What is required for a home equity line of credit regarding a loan estimate?

For a home equity line of credit (HELOC), a loan estimate is not required. This is because the loan estimate requirements established under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) specifically pertain to closed-end mortgage loans. HELOCs are considered open-end credit, which function differently from traditional mortgage loans.

It’s important to note that while a loan estimate is not mandated for HELOCs, lenders are still required to provide certain disclosures, including a notice of the right to cancel, and they must comply with other specific regulatory requirements associated with open-end mortgages. This distinction helps clarify why a loan estimate specifically does not apply to home equity lines of credit.