Home equity line of credit, also known as a HELOC, is a line of credit secured by your home. It often has a lower interest rate than some other types of loans. You are borrowing against the available equity in your home and your house is used as collateral for the line of credit. Much like a credit card, as you repay your outstanding balance, the amount of available credit is replenished. So you can borrow as little or as much as you need to in the draw period (usually 10 years) up to the credit limit established at closing. The repayment period (usually 20 years) begins after the draw period closes.
In order to qualify for a HELOC, you must have available equity in your home, meaning that the amount you owe on your home should be less than the value of your home. Typically you can borrow 85% of the value of your home minus the amount you owe. Lenders will also look at your credit score and history, employment history, monthly income, and monthly debts.
There may also be fees associated with a HELOC (application fee, annual fee, early closure, etc.). Make sure to ask your lender.