HELOCs With No Closing Costs: Expert Answers to Your Top Questions

A home equity line of credit (HELOC) can offer flexible access to cash when you need it. Like other mortgages, a HELOC carries closing costs.

A no-closing-cost HELOC can minimize what you pay out of pocket for a line of credit, but be sure you consider any other fees the lender charges. The lenders below offer HELOCs with no closing costs. Keep reading for more on each lender’s no-closing-policy, rates, fees, terms, and loan limits.

Table of Contents

1. What does “no closing cost HELOC” really mean?
2. Do all HELOCs have closing costs?
   1. What do closing costs include?
   2. How much are HELOC closing costs?
      1. HELOC vs. home equity loan closing costs
3. Can you get a HELOC with no closing costs?
   1. What does “no closing costs” include (and exclude)?
      1. Can you get a HELOC with no prepayment penalty?
   2. Downsides
4. Who offers HELOCs with no closing costs?
   1. FourLeaf Credit Union
   2. Figure
   3. Aven
   4. Regions Bank
   5. Alliant Credit Union
   6. Truist
5. What’s the lowest-cost HELOC?
6. How do you qualify?
   1. Can you ask your lender to waive HELOC fees?
   2. Do lenders waive fees or roll them in?
7. Best HELOC alternatives without closing costs
   1. Point
   2. Nada

What does “no closing cost HELOC” really mean?

A no-closing-cost HELOC means you don’t pay the typical closing costs associated with a home equity line of credit upfront when you close on the loan. Costs might still apply, but lenders collect fees in other ways.

Usually, that means one of the following:

1. The lender rolls closing costs into your loan (possibly as a one-time origination or first-draw fee).
2. You receive a higher interest rate to offset the closing costs covered by the lender.
3. Your lender applies a prepayment penalty if you pay off your HELOC early.

Your loan agreement should spell out how closing costs are applied and the amount you’ll pay for them.

Do all HELOCs have closing costs?

It’s not unusual for HELOCs to have closing costs; in that sense, they’re no different from other mortgage loans. Most of these fees are paid when you sit down at the closing table to sign off on your loan paperwork.

However, a few lenders offer true HELOCS without closing costs. See our breakdown below for more details about several lenders’ no-closing-cost HELOC offers.

What do closing costs include?

HELOC closing costs cover all the fees required to complete your loan and typically range from 2% to 5% of the loan amount.

Typical HELOC closing costs (paid at loan closing):

• Application fee: Charged to process your application.
• Appraisal fee: For determining property value.
• Title fee: Ensures there are no liens on your property.
• Recording fees: Paid to your local government to record the lien.
• Attorney’s fees: If required in your state.

Other HELOC fees to be aware of (not part of closing costs):

• Origination fee: Covers the cost of underwriting your HELOC. Often deducted from your available credit rather than paid at closing; may be a flat fee or a percentage of your credit line.
• Inactivity fee: Charged if you don’t use your HELOC.
• Membership or maintenance fee: Monthly or annual account charges.
• Cancellation or early closure fee: Charged if you close the HELOC early.
• Conversion fee: To change from variable to fixed rate (or vice versa).

How much do HELOC closing costs usually run?

If a HELOC has closing costs, they’re typically in the 2% to 5% range. That makes them relatively easy to calculate. Here are a few examples:

• $50,000 HELOC = $1,000 – $2,500
• $75,000 HELOC = $1,500 – $3,750
• $100,000 HELOC = $2,000 – $5,000

A no-closing-cost HELOC means you don’t need to pay these fees upfront.

HELOC vs. home equity loan closing costs

The typical closing costs for a HELOC and a home equity loan are similar. They generally cover the appraisal, title search, recording fees, and any attorney’s fees. However, HELOCs may also come with other fees that aren’t part of closing costs, such as membership or annual fees and the other separate fees listed above.

These charges may apply during the life of your HELOC, so it’s important to factor them in when comparing loan options.

Can you get a HELOC with no closing costs?

Yes, you can get a HELOC with no closing costs; just make sure you’re aware of other fees that may apply. For example, some lenders may charge a monthly or yearly fee. It’s possible to find a HELOC with no annual fee, which can save you money in the long run.

What does “no closing costs” include (and exclude)?

“No closing costs” doesn’t mean there are no fees; it simply means you don’t pay them out of pocket at closing. Many lenders still charge fees, whether it’s by rolling them into the loan, agreeing to a higher interest rate, or paying a prepayment penalty. 

Lenders may offer no closing cost HELOCs but still charge fees, such as an origination fee, annual membership fees, or inactivity fees.

