A no-closing-cost HELOC lets you open a home equity line of credit without paying any upfront fees at closing. Instead of charging you at the closing table, lenders recover those costs in other ways—often through a higher rate, an origination fee, or requirements to keep the line open for a certain period.
Below, we break down which lenders offer no-closing-cost HELOCs and how each structures its fees, rates, terms, and loan limits.
Aven charges a first-draw fee of 4.90%.
Table of Contents
- Do HELOCs have closing costs?
- Can I get a HELOC with no closing costs?
- The best no-closing-cost HELOCs
- Why are there closing costs on a HELOC, and how much are they?
- What do HELOC closing costs include?
- Are there no-closing-cost home equity loans?
- What’s the lowest-cost HELOC available now
- Downsides of HELOCs without closing costs
- How do you qualify for a no-closing-cost HELOC?
- What is the best no-closing-cost HELOC alternative?
- Recap of HELOCs with no closing costs
Do HELOCs have closing costs?
Yes, there are usually closing costs on a HELOC. Because the credit line is secured by your home, lenders must complete several legal and administrative steps before issuing the loan. That can include verifying your home’s value, checking the property title, and recording the lender’s lien with your local government.
Those steps create fees, which are typically paid when the HELOC closes. However, not every lender requires borrowers to pay these costs upfront. Some offer no-closing-cost HELOCs.
Can I get a HELOC with no closing costs?
Several lenders offer HELOCs without upfront closing costs. But “no closing costs” doesn’t necessarily mean the costs disappear. Instead, lenders structure the loan so those expenses are covered in other ways.
A no-closing-cost HELOC means you won’t pay anything at the closing table, but the costs of setting up the line are still accounted for within the loan. Lenders typically do this in a few ways:
- Charging a HELOC origination fee. This fee covers the cost of underwriting and setting up the credit line. Instead of paying it out of pocket, it’s often deducted from your available credit.
- Rolling the costs into the loan through a built-in fee or adjustment
- Offering the line with a higher interest rate
- Requiring you to keep the HELOC open for a minimum period or repay the lender’s costs if you close the account early
Some lenders also offer no-closing-cost HELOCs without prepayment penalties, which can be helpful if you plan to pay off the line early. Your loan agreement will outline exactly how the lender handles these costs.
The best no-closing-cost HELOCs
A handful of lenders offer no-closing-cost HELOCs. Here’s a closer look at how each one works.
FourLeaf Credit Union
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 |
| Prepayment penalty? | No |
| Other fees | Must repay closing costs if you close your HELOC within 36 months |
Figure
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 |
| Prepayment penalty? | No |
| Other fees | Origination fee up to 4.99%; Possible manual notarization and recording fees |
Aven
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 |
| Prepayment penalty? | No |
| Min. credit score | 640 |
| Other fees | 4.90% first-draw fee |
Alliant Credit Union
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 |
| Prepayment penalty? | No |
| 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 |
Regions Bank
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 |
| Prepayment penalty? | Yes, except in Texas |
| 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) |
Truist
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 |
| Prepayment penalty? | No but must repay any lender-paid closing costs if you close HELOC within 3 years |
| Other fees | $50 annual fee in select states, a $15 fixed-rate option setup fee, and potential state-specific charges. |
Why are there closing costs on a HELOC, and how much are they?
HELOCs have closing costs because lenders must complete several legal and administrative steps before issuing a credit line secured by your home. The closing costs cover all the fees required to complete your loan. These fees typically add up to 2% to 5% of the credit line. Here are a few examples of how that looks on different HELOC amounts.
| HELOC amount | Closing cost amount |
| $50,000 | $1,000 – $2,500 |
| $75,000 | $1,500 – $3,750 |
| $100,000 | $2,000 – $5,000 |
What do HELOC closing costs include?
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).
Note: Even if a lender advertises “no closing costs,” you may still pay other fees, such as an origination fee—sometimes as high as 4.99% of your credit line. While not part of closing costs, this fee reduces your available credit and can have a similar financial impact.
In Southeastern Pennsylvania, banks and credit unions generally don’t charge fees for HELOCs, except one public bank, which charges $500 if you close the HELOC within the first three years (prorated). Another bank will pass along the court recording costs, which are $99. I have not seen any other banks charge closing costs. However, some states (specifically Maryland) will charge a tax (0.5% to 1% of the limit).
Are there no-closing-cost home equity loans?
Yes, some lenders offer a home equity loan with no closing costs. Similar to no-closing-cost HELOCs, this usually means you won’t pay the typical upfront fees, such as appraisal, title search, recording, or attorney fees, when the loan closes.
However, the costs of setting up the loan are rarely eliminated entirely. Instead, lenders may recover them through a slightly higher interest rate, by rolling the costs into the loan balance, or by requiring you to keep the loan open for a minimum period.
Closing costs for home equity loans and HELOCs are generally similar because both are secured by your home and require many of the same steps, including verifying the property value and recording a lien. As a result, the same trade-offs often apply when a lender advertises a home equity loan with no closing costs.
What’s the lowest-cost HELOC available now
- Overall, FourLeaf 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.
Downsides of HELOCs without closing costs
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.
Compare the difference in lower interest rate times your expected average balance over the first few years to see whether the interest savings is worth it. We do this all the time when comparing annual fees with lower interest rates. The decision depends on the expected loan balance.
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.
You could also consider an unsecured loan or even a 401(k) loan.
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 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
Aven charges a first-draw fee of 4.90%.
About our contributors
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Written by Rebecca Lake, CEPF®Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance.
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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.
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Reviewed by Michael Menninger, CFP®Michael Menninger, CFP®, is the founder and president of Menninger & Associates Financial Planning. He provides his clients with financial products and services, always keeping their individual needs foremost in mind.