Discover Home Equity Loans Review: No Longer Available, Consider These Alternatives

Home Equity Loans (no longer available)

• Low rates
• No fees

• No longer available

Rates (APR)	8.00% – 13.12%
Loan amounts	$35,000 – $300,000
Repayment terms	10, 15, 20, or 30 years
Min. credit score	680

Discover no longer offers home equity loans for new applicants. When the bank made the announcement, it advised it would continue to process existing applications, but you can’t apply anymore. This recent change is due to a bigger shift behind the scenes.

Capital One acquired Discover on May 18, 2025. Discover will continue as a separate network brand within Capital One, but it’s no longer a different company.

If you’re searching for a similar loan today, several lenders still offer home equity loans with competitive rates and simple online applications. Below, we’ve highlighted the top options available now based on eligibility, interest rates, loan amounts, and other features.

Table of Contents

1. About Discover home equity loans
2. How it worked
   1. Eligibility
   2. Rates
   3. Loan amounts
3. What happened to Discover customers?
4. Customer experience 
5. Customer service
6. Pros and cons
7. Alternatives
   1. Figure
   2. LendingTree
   3. Spring EQ

About Discover home equity loans

Discover made its small-screen debut in a Super Bowl XX advertisement in 1986. Since then, the company has been a well-known financial institution offering different products, most notably the Discover card. 

Throughout the decades, Discover stood out as an innovator, especially with digital access. Customers could pay bills and access their accounts online as early as 1995, and paperless statements were available in 2003. Home equity loans were introduced in 2013 and provided funding to homeowners for over a decade before being discontinued in 2025.

It’s been a tumultuous year for the home equity industry. In addition to Discover’s exit from the market, other lenders are undergoing significant changes. Mr. Cooper, a popular online-only lender, was acquired by Rocket Mortgage in March. While Rocket plans to continue offering home equity loans, existing Mr. Cooper customers will be served under the new brand.

How it worked

Here’s a look at what you could expect from a Discover home equity loan when the product was still available.

Min. credit score	680
Rates (APR)	8.00% – 13.12%
Loan amounts	$35,000 – $300,000
Origination fee	None
Max. LTV	90%
Term lengths	10, 15, 20, or 30 years

Eligibility

Discover had standard eligibility requirements. You needed a solid credit score, reliable income, and equity in your home. The criteria for the loan are similar to those required by other lenders.

What to consider instead: If you’re looking for a home equity loan with similar eligibility requirements to Discover’s former product, Figure could be a strong alternative. It requires a comparable minimum credit score (680), offers flexible term lengths, and provides competitive interest rates. You can check rates quickly online to see whether you qualify.

What if you don’t meet lender requirements?

You can consider a home equity investment (HEI) if you can’t meet the typical eligibility requirements for a home equity loan. Hometap is a home equity investment lender with flexible loan options. You don’t need to meet specific income requirements or have perfect credit. An HEI comes with unique risks, but it’s a valid option for some owners. 

Rates

Discover’s rates were competitive, but they weren’t the lowest available. The rate determines how much it costs to borrow money, so it’s critical to get the most competitive rate you can. Comparing quotes from multiple home equity lenders can help you find the best deal and give you a basic understanding of whether you can qualify for specific terms. 

What to consider instead: Figure has some of the lowest fixed rates for home equity lines of credit (HELOCs). The application process is simple, and you don’t need an in-person appraisal.

While HELOCs are typically revolving lines of credit with variable rates, Figure’s HELOC is structured more like a home equity loan. You receive the full loan amount as a lump sum at closing and repay it over time at a fixed interest rate. The added bonus? As you pay down the balance, you can draw additional funds if needed, giving you flexibility that traditional home equity loans don’t offer. 

Loan amounts

Discover’s home equity loans had lower-than-average maximum amounts. You can use home equity loans for nearly any expense, and you might need more than $300,000. If so, many lenders offer higher maximum loan amounts (provided you have sufficient equity and meet other requirements). 

