Aven Home Equity Review 2024

About Aven

Aven offers a unique twist for homeowners who want to tap into their home equity. Instead of sticking with a regular home equity loan or home equity line of credit (HELOC), Aven offers eligible homeowners a home equity line of credit through a credit card.

With a HELOC card in hand, you’ll have convenient access to spending with a swipe of your card. Since the credit limit uses your home as collateral, you can potentially tap into significantly lower rates than a traditional credit card. Plus, you’ll even earn 2% cash back on all of the purchases you make with the card.

The ease of use could be a good option for homeowners with significant home equity and a strong credit history. But a one-time 2.5% fee on Cash Outs, which operate more like a traditional home equity loan, might make it an expensive option for homeowners looking for a fixed-rate borrowing option.

Aven offers an unconventional way for homeowners to tap into their home equity. The company’s main offering is a HELOC card, which operates like a credit card that uses your home equity as collateral. Aven also offers Cash Outs, which operate like a traditional home equity loan with repayment terms of five to 10 years.

The table below highlights the details of Aven’s offerings:

Aven’s Offering	Details
Property requirements	-Primary residence -Second homes -Investment properties
Loan amount	-Up to $250,000 in most states -Up to $100,000 limit in AL, AK, AR, ID, IA, KS, LA, NE, NH, NM, ND, OK, OR, SD, and WY
Fees	-No annual, origination or prepayment fees -$29 late payment fee -2.5% one-time fee for Cash Outs to your bank account -2.5% fee for balance transfers
Minimum credit score	-620 FICO score or 640 VantageScore
Repayment schedule	-Minimum monthly payments equal to 1% of the statement balance plus interest -Cash Outs allow fixed monthly payments for a five to 10 year term
Funding speed	-Instant with card payments; new account creation in as little as 15 minutes
APR	-Variable: 7.99% to 15.49%
Loan availability	-Licenses in 44 states and Washington, D.C.

How To Tap Into Your Home Equity With Aven

If you have significant home equity, tapping into those reserves can help you solve a variety of cash flow issues. With Aven, you’ll have two main ways to access your home equity. We take a closer look at both below.

Home Equity Line of Credit Card

Aven’s HELOC card is relatively unique. If approved, the credit card is collateralized by your home equity. The connection to your home equity means you’ll be able to access lower interest rates than you’ll find with regular credit cards. For example, in February 2024, the average credit card interest rate on cards with a balance was 22.63%. However, the Aven home equity line of credit card rates range from a variable 7.99% to 15.49% APR.

If approved, you can start using the card right away anywhere that Visa is accepted. As you make purchases, you’ll earn unlimited 2% cash back, which is redeemable as a statement credit.

Each month, you’ll be expected to make a minimum monthly payment equal to 1% of the principal balance plus any interest or fees you accrued during the statement period. If you enroll in automatic payments, you’ll enjoy a 0.25% interest rate discount.

Notably, Aven itself doesn’t issue this card. Instead, it works with a partner bank, Coastal Community Bank, to issue the Aven card.

Cash Outs

When you have an Aven HELOC card, Cash Outs are also an option. A Cash Out is similar to a traditional home equity loan, through which you can have cash deposited directly into your bank account from Aven. If you choose a Cash Out, you’ll pay a 2.5% fee to finalize the loan. It usually takes around two business days to receive the funds.

Once you’ve received a Cash Out, the fixed interest rate loan involves fixed monthly payments for five or 10 years.

How Much Can You Borrow With Aven?

Eligible homeowners can get a line of credit of up to $250,000 in most states. However, the limit is reduced (up to $100,000) in Alabama, Alaska, Arkansas, Idaho, Iowa, Kansas, Louisiana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota and Wyoming.

If you want a credit line of more than $100,000, you’ll need to add Aven and Coastal Community Bank as beneficiaries on your homeowner’s insurance policy. You’ll also need to provide proof that you have sufficient insurance coverage for the property.

