A HELOC is a secured loan that requires collateral — the equity in your home. The process usually requires a home appraisal, which incurs a fee, and often requires fees for a title search as well as closing costs. Additionally, obtaining a HELOC will mean that the equity in your home is reduced by the amount of the line of credit.
The process of getting a PenFed Home Improvement loan is a lot simpler, and your home’s equity is not touched. You can apply online without providing information about your home, and there are no fees involved.