HELOC or Home Equity Loan

[Peter Szilagyi]

Currently have about $200k-$300k of equity that I am looking to tap into, but not sure if I should go HELOC or Home Equity Loan (5% for 20 years fixed).

I don't have a property ready to go, but would use about 25% to make home improvements, so I would be sitting on the majority of the capital for at least 2-3 months (up to 6 at most). That would lead me to going with a HELOC. However, in the event it takes me 6 months to move on a property, is anyone worried that credit markets tighten or home prices sink enough that banks start to freeze untapped HELOCs?