Why do lenders advertise a no-closing-cost HELOC but still charge fees? It’s all about marketing. If you’re looking for a home equity line of credit, you may be drawn to one that advertises no closing costs over another loan.

Can you get a HELOC with no prepayment penalty?

Lenders make money from HELOC interest. If you pay off your line of credit early, the lender misses out on some of the interest you would have paid. Prepayment penalties help them recoup part of the loss. 

Some lenders, including Figure, Aven, and FourLeaf, offer HELOCs with no prepayment penalty, which means you’re not on the hook for any added fees if you decide to clear your balance early. This is a smart consideration if you might pay your line of credit in full before the end of the loan term.

Are there downsides to no-closing-cost HELOCs?

The downside to a no-closing-cost HELOC is that you might still pay the fees, just not to the lender at closing. If you roll the costs into your loan or get a higher interest rate, that can increase the amount you repay.

Say, for example, you need a $100,000 HELOC. You’re looking at two options:

• HELOC A has 3% closing costs and an 8.5% interest rate.
• HELOC B rolls the 3% closing costs into the loan and also has an 8.5% interest rate.

If you choose option A, you’ll pay $3,000 at closing and have a monthly payment of $708. You’ll pay $169,999 in interest.

With option B, you’ll pay nothing at closing, but you’ll borrow $103,000 instead. Your monthly payments will be $729, and you’ll pay $175,099 in interest. So you save $3,000 up front, but the loan costs you $5,000 more in the long run.

Who offers HELOCs with no closing costs?

A handful of lenders offer no-closing-cost HELOCs. Here’s a closer look at how each one works.

FourLeaf Credit Union

No Closing Costs + No Origination Fee

4.7 _/5

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About its no-closing-costs offer

FourLeaf, our team’s pick for the best credit union HELOC, stands out because you won’t pay any fees on a credit line up to $500,000 if you keep it open for at least three years. (The lender will require reimbursement if you close your credit line in the first 36 months.)

Not only does FourLeaf waive closing costs, but you also won’t owe application, origination, or appraisal fees. You can even convert some or all of your HELOC into a fixed-rate loan at no cost.

Rates (APR)	12-month introductory rate starting at 6.49% for VantageScores of 720 and up, with variable post-introductory rates starting at 7.75%
Funding amount	$10,000 – $1 million
Repayment terms	20 years
Min. credit score	670
Other fees	Must repay closing costs if you close your HELOC within 36 months

Figure

Best Overall

4.9 _/5

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About its no-closing-costs offer

Figure doesn’t charge fees when you close on the loan, but it assesses an origination fee, which could be as high as 4.99% and is deducted from your available credit (meaning if you open a $100,000 HELOC, you’ll start with $95,000 available). You’ll also be required to draw what’s left of your credit line after fees at closing—so if you don’t need the full amount right away, it might not be the best fit for you.

But Figure offers plenty to like, including fixed interest rates (rare with HELOCs), the ability to get a virtual appraisal (instead of in-person), and fast funding. If you’re planning to use the full amount right away, and especially if you qualify for a low origination fee, it’s an excellent option.

Rates (APR)	8.35% – 16.55% fixed
Funding amount	$15,000 – $750,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640, but 720+ is advised
Other fees	Origination fee up to 4.99%; Possible manual notarization and recording fees

Aven

Best Customer Reviews

4.8 _/5

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About its no-closing-costs offer

Aven’s HELOC is similar to Figure in a few ways: Its rates are fixed, you must draw the full amount (minus fees) at closing, and an origination fee will be subtracted from your available credit. But Aven’s origination fee is more straightforward: 4.90%. You might notice that this is almost as much as the high end of closing costs (5%), but you won’t pay it out of pocket when you close on the loan.

We’re fans of Aven’s lowest rate guarantee, its optional debt protection program through Securian, fast approval, and excellent reviews from thousands of customers. However, if your goal is to pay as little in fees as possible, you might qualify for better offers with other lenders—especially if you have excellent credit.

Rates (APR)	6.99% – 15.49% fixed
Funding amount	$5,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640
Other fees	4.90% first-draw fee

Regions Bank

3.5 _/5

View Rates

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About its no-closing-costs offer

Regions Bank states that it will pay “closing costs for lines of $250,000 or less, and up to $500 for lines greater than $250,000.” If your HELOC is terminated within 24 months of the opening date, you’ll repay these closing costs.

Its HELOCs have no annual fees, and you can convert all or a portion of your balance into a fixed-rate, fixed-term loan.

