Best HELOCs and Home Equity Loans for Veterans: Top Lenders and Rates in 2025

Accessing your home equity can be an effective way for veterans to fund home improvements, consolidate debt, or cover major expenses. The Department of Veterans Affairs (VA) doesn’t offer HELOCs or home equity loans, but many lenders do.

This guide highlights the top HELOC and home equity loan options for veterans in 2025, including both military-focused institutions and more widely available alternatives. We break down key features, strengths, and considerations to help you choose the option that best fits your needs.

Table of Contents

1. The best HELOC for veterans
   1. HELOCs that cater to military members
      1. Navy Federal Credit Union
      2. PenFed Credit Union
      3. Armed Forces Bank
   2. Traditional HELOC lenders for veterans
      1. Aven
      2. FourLeaf
2. What are the best home equity loans for veterans?
3. Veteran home equity loan and HELOC requirements
   1. Can you get a HELOC if you have a VA loan?
4. Pros and cons of HELOCs for veterans
5. Consider a VA cash-out refinance
   1. Benefits of a VA cash-out refinance
   2. How does a VA cash-out refinance differ from home equity loans and HELOCs?
6. What lender should veterans choose? 
7. What are the best HELOC rates for veterans?
8. FAQ
   1. Are HELOC interest payments tax-deductible for veterans?
   2. Is there a special HELOC for veterans?
   3. Is a HELOC better than a home equity loan for veterans?

The best HELOC for veterans

If you prefer to work with a lender that understands the needs of service members and their families, the options below are a strong place to start. These military-focused institutions often offer more flexible equity and loan-to-value (LTV) limits, competitive rates, and underwriting tailored to veterans’ financial situations. Eligible active-duty members, veterans, and qualifying family members can apply.

HELOCs that cater to military members

Traditional HELOC lenders for veterans

Read More

Best HELOCs

What are the best home equity loans for veterans?

If you’re looking for a borrowing option with predictable monthly payments, a home equity loan may be a better fit than the HELOC options listed above. Home equity loans provide a single lump sum with a fixed interest rate, making them useful for renovations, debt consolidation, or other major expenses that benefit from cost certainty.

Two strong choices for veterans considering a home equity loan include:

• Navy Federal Credit Union, which offers a military-specific home equity loan for eligible active-duty members, veterans, and their families.
• LendingTree, a widely available marketplace that isn’t limited to military borrowers but allows you to compare multiple home equity loan offers at once to find the best rate and terms.

You’ll find a comparison of these options in the table below. Also see our full list of the best home equity loans for options to explore.

Veteran home equity loan and HELOC requirements

Qualifying for a home equity loan or HELOC as a veteran is similar to qualifying as a civilian, but military-focused lenders may offer slightly more flexibility—especially if you already have an account or direct deposit with them. Here are the key requirements veterans can expect:

• Membership and service eligibility: Military-focused lenders generally require you to be an active-duty service member, veteran, or qualifying family member. You may need proof of service, such as a military ID or DD214.
• Credit score: Many lenders state minimums between 620 and 680, but in practice, approvals often go to borrowers with 720+. Veteran-focused institutions may be more accommodating if you have strong banking history with them.
• Debt-to-income ratio (DTI): A DTI of 43% or lower is preferred. Some military lenders may count certain military allowances as income, which can help strengthen your application.
• Home equity: Expect to need at least 15–20% equity, though exact LTV limits vary by lender and product.
• Property type: Primary residences are most commonly eligible. Some lenders may allow secondary homes, including those purchased during PCS relocations.

Can you get a HELOC if you have a VA loan?

Yes. You can get a HELOC on a home purchased with a VA loan. Even though the VA does not offer its own HELOC program, most lenders will allow you to open a HELOC or home equity loan as long as you meet their standard approval criteria.

A few key points:

• Your VA loan does not restrict your ability to tap home equity. Once you have a VA mortgage, it functions like any other home loan for HELOC purposes.
• Your VA entitlement is not affected. Taking out a HELOC does not use additional VA entitlement or change the terms of your existing VA loan.
• Approval depends on the lender. You will still need to meet the lender’s credit, income, and equity guidelines. Your VA mortgage does not hurt or help your approval odds.

In short, having a VA loan does not prevent you from getting a HELOC. Your eligibility depends on the lender’s requirements, not your VA mortgage.

Pros and cons of HELOCs for veterans

These are the benefits of veteran-specific HELOCs:

Pros

• Flexible terms

  Many lenders offer interest-only payments during the draw period, which can lower costs for veterans on fixed incomes.

• Higher LTV options

  Some veteran-focused lenders allow borrowing up to 95% of your home’s value.

• Military benefits

  Veteran-specific lenders may waive fees, offer competitive rates, or provide additional benefits like expedited processing.

• Accessible funds

  Useful for covering variable expenses, such as home improvements or medical costs.

Cons

• Variable rates

  HELOC rates often fluctuate, which could strain budgets if interest rates rise.

• Limited availability

  Some lenders may not operate in all states or serve all property types.

• High equity requirement

  Veterans must have significant home equity, making it less accessible for newer homeowners.

