Best HELOC Lenders and Rates

A home equity line of credit can give you access to cash for debt consolidation, home improvements, or other expenses. Knowing how to shop for a HELOC matters if you hope to get the lowest rate, so we reviewed HELOC lenders to find the best.

Table of Contents

1. Reviews of the best HELOC lenders
2. How to get the best rates
3. How to qualify
4. What can I use a HELOC for?
5. Alternatives
6. How to apply
7. FAQ
   1. What is the best lender with no closing costs?
   2. What is the best HELOC with no origination fees?
   3. What is the best option with no annual fees?
   4. Which is the best based on my credit score?

Reviews of the best HELOC lenders

A home equity line of credit (HELOC) is a lending option that enables you to access cash from the equity in your home. You can use this cash for a variety of purposes, including home renovations, debt consolidation, and more.

Many lenders offer HELOCS, but some are better than others. Below are the best HELOC lenders based on rates, terms, ease of application, funding time, and more.

Here’s a summary of our recommendations for the best HELOC companies:

• Best overall: Figure
• Best customer reviews: Aven
• Best credit union: Bethpage
• Best marketplace: LendingTree

Figure

Best Overall

4.9 _/5

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Why Figure is one of the best

Figure is our choice as the best overall home equity line of credit because of its speedy approval and funding process. Some HELOC lenders can take weeks to make a decision and might require you to sign in person. However, with Figure, you can complete the application online and get approved in minutes.

• All HELOCs come with a fixed rate
• 100% online application and appraisal
• Get funds in as little as 5 days
• Redraw up to 100% of your funds
• Check your rate without affecting your credit score
• Figure offers online and video notary support, with an average response time of less than 45 seconds.
• No closing costs
• No annual fees
• Borrow against a primary home, second home, or investment property

• Charges an origination fee
• The full loan amount must be drawn at origination

Loan terms

Rates (APR)	7.45% – 16.15%*
Loan amounts	$20,000 – $400,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 20 years

Eligibility requirements

• The property must be a single-family residence, townhome, or planned urban development. Most condos are eligible properties
• Ineligible properties include co-ops, commercially zoned real estate, and others mentioned in the outline
• Title changes within the last 90 days or properties in below-average condition are also ineligible
• Eligible in 45 U.S. states and Washington, D.C. 
• You must have 30% or higher equity in your home
• Excluded states are Hawaii, Kentucky, New York, Texas, and West Virginia.
• Maximum loan-to-value (LTV): Up to 95% LTV—this is a combined LTV among all home loans
• Maximum debt-to-income: Up to 50%
• Minimum credit score: 640

Aven

Best Customer Reviews

4.8 _/5

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Why Aven is one of the best

Aven’s HELOC offers several unique benefits you won’t find with other lenders. It features a fixed interest rate throughout the life of the loan, a Lowest Rate Guarantee, and the ability to check your rate without affecting your credit score. The 100% digital application process allows for approval in as little as 15 minutes.

Aven offers an optional protection program through Securian that will cover your minimum payment for up to six months if you lose your job. With over 4,000 positive reviews on Trustpilot (in December 2024), most of Aven’s customers agree that it’s an excellent home equity option.

• No closing costs
• No annual fees
• Offers a Lowest Rate Guarantee
• Optional Debt Protection program through Securian
• Approval in as little as 15 minutes
• 100% digital application process
• Excellent reviews from over 3,450 customers
• Check your rate without affecting your credit score

• 4.90% first-draw fee
• Not available in 19 states

Aven’s HELOC isn’t available to residents of Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Maryland, Massachusetts, Missouri, Montana, Nevada, New York, Rhode Island, South Carolina, Texas, Vermont, Washington, or West Virginia

Loan terms

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $250,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 30 years

Eligibility requirements

• Excluded states: Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Maryland, Massachusetts, Missouri, Montana, Nevada, New York, Rhode Island, South Carolina, Texas, Vermont, Washington, and West Virginia
• Maximum loan-to-value (LTV): Up to 89%
• Minimum credit score: 640

Bethpage

Best Credit Union

4.7 _/5

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Why Bethpage is one of the best

Bethpage Federal Credit Union offers competitive rates on its HELOCs, including a low introductory rate for the first year. Bethpage allows you to borrow up to $1 million. It covers all closing costs for lines under $500,000, saving its customers thousands in fees.

Bethpage has an average funding time of 34 days from application. Once approved, you’ll have a draw period of 10 years, during which you can use your HELOC as needed. Once that period ends, you enter a 20-year repayment period.

