A Home Line of Credit loan, often abbreviated as HELOC (Home Equity Line of Credit), is a flexible borrowing option secured by the equity in one's home. It functions similarly to a credit card, where borrowers are given a line of credit they can draw from as needed, up to a predetermined limit. The equity in the home serves as collateral for the loan.

Borrowers can access funds through checks, online transfers, or a special credit card linked to the HELOC. Interest is typically variable and only accrues on the amount borrowed, offering flexibility and potentially lower initial costs compared to traditional loans. HELOCs are commonly used for home renovations, debt consolidation, or other major expenses, offering homeowners a convenient way to tap into their home's equity while retaining the ability to repay and redraw funds over time.