What to consider instead: LendingTree is a comparison site that allows you to view different offers in one place. Some lenders on the platform offer home equity loans for up to $2 million. That might be far more than you need, but it’s helpful to have options, especially if you’re in the market for a large loan.

What happened to customers who had a HELOAN with Discover?

You don’t need to take any action if you already have a HELOAN with Discover. According to a statement from the company, nothing is changing at this time, and you’ll receive advance notice if any changes happen in the future. 

Capital One hasn’t announced any plans to sell existing home equity loans, but it’s a possibility. You can continue to check your account for any updates about future changes. 

Here’s an in-depth look at the steps you might want to take now that Capital One has acquired Discover, and home equity loans are no longer available.

Customer experience 

The reviews below are for Capital One. Remember, Discover still exists as a brand within Capital One. However, the customer experience is likely to be quite different now that Capital One has acquired the bank.

Understanding Capital One reviews is the most effective way to get an idea of what it’s like to be a customer. The company earns low ratings for customer experience, with users disappointed by access issues and a lack of support. 

Capital One had an outage earlier in 2025 that affected thousands of customers. A third-party vendor caused the issue, but some of the negative reviews may be due to the recent outage and its impact on customers. 

Source	Customer rating	Number of reviews
Better Business Bureau	1.1/5	1,997
Trustpilot	1.3/5	3,121
Google	2.4/5	678

Customer service and the switch to Capital One

Capital One has solid customer service availability. You can contact the company via phone, chat, email, or in person. 

Here’s an overview of the company’s contact information and the best way to get in touch.

• Discover home equity loans: Capital One offers a separate phone number for Discover products, including home equity loans. You can call 1-866-248-1255 for support.
• General Capital One support: You can call 1-877-383-4802 if you’re unsure which department to contact. 
• Capital One credit cards: Call 1-800-227-4825 for credit card-related questions or concerns, or all the number on the back of your card.  
• Capital One banking: The phone number for banking-related issues is 1-800-655-2265. 

Discover equity loan pros and cons

The biggest issue with Discover equity loans is that you can no longer apply for the product. But here’s what to consider if you already have a loan from Discover or want a different option.

Pros

• Decent loan product

  The Discover home equity loan has competitive rates and no fees, making it an appealing pick for current borrowers.

• Current customers don’t need to take action

  Capital One acquired Discover, but you don’t need to make any changes if you’re a Discover customer. Continue making payments as usual, and enjoy your home equity loan.  

Cons

• No longer available

  As of June 2025, you can’t apply for a Discover home equity loan.

Alternatives to Discover home equity loans

You may be looking for an alternative to Discover, as the company no longer offers home equity loans. The following lenders are some of the best options.

Figure vs. Discover

Figure is our top pick for a home equity line of credit (HELOC). HELOCs and home equity loans have several differences, but Figure offers the best of both, with low fixed interest rates and no in-person appraisal.

Figure’s HELOC is one of the most flexible options, allowing you to redraw up to 100% of the funds. However, the flexibility comes at a price, with an origination fee of up to 4.99%. It’s common for lenders to charge fees, but this increases the overall cost.  

LendingTree vs. Discover

As a comparison site, LendingTree stands out due to its ease of use. Instead of filling out multiple forms and providing the same information repeatedly, LendingTree simplifies the process and shows you various offers with a single application.

LendingTree is helpful if you’re open to different types of home equity products and want to find the right fit.  Some customers report excessive communication from specific lenders after receiving offers, but most customer reviews are positive. 

Spring EQ vs. Discover

Spring EQ is an online lender offering home equity loans of up to $500,000. It’s a solid option if you need to borrow more than the standard limit. The company allows borrowers to access up to 95% of their home equity, one of the highest loan-to-value ratios on the market. 

But it’s not available in every state, which might be a deal breaker depending on where you live. The origination fee of $1,395 is steep, but it may be less than other lenders’ fees, depending on the size of your loan.