• Low, fixed interest rate for the first 12 months on HELOCs of $25,000 or more for VantageScores of 720 and up.¹
• HELOC converts to a variable rate after 12 months
• No closing costs²
• $0 in application, origination, and appraisal fees
• No annual fees
• Convert portions of your HELOC to fixed-rate loans³
• Rate discounts are available if you schedule payments from a Bethpage personal savings or checking account

• Funds available within 35 days, on average
• No prequalification form with a soft credit check
• Bethpage doesn’t disclose income or debt-to-income (DTI) requirements online
• Required minimum credit score of 670

Loan terms

Rates (APR)	12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rate
Loan amounts	$10,000 – $1 million
Repayment terms	Draw: 10 years / Repayment: 20 years

Eligibility requirements

Bethpage doesn’t disclose every eligibility requirement, such as which properties qualify and the income or DTI you need to be approved. However, here are the eligibility requirements listed on the Bethpage website:

• For Bethpage’s introductory rate, the maximum LTV is 75%
• Minimum credit score for borrowers is 670
• Membership at Bethpage is required
• Hazard insurance and/or flood insurance is required for loans secured by property

LendingTree

Best Marketplace

4.5 _/5

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Why LendingTree is one of the best

LendingTree gets our vote for the best HELOC marketplace. It isn’t a lender; rather, you can use the marketplace to compare several HELOC offers to ensure you’re getting the best rates and terms.

• Filling out the form to compare lenders doesn’t affect your credit score
• Compare offers from multiple lenders
• No costs to submit an online form
• No impact on your credit for checking offers

• Only matches you with its partner lenders
• The terms available will depend on the lenders you’re matched with

Loan terms

Rates (APR)	Varies by lender
Loan Amounts	$10,000 – $2 million
Repayment Terms	Draw: 2 – 20 years / Repayment: 5 – 30 years

Eligibility requirements

Because LendingTree is a marketplace, no one set of eligibility requirements applies to all lenders. However, most lenders on LendingTree will require good credit and a max LTV of around 85%.

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Read More

Best no-fee HELOCs

How to get the best HELOC rates

Getting the best rates on a home equity line of credit begins with research. The following are important considerations when comparing HELOC rates.

• Introductory rates. Some lenders, including Bethpage, may offer home equity loan and HELOC promotions or make borrowing easier for veterans. These include introductory rates for HELOCs. For example, Bethpage offers a 12-month intro rate of 6.99% for VantageScores of 720 and up. After that, rates are variable.
• Fixed vs. variable rates. A fixed-rate HELOC could make sense if you want predictable payments and don’t want to worry about rate adjustments making your loan more expensive. Variable-rate HELOCs can be more attractive when rates are low.
• Rate discounts. HELOC lenders can use rate discounts as an incentive to attract borrowers. When comparing HELOC options, consider what discounts you might take advantage of to reduce your rate. 
• Fees and closing costs. Some lenders, including Figure and Bethpage, don’t charge closing costs, which can save you significant money.
• Maximum LTV ratio allowed. Most lenders let you borrow a maximum of 80% to 85% LTV; however, SpringEQ allows you to borrow up to 95% LTV.
• Convertibility. If you’re leaning toward a variable-rate HELOC, consider whether you might have the option to switch to a fixed rate later. Not all HELOC lenders offer this benefit, but it can be appealing if variable rates lose their luster after closing. 

It’s also important to consider other factors, including:

• Minimum and maximum loan amounts
• Minimum credit score and income requirements
• Application, approval, and funding speed
• Draw periods
• Repayment terms
• Fees

The easiest way to see what different lenders offer is to use our top-rated marketplace, LendingTree, to compare rates and terms.

How to qualify for a HELOC

HELOC lenders consider various factors when deciding whether to approve you. The critical considerations for HELOC approval often revolve around:

• Credit scores
• Income
• Debt-to-income ratio (DTI)

Higher credit scores can make it easier to get approved for a HELOC and qualify for the lowest rates. Our research found minimum FICO credit score requirements in the 620 to 640 range—considered fair credit—but a “good” credit score is 670 to 739. You’ll need a score of 800 or better for excellent credit. 

Lenders consider the type of home you own. This is important because your home secures the HELOC. Income and debt-to-income ratio—your monthly debt payments divided by your pre-tax monthly income—also matter because they tell a lender how much money you can dedicate to repaying a home equity line of credit. 

