Best All-in-One HELOCs

All-in-one home equity lines of credit (HELOCs) combine your credit line with your checking account—and sometimes even your mortgage—into one product. A key advantage is the ability to automatically transfer excess funds from your checking account to your HELOC balance for a faster payoff. 

You don’t necessarily need an all-in-one HELOC to do that, though. Read on to learn how to reap the benefits of an all-in-one HELOC with the three best HELOC lenders around.

2 best all-in-one HELOC alternatives 

During our research, we only found one lender offering an all-in-one HELOC. We opted not to include that lender here for two reasons:

1. It hasn’t gone through our vetting process.
2. You can enjoy the benefits of an all-in-one HELOC with a standard HELOC.

This doesn’t mean anything wrong with or shady about that lender. It just means that we’re not sure yet if that lender meets our high standards, so, in good faith, we can’t recommend it to you.

We did realize, however, that you can use your regular HELOC like an all-in-one HELOC. We’ll explain how briefly, but first, we bring you our top HELOC recommendations.

We chose these three best HELOC lenders based on their unique borrower benefits, fast funding times, and well-cultivated lending experiences:

Lender	Rates (APR)	Min. credit score
Figure	8.80% – 17.45%	640
Bethpage FCU	8.50% – 18.00%	670

Figure: Best overall

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LendEDU rating: 4.9 out of 5

• In-person appraisals not required
• Repayment periods from 5 to 30 years
• Not available in Nevada

Figure offers a fully digital HELOC experience. You’ll complete the entire process online, from application to appraisal to funding. In addition to convenience and efficiency, Figure also provides stability in the form of fixed-rate-only HELOCs.

When you open a HELOC with Figure, you must max out your credit line on the first withdrawal. You only have two to five years to make any subsequent draws, so you’ll need to be strategic in paying down your balance if you want to use your HELOC to its full potential.

Bethpage FCU: Best for large HELOCs

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LendEDU rating: 4.7 out of 5

• Appraisals waived for some applicants
• No application, origination, or appraisal fees
• Not available in TX

Bethpage Federal Credit Union provides one of the most affordable HELOCs on the market. With Bethpage, you won’t pay any fees to open your HELOC. Bethpage will cover your closing costs, too, as long as you keep your HELOC open for at least 36 months.

Bethpage also offers a fixed-rate conversion option, letting you freeze all or part of your balance at one interest rate. What Bethpage doesn’t offer, however, is quick turnaround times. Bethpage takes 35 days on average—and sometimes up to 10 weeks—to fund new HELOCs.

How to use your traditional HELOC like an all-in-one HELOC

All-in-one HELOCs work by pairing your credit line with something called a sweep account. Sweep accounts automatically transfer funds over a set threshold to another account—in this case, your HELOC balance.

You don’t need a designated all-in-one HELOC to do that, however. Instead, you can:

1. Ask your bank or credit union if it offers sweep accounts for personal use. Many institutions offer business sweep accounts, but yours might also let regular consumers access these account types.
2. Set high balance alerts and manually transfer the excess. You’ll get a text or email when your account exceeds your specified limit. Then, you can use that overage to pay your HELOC more quickly.

Even if your bank lets you automate your extra HELOC payment, you still want to monitor your funds. Set a limit you can realistically afford, do a biweekly pulse check on your finances, and take quick action if you foresee a greater cash need than your current limit allows. 

That way, you’ll run less risk of your accelerated HELOC paydown preventing you from handling a lean month or other financial emergency.

Ask the expert

Crystal Rau

CFP®

An automatic all-in-one HELOC or integrated sweep account is a great option for borrowers who have higher credit scores and low debt-to-income ratios because of the cash flow flexibility. This is a great tool to add to your toolbelt, especially during periods of a recession when many traditional HELOC loans will reduce credit lines or eliminate them. Because an all-in-one HELOC is a first-lien holder, it provides more flexibility in terms of the amount of risk the bank is willing to take on and gives homeowners (and property investors alike) the opportunity to be more flexible with future cash and spending needs.

What are the eligibility requirements for an all-in-one HELOC? 

Whether you’re applying for an all-in-one or traditional HELOC, your eligibility hinges on your creditworthiness, debt-to-income ratio (DTI), and loan-to-value ratio (LTV).

Borrowers with higher credit scores and lower DTIs are more likely to be approved for HELOCs with lower rates. It’s your LTV, though, that ultimately decides if you qualify and, if so, how much you can borrow with a HELOC.

Simply put, your LTV tells lenders how much your home is worth compared to how much you owe on your mortgage. Higher LTVs are considered riskier, so many lenders set LTV limits, usually around 85%. If your lender has an 85% LTV threshold, it means that:

• You won’t qualify for a HELOC if your LTV is already above 85%, no matter how good your credit is.
• Your HELOC size will be restricted to an amount that keeps you at or below an 85% LTV, no matter how much equity you have in your home. 

To qualify for a larger HELOC and at better rates, improve your credit score and pay down your mortgage as much as possible before applying.

How to apply for a HELOC 

When you’re ready to apply for a HELOC, you’ll follow a similar process for other loan types, only this time with an appraisal added in. Here’s what you’ll do:

1. Prep your documents. Because HELOCs are tied to your home, you’ll submit mortgage statements, property tax bills, and proof of homeowners insurance alongside standard loan paperwork, like proof of identity and pay stubs.
2. Prequalify with different lenders. Opening a HELOC is a major commitment, so check your rates with four to five lenders before you apply.
3. Consent to a credit check and apply. You can proceed with the full application when you find a loan offer you like. During this step, you’ll agree to a hard credit pull and upload your documents.
4. Schedule an appraisal. The appraisal, if required, is the last step before your lender can finalize your HELOC. Depending on your lender, the appraisal may be virtual or in-person.
5. Close on your HELOC. After the appraisal, your lender will send you a HELOC disclosure. Review and sign your paperwork to formally open your HELOC.

You can likely fill out your lender’s HELOC application in a few minutes, but appraisals and funding timelines vary. Expect the full HELOC process to take anywhere from a few days to several weeks to complete.

Tip

If you want the benefits of an all-in-one HELOC with your traditional HELOC, don’t forget to either open a sweep account or set up high balance alerts with your bank. 

Once you can access your credit line, you can use your HELOC for anything from vacations to debt payoff. While enjoying this cash infusion, set aside time to develop a repayment plan.

Decide whether a sweep account or manual transfers make more sense for you, as well as how much extra you can pay each month. The peace of mind and long-term financial benefit you’ll get from mapping out your HELOC exit strategy early on will be well worth the effort.

Recap of the best all-in-one HELOC alternatives

Lender	Rates (APR)
Figure	8.80% – 17.45%
Bethpage FCU	8.50% – 18.00%