Gershman Mortgage, Truss Financial Group launch separate HELOC offerings

As millions of homeowners remain locked into low mortgage rates, lenders are introducing new home equity products designed to help borrowers access accumulated equity without refinancing their first mortgages.

This week, Gershman Mortgage and Truss Financial Group announced separate home equity offerings aimed at different borrower segments but built around the same premise: allowing homeowners to tap equity while preserving existing first-lien mortgage rates.

The product launches come as many borrowers carry mortgages originated at rates of 3% or 4%, leaving refinancing to be less attractive despite record equity gains and therefore prompting lenders to expand home equity lending options.

Gershman Mortgage introduced a standalone “5-Day HELOC” for owner-occupied homeowners. The product allows qualified borrowers to access up to $750,000 through a home equity line of credit with repayment terms of 10, 15, 20 or 30 years.

The lender said borrowers can begin the application process without a hard credit inquiry and may close in as few as five business days.

“Plenty of homeowners have built up real equity, and a lot of them don’t want to touch their first mortgage to use it,” Jeff Ogden, senior vice president of production at Gershman Mortgage, said in a statement. “This HELOC gives them a way to quickly tap that equity for renovations, tuition, paying down credit cards or whatever they need.”

Separately, Truss Financial Group launched a debt service coverage ratio (DSCR) home equity line of credit (HELOC) tailored to residential real estate investors. The product allows borrowers to access up to $1 million in equity across investment properties without verifying personal income or replacing existing first mortgages.

Rather than underwriting loans based on a borrower’s personal debt-to-income ratio, the Truss product evaluates the cash flow generated by the rental property. The company said the program is available on non-owner-occupied one- to four-unit properties, condominiums and planned unit developments, with borrowers eligible for financing based on rental income and, in some cases, asset depletion calculations.

Truss said the revolving line of credit is intended to help investors fund property renovations, acquisitions and other expenses while avoiding cash-out refinances that would require replacing lower-rate first mortgages.

“Innovation is about removing friction between an entrepreneur’s vision and their earned capital,” Jeff Miller, CEO and founder of Truss Financial Group, said in a statement. “In this rebalancing market, home equity should not be a static number; it must be an active tool for growth.”

Both lenders said their products can close in as few as five business days. While Gershman’s offering targets homeowners seeking funds for renovations, debt consolidation or other personal expenses, Truss is focusing on investors looking to leverage equity to expand or improve rental property portfolios without disrupting existing financing.

This article was written by Sarah Wolak and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.