The equity you have in your home also matters. It’s typical for lenders to cap the maximum LTV for a home equity loan at 80% or 85%. 

However, as you can see from our roundup of the best HELOC lenders, the maximum LTV can be higher or lower than that range. You can use a home equity calculator to estimate how much you might be able to borrow. From there, the next step is getting rate quotes and reviewing approval requirements with individual lenders. 

Home Equity Loan Calculator

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What can I use a HELOC for?

A HELOC could be the best option for borrowing against home equity when you don’t know how much cash you might need. You could use a HELOC to pay for a one-time expense or ongoing costs. 

Here are scenarios where a HELOC might be a solid option for funding expenses. 

Purpose	You could use a HELOC to…
College	Pay for college expenses, such as tuition, fees, room and board, off-campus housing, books, or a new laptop. You can also use it to pay off student loans.
Home repairs	Purchase supplies, pay contractors’ fees, complete landscaping projects, remodel, and get necessary inspections or permits for renovations and home repairs. You can also use a HELOC for new construction.
Healthcare	Make copayments or coinsurance payments, meet deductibles, purchase prescriptions, or pay medical bills insurance doesn’t cover.
Emergencies	Cover emergency veterinary bills, pay for major car repairs, fix damage to your home that insurance doesn’t cover, or fund day-to-day living expenses if you can’t work because of an illness or injury.
Business	Fund startup costs, marketing costs, and other operational business expenses. However, if the business fails, you must repay what you borrowed or risk the lender foreclosing on your house.
Debt consolidation	Pay off high-interest debts, such as credit cards or personal loans, to consolidate debt, simplify your payments, and potentially reduce your overall interest costs, making debt management more manageable.

Is there anything you shouldn’t use a HELOC for?

We advise against using a HELOC for non-necessary costs because you risk losing your home if you can’t repay it.

Some examples of purchases you shouldn’t use a HELOC for include weddings, vacations, and luxury purchases.  If you use your HELOC for home improvements, choose renovations that add value to your home. 

For example, adding a movie room might make your home more enjoyable to live in, but it might not increase its value much.

Alternatives to a HELOC

A HELOC is one option for getting cash, but it may not suit everyone. Some properties, such as co-ops, may not allow HELOCs. Business owners may want to consider commercial equity lines of credit.

HELOC alternatives include:

• Home equity loans: Unlike a HELOC, a home equity loan gives you a one-time lump sum payment, which you pay back in fixed payments. This is better for you if you prefer predictable payments each month. (Best home equity loans)
• Personal loans: Personal loans tend to have higher interest rates than HELOCs. However, with a personal loan, you don’t have to use your home as collateral. So these might be better if you don’t want to risk losing your home if you default. (Best personal loans)
• Credit cards: Credit cards are the most convenient option because you can fill out an application in just a few minutes. However, they have much higher interest rates than HELOCs. We only recommend using credit cards if you can pay them off in full every month.

Home equity loans allow you to tap into your equity by borrowing a lump sum. Compared to a HELOC, home equity loans may have longer repayment periods. Fixed rates are more common with home equity loans, which means the rate and monthly payment will remain the same for the life of the loan. 

You might prefer personal loans to home equity loans or HELOCs if you’d prefer not to use your home as collateral. If you fail to repay a HELOC or home equity loan, you risk losing your home to foreclosure. Many personal loans are unsecured, eliminating that risk. 

Credit cards are another option for borrowing if you don’t need cash. For example, you might use a credit card to purchase supplies for home renovations or cover an emergency expense. Watch out for the rate: Credit card interest rates can be much higher than HELOC rates. 

How to apply for a HELOC

Applying for a HELOC is similar to applying for other loans, but it’s wise to know what to expect. Before you hit “submit” on a loan application, it’s helpful to do the following:

• Estimate how much you’ll need to borrow
• Calculate your home equity
• Check your credit score
• Review your income and debt

Once you have numbers, you can shop for the best home equity line of credit. This is where it pays to compare rates, fees, and loan terms to find the right option.

Every lender has unique guidelines for submitting a HELOC application. You may be able to check your rates first before completing the entire application. 

Lenders that offer this often allow you to prequalify through a short online questionnaire that doesn’t affect your credit. It’s an opportunity to see how much you might pay to borrow before completing a full application and having a hard credit inquiry added to your credit report. 

