Capital One, a national bank known for its wide range of financial products, offers credit cards, auto loans, bank accounts, and more. Capital One was once a player in the home loan and mortgage loan space—but it no longer offers home equity products.
If you are looking for a home equity line of credit (HELOC), there are several other companies to choose from. Here, we’ll offer the best alternatives to Capital One’s HELOC and home equity loans.
Does Capital One offer HELOCs or home equity loans?
No—Capital One no longer offers HELOCs or home equity loans.
The bank exited the residential mortgage business in November 2017, discontinuing home equity products as part of a broader shift to focus on core offerings like credit cards, auto loans, and banking.
What happened if you had a Capital One home equity loan or HELOC?
Existing loans weren’t canceled when Capital One exited the mortgage business. Instead, servicing was transferred to other financial institutions.
Borrowers were notified and instructed to continue payments through their new servicer, with many loans moving to companies like Bank of America and Mr. Cooper. Loan terms generally remained the same—only the servicer changed.
Capital One HELOC alternatives
Because Capital One no longer offers HELOCs or home equity loans, you’ll need to look to other lenders for similar financing options.
The providers below focus specifically on HELOCs, offering flexible, revolving access to your home equity. Keep reading to compare your options and find the best fit for your needs.
Figure
What makes it a good alternative to Capital One?
Figure, our top-rated HELOC lender, harnesses advanced technology to revolutionize the home equity process. Using blockchain and sophisticated algorithms, its platform speeds up the underwriting process, which can take weeks with other lenders.
Figure lets homeowners apply online and get approved within minutes. The application involves a soft credit check and an equity assessment. Once you’re approved, funds can be available in days, not weeks.
Access between $20,000 and $750,000, with competitive fixed rates—uncommon with HELOCs, where variable rates are standard.
Figure requires borrowers to draw 100% of the funds at origination, but you can redraw the funds during the draw period as you repay them. This lender’s availability across most states and D.C. makes it an accessible option.
Pros and cons
- Fast, technology-driven approval and funding
- Fixed rates on all HELOCs
- Get funds in as little as 5 days
- Comprehensive online application process
- Redraw option for repaid funds
- Wide state availability
- Mandatory full draw at origination
- Origination fees up to 4.99%
- No branches for in-person support
- Excludes Hawaii
FourLeaf FCU
What makes it a good alternative to Capital One?
FourLeaf Federal Credit Union offers a unique blend of variable- and fixed-rate HELOCs, appealing to those seeking flexibility and predictability in their borrowing. FourLeaf stands out for its cost-effective approach with no closing costs or hidden fees for credit lines up to $500,000.
The credit union offers a competitive introductory APR for VantageScores of 720 and up, transitioning to a variable rate after 12 months.ⓘ You can convert a portion of your variable-rate balance to a fixed rate, offering stability against fluctuating interest rates.
Membership in the credit union is required, but joining is easy—just open a FourLeaf savings account with a minimum balance of $5. It also offers rate discounts to those who schedule payments from their FourLeaf account.
Pros and cons
- Competitive introductory ratesⓘ
- High loan limits and flexible rate options
- Transparent fee structure
- Almost nationwide availability (excludes Texas)
- Requires credit union membership
- Variable rates after introductory periodⓘ
- Longest funding timeline among alternatives
- Initial draw of $25,000 required
How does a HELOC work?
A home equity line of credit (HELOC) is a revolving line of credit that lets you borrow against your home’s equity, similar to a credit card. You can draw from the line as needed during a set period, then repay what you’ve borrowed over time.
Unlike a home equity loan—which provides a lump sum with fixed payments—a HELOC offers ongoing access to funds. HELOCs typically come with variable interest rates, although some lenders, like Figure (above) offer fixed rate options.
For a deeper breakdown of how HELOCs work, see our full guide.
Requirements
To qualify for a HELOC, you must meet certain criteria. Here are the typical requirements:
- Equity in your home: Most lenders require at least 15% equity in your home.
- Credit score: A good credit score is crucial. Most lenders look for scores above 620 and tend to offer the best rates to those with higher scores.
