HELOC on Inherited Property: A Complete Guide

Last updated: February 2026

You've inherited a property. Now you want to access its equity through a HELOC.

It's possible—but there's a critical requirement: clear title in your name.

Here's everything you need to know about getting a HELOC on inherited property, including probate timelines, multiple heir situations, and what to do if you inherited a house that already has debt.

---

Can You Get a HELOC on Inherited Property?

Yes, but only after:

1. Probate or estate settlement is complete
2. The title has been transferred to your name
3. You meet standard HELOC requirements (equity, credit, income)

The key word is "after." You can't get a HELOC on property you don't legally own yet—and until probate closes and the title transfers, you don't own it.

---

The #1 Requirement: Clear Title

This is non-negotiable.

A "clear title" means:

• No competing ownership claims
• No outstanding liens (or liens have been resolved)
• Property is legally registered in your name
• Estate has been properly settled through probate or trust distribution

Why lenders require this:

A HELOC is secured by the property. If there's any question about ownership, the lender's collateral is at risk. They won't lend against uncertain ownership.

How to verify clear title:

• Obtain a copy of the recorded deed showing your name
• Run a title search (or have a title company do this)
• Resolve any outstanding liens or claims before applying

---

The Probate Timeline

If the property wasn't in a trust, it likely needs to go through probate—the legal process of settling an estate.

Typical probate timeline: 6-18 months

Contested estates take longer. If heirs disagree or creditors challenge claims, probate can stretch to 2+ years.

During probate, you cannot:

• Get a traditional HELOC on the property
• Sell the property (without court approval)
• Take any action that requires clear title

---

Step-by-Step: From Inheritance to HELOC

Here's the path forward:

Step 1: Complete Probate or Estate Settlement

Work with the estate executor (or become one if needed). Ensure all estate debts are paid and the probate court approves distribution.

If the property was in a living trust, the process is simpler—the trustee can transfer the property without probate.

Step 2: Transfer Title to Your Name

After probate closes, file a new deed transferring ownership. This typically requires:

• Executor's deed or personal representative's deed
• Recording with your county recorder's office
• Title insurance (recommended)

Step 3: Get the Property Appraised

You'll need to know the current market value to determine available equity. Some lenders handle appraisal as part of the HELOC process; others require it upfront.

Step 4: Calculate Your Available Equity

Most lenders allow you to borrow up to 80-85% of your home's value, minus any existing mortgages.

Example:

• Inherited property value: $500,000
• Existing mortgage: $0 (paid off)
• Maximum HELOC at 80% LTV: $400,000

If you inherited a property with no mortgage, you may have significant equity available.

Step 5: Apply for the HELOC

With clear title in hand, apply like any other HELOC. You'll need:

• Proof of ownership (recorded deed)
• Income documentation
• Credit score (typically 680+)
• Property appraisal

---

Multiple Heirs: Getting Everyone on Board

Inherited property often goes to multiple people. Here's how that affects HELOC eligibility:

All heirs must agree for any financing on jointly inherited property.

But not all heirs need to co-sign. The agreement structure depends on how title is held:

• Tenants in common: Each owner has a percentage. All must agree to encumber the property.
• Joint tenants with right of survivorship: Similar—all must agree.

What if there's disagreement?

Options include:

• One heir buys out the others
• Property is sold and proceeds divided
• Partition action (court-ordered sale)—expensive and contentious

Lenders won't touch a property with unresolved heir disputes.

---

Inherited a House WITH a HELOC?

If the deceased had an existing HELOC on the property, you inherit that debt.

Your options:

Option 1: Pay It Off

Use estate funds or your own resources to pay off the existing HELOC balance. Then you have clear equity for a new HELOC.

Option 2: Assume the HELOC

Some lenders allow heirs to assume the existing HELOC. You take over the payments under the existing terms. Contact the lender directly to ask about assumption policies.

Option 3: Refinance

Replace the existing HELOC with a new one in your name. This works if you have good credit and sufficient income.

Option 4: Sell the Property

If the debt is unmanageable, selling may be the cleanest option. Pay off the HELOC from sale proceeds.

Important: HELOC contracts often have "due-on-sale" or "due-on-transfer" clauses. The lender may demand full repayment when ownership transfers. Check the original loan documents.

---

Can't Wait for Probate? Alternatives

If you need cash before probate closes:

Probate Loans (Estate Loans)

Specialty lenders offer loans against inheritance before probate completes.

Pros:

• Access funds in weeks, not months
• No credit check (loan is against the estate)

Cons:

• Higher interest rates (often 10-15%+)
• Fees can be substantial
• You're borrowing against your future inheritance

Estate Advances (Inheritance Advances)

Similar to probate loans, but structured as a purchase of your inheritance rights rather than a loan.

Pros:

• Fast access to funds
• No monthly payments (settled at estate distribution)

Cons:

• You get less than the full inheritance value
• Can be expensive

Waiting

Often the best financial move. Probate delays are frustrating, but probate loans and advances are expensive. If you can wait for clear title, you'll access better rates through a traditional HELOC.

---

Special Situations

Property Was in a Trust

Trust-held property avoids probate. The successor trustee can transfer property to beneficiaries relatively quickly (weeks, not months).

You can get a HELOC on trust property, but:

• The trust may need to be the borrower (trust loan)
• Or the property may need to transfer out of the trust to your name first

Work with the lender and estate attorney to determine the best approach.

Property in Another State

Inherited property in a different state requires probate in that state (called "ancillary probate"). This adds time and complexity. Factor that into your timeline expectations.

Property Needs Significant Repairs

Appraisers value property "as-is." If the inherited home needs work, its current value may be lower than you expect—affecting available equity.

Consider whether repairs before appraisal would increase value enough to justify the investment.

---

The Bottom Line

Getting a HELOC on inherited property is straightforward once you have clear title. The challenge is the wait.

Your checklist:

• Complete probate or trust distribution
• Transfer title to your name
• Resolve any multiple-heir ownership questions
• Address any existing debt on the property
• Meet standard HELOC requirements (credit, income, equity)

With patience and proper documentation, you can access your inherited property's equity.

---

Ready to Move Forward?

Once your title is clear, HonestCasa can help you access your inherited property's equity quickly and transparently. Check your options with no impact to your credit score.

[Explore Your HELOC Options →]

---

FAQs

Can I get a HELOC on property I inherited?

Yes, but only after probate is complete and the title has been transferred to your name. You need clear ownership before any lender will approve a HELOC.

How long does it take to get a HELOC on inherited property?

The HELOC itself takes 2-6 weeks. But probate (required first) takes 6-18 months. Total timeline depends on how quickly the estate settles.

What if I inherited property with multiple siblings?

All heirs must agree to get a HELOC on jointly inherited property. If siblings disagree, you'll need to buy out their shares, partition the property, or sell it.

Do I inherit the HELOC debt if the house had one?

Yes. If the deceased had an outstanding HELOC, that debt transfers with the property. You'll need to pay it off, assume it, refinance, or sell the property to settle the debt.

Can I get a HELOC while the property is still in probate?

No. Traditional lenders require clear title, which you won't have until probate closes. Probate loans are an alternative, but they're expensive—typically 10-15%+ interest.