When assessing a client's eligibility for a Home Equity Line of Credit (HELOC), which of the following is typically a crucial factor?

Question: When assessing a client's eligibility for a Home Equity Line of Credit (HELOC), which of the following is typically a crucial factor?

Answer options:

• The borrower's age must be over 65 years old.
• The property must be a rental unit, not owner-occupied. ✅ The amount of equity built up in their home.
• The client must have no other existing debts.

Correct answer: The amount of equity built up in their home.

Explanation: Eligibility for a HELOC is primarily determined by the amount of equity the homeowner has in their property, as the line of credit is secured against this equity. Lenders will also consider income and creditworthiness.