- Debt-to-income ratio (DTI): Most lenders prefer a debt-to-income ratio lower than 43%. This ratio helps lenders determine your ability to manage monthly payments.
Lenders may have specific requirements, so it’s important to check with individual lenders for their eligibility criteria.
Repayment
HELOC repayment typically happens in two phases: a draw period and a repayment period. During the draw period, you can borrow as needed and may only be required to make interest payments on what you use.
Once the draw period ends, you’ll enter the repayment period, where you can no longer withdraw funds and must repay both principal and interest. This shift often leads to higher monthly payments, so it’s important to plan ahead.
Pros and cons of a HELOC
Before deciding on a HELOC, consider both the benefits and risks.
Pros
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Flexible access to funds
Borrow only what you need, when you need it
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Lower rates than unsecured debt
Typically cheaper than credit cards or personal loans
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Reusable credit line
As you repay, you can borrow again during the draw period
Cons
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Variable interest rates
Payments can increase if rates rise
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Risk of overborrowing
Easy access can lead to taking on more debt than planned
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Impact on credit score
Missed payments or high balances can hurt your credit
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Risk of losing your home
Your home is used as collateral
A HELOC can be a powerful financial tool, but it requires careful planning and disciplined use. Be sure you’ve weighed your options, including:
| Product | Pro | Con |
| Home equity loan | Fixed interest rates cause predictable payments | Less flexibility |
| Cash-out refinance | Potentially lower interest rates with just one mortgage payment | Possibly higher rates and closing costs |
| Personal loan | No risk of losing your home + quick funding | Higher rates; shorter repayment |
| Credit card | Immediate access to funds | High rates can lead to debt without proper management |
| Reverse mortgage | No monthly payments | Reduces home equity |
| 401(k) loan | No credit check required + interest paid goes into your retirement | Risks retirement savings + may need to be repaid if you leave your job |
Every option has a more comprehensive set of pros and cons than we listed, and certain products are more suitable for different financial situations and goals. We recommend consulting a financial professional to determine the best product for your needs.
How to choose the best Capital One HELOC alternative
If you’re confident a HELOC is the right product for you, plan to take the following steps to ensure you’re satisfied with your choice:
- Prequalification and rate shopping: Start by prequalifying with lenders that allow you to do so with a soft credit check. This can help you understand what rates you’re eligible for and compare lenders without affecting your credit score.
- Compare loan features: Beyond rates, look at loan amounts, draw and repayment periods, and any additional fees or requirements.
- Understand the terms: Pay attention to the fine print, including interest rate changes, potential penalties, and conversion options for variable-rate loans.
- Documentation and application process: Prepare all necessary documents in advance.
- Evaluate customer service and support: Consider each lender’s level of customer support. This includes availability, responsiveness, and helpfulness in answering your questions. Check out reviews on websites such as Better Business Bureau and Trustpilot.
- Consider timelines: Be aware of how long it takes for each lender to approve the loan, process it, and make funds available. (For example, does your lender require an in-person appraisal?) This knowledge can be crucial if you have an urgent need.
By considering these aspects, you can make an informed decision and feel confident you’re choosing the best lender for you.
Capital One home equity FAQ
Does Capital One offer other home loans or mortgages?
No, Capital One no longer offers home loans or mortgages. The bank exited the residential mortgage business in 2017 and has since focused on other financial products like credit cards, auto loans, and banking services.
How did Capital One HELOC rates compare to the alternatives?
Capital One’s HELOC rates were generally competitive for their time, but today’s top HELOC lenders offer similar—or better—rates, along with more flexible features like faster funding, online applications, and rate-lock options.
Is Capital One planning to offer HELOCs or home equity loans again?
There’s no indication that Capital One plans to re-enter the home equity or mortgage market. Since its 2017 exit, the company has remained focused on its core lending and banking products.
Recap of Capital One home equity alternatives
| Company | Best for… | Rating (0-5) |
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Best Overall |
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Best Credit Union |
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About our contributors
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Written by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.