Consider a VA cash-out refinance

A VA cash-out refinance allows veterans to replace their mortgage with a new VA-backed loan while borrowing against their home’s equity. Unlike HELOCs or home equity loans, a VA cash-out refinance gives you a lump sum of cash at closing and consolidates your mortgage into a single payment.

Benefits of a VA cash-out refinance

Here’s why we think a VA cash-out refinance is a solid option to consider:

• No private mortgage insurance (PMI): VA loans don’t require PMI, potentially saving veterans hundreds of dollars per month.
• Competitive interest rates: VA refinance rates are typically lower than conventional loans, making this a cost-effective option.
• High loan-to-value ratios (LTVs): You can borrow up to 100% of your home’s value, depending on lender requirements.
• Flexible use of funds: You can use the cash for just about anything, from paying off debt to making home improvements.

How does a VA cash-out refinance differ from home equity loans and HELOCs?

These are the main differences between the products:

• Repayment structure: A VA cash-out refinance replaces your current mortgage, while HELOCs and home equity loans are separate from your primary mortgage.
• Interest rates: VA loans tend to have lower rates and could be fixed or variable, but fixed rates are more common. Most home equity loans have fixed rates, and HELOCs may have variable rates.
• Flexibility: HELOCs offer ongoing access to funds, whereas a VA cash-out refinance and home equity loan provide a one-time lump sum.

Home equity loan	HELOC	VA cash-out refinance
Funds in a lump sum	Ongoing line of credit	Lump sum
Fixed rate	Variable or fixed	Fixed or variable (often low)
Repayment is separate from mortgage	Separate from mortgage	Replaces current mortgage
Best for one-time expenses	Best for ongoing projects	Best for consolidation mortgage & equity
Borrow up to 90% of home’s value	Up to 90%	Up to 100%

What lender should veterans choose? 

The best lender for a veteran depends on credit profile, how quickly funds are needed, and whether you prefer a military-specific institution or a more widely available option. Military-focused lenders such as Navy Federal, PenFed, and Armed Forces Bank can be good choices if you already have membership, want potentially more flexible underwriting, or prefer working with a lender that understands military pay structures and benefits.

Veterans with strong credit who want fast approval and predictable payments may find Aven appealing because it offers fixed rates, quick funding, and a fully digital application process. Those who prefer a credit union experience may be drawn to FourLeaf, which offers competitive introductory rates and member-focused service.

If you want to compare several offers at once, LendingTree can also be helpful. It is not a military-specific provider, but it allows you to prequalify with multiple lenders to identify the best available rate and terms.

Each lender has different strengths, so the right choice depends on your budget, credit score, and how you plan to use the funds. If you are ready to move forward, review our guide on how to apply for a HELOC.

Veterans may face credit score challenges simply because their history may not be as long as a civilian who has had an ongoing credit line since their early 20s. A veteran may also face challenges with their debt-to-income ratio.

Now that interest rates are higher, mortgage and HELOC payments are higher as well. Therefore, if a veteran is working on increasing their income and credit score, they may not have the same debt-to-income ratio as a civilian. This could either increase their interest rate offering at a non-veteran bank or simply have them be denied altogether. This is why it is crucial to understand each institution’s offerings and how they qualify their borrowers.

Natalie Slagle, CFP®

What are the best HELOC rates for veterans?

Rates are an important consideration when reviewing HELOC offers. These rates can change often, but these lenders offer some of the lowest rates as of November 2025:

• Fixed APR: Aven (6.99% – 15.49%)
• Variable APR: Armed Forces Bank (7.99%)
• Introductory APR: Armed Forces Bank (5.99% for 6 months); FourLeaf (12-month intro rate of 6.99% for VantageScores of 720 and up)

Whether the rate is fixed or variable can also influence how much you pay in the long run. For fixed-rate HELOCs, the rate will stay the same for the entire time the HELOC is open. If you open an account when interest rates are low, a fixed-rate HELOC can be a smart option.

With a variable-rate HELOC, the interest rate changes based on market conditions. This can be a good choice if you open the HELOC when interest rates are high.

FAQ

Are HELOC interest payments tax-deductible for veterans?

HELOC interest is deductible only if the funds are used for home improvements and you itemize deductions when you file your taxes. Check with a tax professional for guidance.

Is there a special HELOC for veterans?

There is no official VA HELOC program. However, some military-focused lenders, like the ones above, offer HELOCs that are available only to eligible service members, veterans, and their families. These products are not VA-backed, but they may include flexible underwriting or member benefits that appeal to veterans.

Is a HELOC better than a home equity loan for veterans?

The better option depends on how you plan to use the funds. A HELOC works well if you want ongoing access to your equity and prefer to borrow only what you need. It can be a good fit for long-term projects or expenses that come up over time.

A home equity loan is better for veterans who want predictable monthly payments and a fixed interest rate. This structure works well for one-time, large expenses such as renovations or debt consolidation.

Both options are available to veterans, and the best choice depends on your budget, timeline, and how much flexibility you need.

How we selected the best HELOCs for veterans

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 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.