You’ll likely need several documents to apply for a HELOC, and it’s wise to organize them beforehand. For example, a lender may ask to see the following:

• Recent pay stubs
• Tax forms for the previous year or two years
• Bank statements
• Copies of your homeowners insurance policy and flood declarations
• Current year property tax bill
• Recent mortgage statements

If you’re applying for a HELOC online, your lender should tell you how to upload those documents. Whether you need an appraisal can depend on the lender. Some lenders allow automatic appraisals online, while others require an in-person evaluation of your home. 

FAQ

What is the easiest HELOC to apply for?

Figure is the easiest HELOC to apply for because you can fill out the application online, and it only takes a few minutes. You also don’t need to wait for an in-person appraisal. Figure grants approval in five minutes, and you can get funds in as little as five days.

However, the company will still verify your income and employment, the condition of your home, and whether or not your county allows e-signatures for closing. 

Which HELOC has the highest LTV?

LTV stands for loan-to-value ratio. It’s the percentage of your equity that lenders will allow you to borrow with a HELOC. Most lenders allow 85% LTV.

What is the best HELOC with no closing costs?

The HELOCs we recommend without closing costs are Figure, Aven, and Bethpage. This policy benefits borrowers because closing costs can be 2% to 5% of a loan amount. 

Bethpage’s no-closing-costs policy applies to lines of credit under $500,000. Figure may charge an origination fee of up to 4.99%, but you won’t pay closing costs. And with Aven, you’ll pay a 4.90% first-draw fee.

What is the best HELOC with no origination fees?

Our favorite HELOC lender that doesn’t assess origination fees is Bethpage. Origination fees could be as high as 5% of the loan amount, so waiving them can result in significant savings.

What is the best HELOC with no annual fees?

None of our highest-rated HELOC lenders—Figure, Aven, and Bethpage—charge annual fees.

Which HELOC is the best based on my credit score?

Our recommended HELOCs by credit score are:

FICO score range	Our recommended lender
Excellent (800+)	Bethpage FCU
Good (670 – 799)	Figure or Aven
Fair (580 – 669)	LendingTree
Bad/Poor (300 – 579)	LendingTree

How does a HELOC work?

A HELOC is a line of credit that allows you to borrow against your home equity. HELOCs have a draw period, during which you can use your credit line, followed by a repayment period. 

Draw periods can last five to 10 years, while repayment periods can last up to 20 years. You may be required or given the option to make interest-only payments during the draw period. You only pay interest on the amount of your credit line you use.

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Tip

Some lenders offer HELOCs with no prepayment penalties, offering more control over the repayment process.

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What’s the average HELOC rate today?

The average HELOC rate is not fixed and can fluctuate by day or week. The average for fixed-rate HELOCs, which are often attractive to retirees, may differ from variable-rate HELOCs.

The Wall Street Journal reported the average HELOC rate as of May 2024 was 8.61% nationwide. Rates have gone up since then, with CBS News reporting the average HELOC rate in December 2024 is 8.55%.

How do I know if I got a good HELOC rate?

The simplest way to evaluate whether a HELOC rate is “good” is to compare it to HELOC rates from other lenders.

However, it’s essential to remember that what constitutes a good rate for you may differ from someone else. Your credit scores and income can influence the rates you pay. The best HELOC rate is the lowest one you can be approved for based on your credit and other qualifications, considering what fits in your budget.

Do interest-rate hikes affect my HELOC rate?

Interest-rate hikes can affect your HELOC rate if you have a variable-rate loan. Variable-rate HELOCs are tied to an index rate; when that index rate goes up, the rate on your HELOC can also increase. HELOCs are indexed to the prime rate, which follows movements in the federal funds rate. 

The federal funds rate is the rate at which banks lend to one another overnight. When the Federal Reserve adjusts the federal funds rate up or down to steer economic policy, HELOC rates can follow suit. 

Are there limitations to how I use a HELOC?

You can use a HELOC to meet various financial needs, including home renovations or repairs, debt consolidation, major purchases, or emergency expenses. If there are any limitations on what you can use a HELOC for, your lender should disclose those upfront. 

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HELOCs for ADUs

How long does it take to get funds from a HELOC?

The time it takes to get HELOC funds after approval can vary by lender—from a few days to several weeks. Funding may be faster with online HELOC lenders versus traditional banks or credit unions. 

How we chose the best HELOC lenders

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, flexible repayment plans, and unique benefits that support borrowers throughout repayment.

Recap of the best HELOCs