With that said, Aven does set a combined loan-to-value limit of 89%. The company uses an automated system to determine the value of your home. With that, you won’t have to deal with an in-person appraiser to visit your property.

Additionally, you’ll need to have a strong credit score and high enough income to support the loan payments. With that, the amount you can borrow with Aven can vary substantially based on your financial situation.

Who Is the Aven HELOC Card Best For?

Aven offers convenient spending access through a home equity line of credit card. This makes it a good option for homeowners who want to seamlessly access the funds with the swipe of a card. It’s especially useful for homeowners who are in a solid financial position, have significant equity in their home and want easy access to a big line of credit.

You’ll find the card especially valuable if you want to avoid the higher interest rates that are tied to a traditional credit card. If you can comfortably swing the additional payment, then Aven might be the right solution for you.

Who Should Consider an Alternative to the Aven HELOC Card?

Before opening this HELOC card, make sure you are comfortable with the risks. Since this line of credit is collateralized by your home equity, you can likely tap into better interest rates.

However, the catch is that your home is on the line. If you cannot keep up with the payments, you risk losing your home. If you aren’t sure that you can comfortably afford a new monthly payment, Aven’s lending solutions might not be a good fit.

If you don’t have a FICO score of at least 620, it’s also likely that Aven won’t work out for you. Additionally, new homeowners with limited equity might not find the funding they crave with Aven.

Aven Customer Support

According to Aven, applying online should only take around 15 minutes. If you run into questions, either during the approval process or after approval, you can reach out to Aven support. You can email [email protected] or call 415-582-6613.

In general, you should expect a positive experience with the company. Thousands of customers have left 5-star reviews on Trustpilot, leading to a score of 4.9 out of 5 stars. Most reviewers mentioned an easy and straightforward process.

How Does Aven Stack Up to Its Competitors?

Aven isn’t the only company that can help you tap into your home equity. Below is a look at how the competition compares.

Aven vs. Figure

If you like the seamless online application process offered by Aven, you’ll find a similar option in Figure. Like Aven, Figure’s online approval process eliminates in-person appraisals. Figure offers a higher borrowing potential of up to $400,000 if you meet the eligibility requirements.

Figure’s HELOC comes with fixed interest rates and terms of five, 10, 15 or 30 years. If you take out the loan, you’ll face an origination fee of up to 4.99%. Notably, Figure’s HELOC is a hybrid loan. You’ll have to take a lump sum loan upfront. If you want to make additional withdrawals, they must be of at least $500 and within the narrow draw period of two to five years.

Figure might be better for borrowers who have a particular number in mind for their loan and want to lock in a fixed rate. While you can make additional draws, it won’t be as simple as swiping a card.

Aven vs. PNC Bank

PNC Bank offers HELOCs of up to $1 million, which makes it a worthwhile choice for borrowers with a lot of home equity and significant spending plans. But the amount you can borrow is capped at a loan-to-value ratio of 80% to 89.9%, depending on where you live.

This HELOC also lets you switch between variable and fixed interest rates when you borrow, which means you can wait to lock in the lowest market interest rate. But you’ll have to pay a $100 fee to switch from a variable rate to a fixed rate.

One downside is that this HELOC has a $50 annual fee attached. Plus, you’ll face an origination fee of $199 to $499, depending on your line of credit amount.

Aven vs. Navy Federal Credit Union

Navy Federal Credit Union allows eligible borrowers to use up to 95% of their home equity. Depending on your home value, you can borrow between $10,000 and $500,000. The credit union is also light on fees—you won’t pay an application, origination or annual fee.

When you work with this HELOC, you can spend the funds through the Navy Federal Home Equity Line Visa® Platinum Card. You’ll have a 20-year draw period followed by a 20-year repayment period. The borrowed funds come with a variable interest rate attached, currently starting at 8.750% APR.

Since Navy Federal Credit Union only works with veterans, military members, Department of Defense employees and their immediate family members, you might not be able to work with the financial institution. But if you have a qualifying military connection, the relatively low rates and ability to borrow up to 95% of your home equity could make this the right fit.