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.

Reviews of the best HELOC lenders

A HELOC, or home equity line of credit, is a lending option that enables you to tap into the equity you have in your home and access cash. 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 for large HELOCs: Bethpage
• Best marketplace: LendingTree

Figure

Best overall

4.9 _/5

LendEDU Rating

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Why Figure is one of the best

Figure is our choice as the best overall home equity line of credit, thanks to 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.

• Eligible homeowners can borrow up to $400,000
• All HELOCs come with a fixed rate
• 100% online application and appraisal
• Receive funds in as little as five 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.
• There are no closing costs 
• Available in most states
• There are no out-of-pocket costs
• Borrow against a primary home, second home, or investment property

• Charges an origination fee
• The full loan amount will 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

• Property must be a single-family residence, townhome, or planned urban developmen. 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
• Minimum income: Not specified

Aven

Best customer reviews

4.8 _/5

LendEDU Rating

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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 become unemployed. With over 3,450 positive reviews, Aven is highly regarded by its customers.

• 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 CT, DE, GA, HI, ID, IN, MD, MA, MO, MT, NV, NY, RI, SC, TX, VT, WA, or WV

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 are CT, DE, GA, HI, ID, IN, MD, MA, MO, MT, NV, NY, RI, SC, TX, VT, WA, or WV
• Maximum loan-to-value (LTV): Up to 89%
• Minimum credit score: 640
• Minimum income: Not specified

Bethpage

Best for large HELOCs

4.7 _/5

LendEDU Rating

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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, possibly saving its customers thousands in fees.

Bethpage has an average funding time of 34 days from application. Once approved, you will have a draw period of ten years, during which you will be able to 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
• Minimum amount of $10,000 and a maximum of $1 million.
• Ability to convert portions of your HELOC to fixed-rate loans 3

• 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
• Rate discounts are available if you schedule payments from a Bethpage personal savings or checking account

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, like which properties qualify and the income or DTI you need to be approved. However, here are some of 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

LendEDU Rating

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Why LendingTree is one of the best

LendingTree gets our vote for the best HELOC marketplace. That means LendingTree 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
• The terms available will depend on the lenders you’re matched with
• You may receive up to $2 million in funds with repayment terms from five to 30 years.
• 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

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, there is not one set of eligibility requirements that apply to all lenders. However, most lenders on LendingTree will require good credit and a max LTV ratio of around 85%.

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, like 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. On the other hand, 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, like 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 a marketplace like LendingTree to compare rates and terms.

Does your state affect HELOC rates? Check out our resources to see the best lenders in your state:

• Arizona
• California
• Colorado
• Florida
• Massachusetts
• New Jersey
• New York
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia
• Washington

How to qualify for a HELOC

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

• Credit scores
• Income
• Debt-to-income ratio

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

When you need cash for…	You could use a HELOC to…
College	Pay for college expenses such as tuition, fees, room and board or off-campus housing, books, or a new laptop. You can also use it to pay off student loans.
Home improvements or 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 cannot work because of an illness or injury.
Business	Fund start-up costs, marketing costs, and other operational business expenses. However, if the business fails, you still have to pay back what you borrowed or risk the lender foreclosing on your house.
Debt consolidation	Pay off high-interest debts, like 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 costs that aren’t necessities 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 substantially increase its value.

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. While shopping for the best home equity line of credit, you might also consider other ways to borrow.

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.
• Personal loans: Personal loans typically 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.
• 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 and would only be advisable if you can pay them off in full each 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. 

Personal loans might be preferable 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 APR because 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 who 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 organizing them beforehand is wise. 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. Additionally, you don’t have to wait for an in-person appraisal. Figure grants approval in five minutes and you can receive 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.

Navy Federal Credit Union allows a 95% LTV. State Employees’ Credit Union offers 90% LTV. Additionally, TD Bank allows an 89.9% LTV. Truist offers an 89% LTV. Most other lenders offer an 85% LTV.

What is the best HELOC with no closing costs?

There are three HELOCs we recommend that don’t have closing costs: Figure, Bethpage Credit Union, and Bank of America. Not having closing costs is incredibly beneficial to borrowers, since closing costs can be 2% to 5% of a loan amount. 

Read the fine print if you decide to use one of these lenders. For example, Bank of America waives closing costs for credit lines under $1 million, and Bethpage does the same for credit lines under $500,000. 

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.

Tip

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

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 as of October 2024 is 8.52%.

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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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. Hitch, for example, can provide funding within a few days, while other lenders may require you to wait two to six weeks to access funds. 

Generally, 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