Rates (APR)	6-month introductory rate starting at 4.99%, with variable post-introductory rates of 8.25% – 15.75%
Funding amount	$10,000 – $500,000
Repayment terms	20 years
Other fees	Overlimit fee ($29); Late fee for 5% of the payment amount ($29 min, $100 max); Loan-in-a-Line (fixed rate) conversion fee ($100)

Alliant Credit Union

3.3 _/5

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About its no-closing-costs offer

Alliant offers HELOCs with no closing costs, no appraisal fees (if you qualify for an automated valuation), no application fees, no origination fees, and no prepayment penalties. However, you must join the credit union to apply.

Rates (APR)	6-month introductory rate starting at 3.99%, with variable post-introductory rates of 7.75% – 16.00%
Funding amount	$10,000+
Repayment terms	20 years
Min. credit score	620
Other fees	$1,000 fee (loans of $250,000+); $50 annual fee (waived first year); $200 early termination fee if closed within 36 months; Appraisal costs may apply if automated valuation isn’t possible or if required due to FEMA-declared disaster area; Lien satisfaction fees if applicable; $250 refinancing fee is credit limit increase is less than $10,000; Borrower pays applicable state/county fees and taxes

Truist

3.1 _/5

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About its no-closing-costs offer

Truist may cover closing costs on HELOCs of $500,000 or less in certain states, but Footnote 7 on the website implies that you may pay a higher rate if Truist covers the closing costs on lines of credit lower than $500,000. You’ll also need to repay those costs (up to $10,000) if you close the account within 36 months.

Rates (APR)	6-month introductory rate starting at 5.99%, with variable post-introductory rates of 7.50% – 14.85%
Funding amount	$15,000 – $1 million
Repayment terms	20 years
Other fees	$50 annual fee in select states, a $15 fixed-rate option setup fee, and potential state-specific charges.

What’s the lowest-cost HELOC available now?

• Overall, Bethpage Credit Union might be the sweet spot of no fees and a low rate, with its generous 12-month introductory rate of 6.49% for creditworthy borrowers and minimal fees, even beyond the waived closing costs.
• If you’re looking for a super low introductory rate on a no-closing-cost HELOC, Alliant Credit Union stands out. You could qualify for a fixed rate of 3.99% for the first six months, followed by a variable rate.
• Figure advertises the lowest HELOC rates, starting at 8.35% fixed. Just note that while you won’t owe Figure any closing costs, you might need to pay an origination fee to get the lowest rates possible for your credit score range.

How do you qualify for a no-closing-cost HELOC?

Lenders set HELOC requirements, but for the most part, they aren’t much different from what you’ll need to qualify for a traditional mortgage. To get a no closing cost HELOC, you’ll generally need good credit, a steady income, and a low debt-to-income ratio.

If you’re applying for a HELOC with a bank, you might already need to be a customer. Credit unions have membership requirements you’ll need to meet before you can apply for loans. 

Can you ask your lender to waive HELOC fees?

Sure, you can always ask. The worst a lender can say is no. But if the lender doesn’t explicitly offer that, your request may go unfulfilled. Researching no-closing-cost HELOC options can help you find a lender that fits your needs.

Do lenders waive fees or roll them in?

This depends on the lender. FourLeaf Credit Union, for example, actually waives closing costs on the first $500,000 of the HELOC. It doesn’t assess any other fees, as long as you keep the credit line open for at least 36 months.

Other lenders, such as Figure and Aven, won’t charge closing costs, but they charge an origination fee up to 4.99%, which is subtracted from your credit line and not paid out of pocket.

What is the best no-closing-cost HELOC alternative?

If you can’t qualify for a no-closing-cost HELOC because of your credit or income, a home equity agreement (HEA) could be an alternative. An HEA isn’t a loan; instead, you receive a lump sum in exchange for a share of your home’s future value. You typically have 10 to 30 years before you must settle the agreement, either by selling your home or buying out the investor’s share.

Unlike a HELOC, you don’t make monthly payments, and there are generally no traditional closing costs. However, HEAs can have other fees, and the overall cost can be significant depending on your home’s appreciation.

Point

Point offers HEAs for homeowners with credit scores as low as 500. You might be eligible to access up to $500,000 with a 30-year term before repayment is due.

• No traditional closing costs
• Fees to know: Processing fee of up to 3.9% ($1,000 minimum); escrow, title, and recording fees.

Nada

Nada’s HEA program, called Homeshares, works with homeowners who have at least 25% equity and can serve those with lower credit profiles. You can access up to $500,000 with a 10-year term before repayment.

• No traditional closing costs
• Fees to know: 4% – 5% origination fee; closing costs and third-party fees (title, inspection, notary, etc.)

Recap of HELOCs with no closing costs in 2025