000.

You’ll make payments similar to the process on a regular credit card. The minimum monthly payments are calculated as 1 percent of the principal balance plus monthly interest and fees.

You’ll need to enroll in auto-pay to receive cash back rewards. (If you enroll, you’ll also receive a 0.25 rate discount.) However, you can’t apply the cash to your minimum payment; you can only redeem it for an additional statement credit once the minimum payment has been satisfied.

Types of fees charged 

Aside from variable-rate interest, the Aven HELOC card comes with some fees. If you cash out and enroll in the fixed repayment plan, you’ll pay a one-time fee of either 2 percent, 2.5 percent or 4.9 percent, depending on your card agreement. The same fee structure applies to balance transfers.

You’ll pay $29 for any late payments, but you won’t pay an origination fee, appraisal fees, annual fees or a prepayment penalty.

How to qualify for a HELOC card with Aven

To be eligible for an Aven HELOC card, you’ll need to have at least 12 percent equity in your home and a FICO and Vantage credit score of at least 640. You can get the card with equity tied to either a primary residence, second home or investment property, but the designated property can only have one mortgage attached to it at the time you apply.

If you obtain a credit line higher than $100,000, you’ll also need to add Aven and Coastal Community Bank as beneficiaries on your homeowners insurance policy.

Checking just to see if you qualify for the card will not affect your credit score.

How to apply with Aven 

You can apply for an Aven HELOC card on Aven’s website. The application process typically takes just 15 minutes, according to the website.

How Bankrate scored Aven

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10%
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.