For many individuals pursuing a U.S. Green Card through the EB-5 Immigrant Investor Program, one of the most critical requirements is proving that the funds used for the investment were legally obtained. The U.S. Citizenship and Immigration Services (USCIS) allows investors to use various sources of funds—including income from employment, proceeds from property sales, personal loans, gifts, inheritances, and more—as long as they can show a clear and lawful origin.

Among these options, a Home Equity Line of Credit (HELOC) is especially popular with EB-5 applicants already living in the United States, such as those on H-1B, E-2, or L-1 visas. These investors often own property and see their home equity as a valuable financial asset that can help them secure permanent residency.

This article walks through how EB-5 investors can use a HELOC to fund their investment and, just as importantly, how to demonstrate to USCIS that these funds were lawfully sourced.

Understanding What HELOC Is

A HELOC is essentially a line of credit that’s backed by the equity you’ve built up in your home. Instead of selling the property to access its value, you can borrow against the increase in your home’s market value. These loans are revolving credit lines, meaning you can withdraw funds up to a certain limit, repay them, and borrow again—much like a credit card.

HELOCs are particularly common among investors who have lived in the U.S. for several years and purchased homes during that time. Rather than liquidating assets or relying on complex financing structures, they simply leverage the value they already hold in their homes.

How HELOC Loans Work in Practice

Let’s break it down with a simple example. Suppose you bought a home in 2019 for $500,000. You likely made a 20% down payment—about $100,000—and financed the remaining $400,000 through a mortgage. Fast forward to today, and let’s say your home is now worth $1,000,000. That means you’ve built up $500,000 in equity.

A HELOC allows you to borrow a portion of that $500,000 without selling your house. The bank evaluates the current market value of your home, confirms the equity you’ve gained, and approves a loan based on that amount. You then repay the loan in installments—just like any other line of credit.

How to Prove Source of Funds When Using HELOC

When applying for an EB-5 visa, you’ll need to provide extensive documentation that proves not just where the HELOC money came from, but how you obtained the property and funded your mortgage in the first place.

Start with your home’s closing disclosure—a document issued by your lender when you originally purchased the property. This outlines the total cost of the home, the size of your down payment, and how the funds were transferred. USCIS will scrutinize this document to understand exactly how you came up with the money.

For instance, if your down payment was split into two installments—say, a $60,000 initial escrow deposit and a $40,000 final payment—you’ll need to show how you earned or saved that $100,000. USCIS will expect a full paper trail.

This involves pulling up old bank statements—usually going back seven years from the time of purchase—and extracting pay stubs, tax returns, and savings account activity that demonstrate how those funds accumulated. They want to make sure your money didn’t come from an undisclosed third party or a questionable source.

Additionally, you’ll need to prove that the mortgage you used to finance the rest of the purchase was paid using your regular, legally earned income. For this, your documentation should include W-2 forms, tax filings, and bank statements showing your mortgage payments from the time you bought the home until now.

In the earlier example, if you purchased the home in 2019 and are applying for EB-5 in 2025, your paperwork will span two periods: pre-purchase income and savings from 2017 to 2019, and mortgage-related income from 2019 to 2025.

Tips for a Successful EB-5 Filing Using HELOC Funds

While using a HELOC can be an effective funding method for your EB-5 investment, it’s crucial to follow best practices to avoid delays or rejections.

Hire an EB-5-Focused Immigration Attorney

Successfully documenting your source of funds is a specialized task. An experienced EB-5 immigration lawyer will know exactly what USCIS wants to see and can guide you through the entire process. They’ll ask questions like: When did you purchase your home? Did you receive help from friends or family? How have you paid your mortgage over time? The answers to these questions will help shape your documentation package.

Stick With Reputable Financial Institutions

To minimize complications, always secure your HELOC through a licensed bank or credit union. USCIS requires detailed source-of-funds documentation for any loan taken from a non-bank lender, such as online lending platforms or private institutions. That means if your HELOC provider isn’t a bank or credit union, you’ll be expected to provide documentation about how they obtained the money to lend you. This includes their own tax returns and bank statements—documents you almost certainly won’t be able to access.

Even if USCIS overlooks this during your initial I-526E petition, they could still raise the issue later during your I-829 filing. Without proper documentation, your Green Card could be at risk.

Choose EB-5 Projects With Clear Refund Guaranties

One extra layer of protection is to invest in a project that offers a solid I-526E denial refund guaranty. This way, if USCIS denies your petition due to issues with your source-of-funds documentation, you’re not left empty-handed.

Be wary of refund guaranties that use vague or conditional language like, “We’ll refund you if we can,” or “We’ll try to find a new investor to replace you.” These are not real guaranties. Read the offering documents carefully and make sure the refund clause is clear, direct, and enforceable.

Partnering With Professionals Can Make All the Difference

Using a HELOC for your EB-5 investment can be a practical and accessible choice—especially if you’ve built up significant equity in your home. But this strategy also brings added responsibility when it comes to proving your funds were lawfully sourced.

By working with qualified professionals, including an immigration attorney and a reputable regional center, you can navigate the EB-5 process more confidently. These experts will help ensure your documentation is thorough, accurate, and aligned with USCIS requirements.

With a 100% approval rate to date and over 2,300 families successfully guided through the EB-5 process, EB5AN offers trusted, low-risk projects and expert support every step of the way. Book a complimentary consultation with our team today.