Best HELOCs and Home Equity Loans for Veterans: Top Options in 2024

Accessing your home equity can be a smart way for veterans to fund home improvements, consolidate debt, or cover major expenses. While the VA doesn’t offer HELOCs or home equity loans, many lenders provide options tailored to veterans’ unique needs.

This guide highlights the best home equity lines of credit (HELOCs) and home equity loans for veterans, comparing rates, terms, and features to help you find the right fit. Whether you’re seeking flexible credit or predictable payments, we’ll walk you through top lenders and what makes them stand out.

Am I eligible for a HELOC for veterans?

To qualify for a HELOC as a veteran, you must meet specific criteria that vary by lender. Here are the most common requirements:

• Credit score: A minimum score of 620 to 680 is often required, though veteran-focused lenders may be more flexible.
• Debt-to-income ratio (DTI): Lenders prefer a DTI of 43% or lower, but alternative income verification methods may be available.
• Home equity: You’ll need significant equity in your home, often at least 15%.
• Property type: Primary residences are typically eligible, but some lenders may also allow HELOCs on secondary properties.

Best HELOCs for veterans

Veterans may find more flexible equity and loan-to-value (LTV) requirements with some lenders, which could result in higher borrowing limits. The three lenders below are available to current and former members of the military and their families.

HELOCs that cater to military members

Navy Federal Credit Union

3.9 _/5

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Why we like it for veterans

Navy Federal Credit Union is a financial institution serving the military and their family members. To become a member, you or your family member must have ties to the armed forces, Department of Defense, or National Guard. We like that the company has competitive rates for its lending products and lets you leverage almost all your home equity.

Navy Federal charges no application, origination, annual, or inactivity fees. It also has an interest-only option, which charges interest only on what you spend. The draw period on its HELOCs lasts 20 years, followed by a 20-year repayment period.

Funding times aren’t as fast as other options on this list, with an average processing time of 45 to 55 calendar days. However, this lender’s convenience and unique loan options make it worth considering.

• No closing costs
• Borrow up to 100% of your home’s equity
• No application or origination fees
• Access your funds with the Home Equity Line Platinum Credit Card

• Doesn’t disclose the highest possible interest rate

Rates (APR)	Starting at 7.34%
HELOC amounts	$10,000 – $500,000
Repayment terms	5, 10, 15, or 20 years

Eligibility requirements

Because Navy Federal is a credit union, you must become a member before applying for any product it offers. To become a member, you must be a veteran, retired service member, or Active Duty. Immediate family of current members are also eligible to join.

Navy Federal doesn’t disclose eligibility details, so you’ll need to speak to a representative or submit an application to find out more.

PenFed Credit Union

3.8 _/5

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Why we like it for veterans

PenFed is our top pick for fast funding. Its HELOC Express option allows you to access your money sooner than many other lenders, and we like that it doesn’t require you to use your money for a specific purpose.

PenFed HELOC Express lets you keep your current mortgage rate for its HELOC. If you are locked into a lower rate than those available today, that benefit could save you a significant amount. During the 10-year draw period, PenFed lets you make interest-only payments. You can switch from variable to fixed rates on some or all of your interest payments.

• Expedited closing in as little as 15 days
• No origination fees

Rates (APR)	Starting at 8.63%
HELOC amounts	$25,000 – $500,000
Repayment terms	10-year draw / 20-year repayment

Eligibility requirements

To qualify for a PenFed HELOC, you must: 

• Have a credit score of 700 or higher 
• Meet income requirements 
• Meet debt-to-income (DTI) requirements (not disclosed)

According to PenFed, borrowers in almost every state are limited to a maximum CLTV of 80%. 

To take out a HELOC from PenFed, your property must:

• Be your primary residence, and you must occupy it.
• Have four total units or fewer.
• Not be a mobile home, co-op, or timeshare.
• Not be a commercial property or undeveloped land.
• Not be for sale or under major renovation.

Armed Forces Bank

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Why we like it for veterans

Armed Forces Bank offers banking and financial services for active duty and retired military. However, membership is also open to civilians. This bank is our top pick for a low introductory rate. Like many lenders available to veterans, it lets you borrow a higher percentage of your home’s value than other banks.

• Offers low fixed introductory and regular rates for HELOCs
• Low or no closing costs
• Borrow up to 85% of your home’s value

• Not available in Texas

Rates (APR)	Starting at 5.99% for 6 months, then 7.74% variable
Draw period	10 years

Eligibility requirements

Armed Forces Bank offers a HELOC of up to $200,000 with a loan-to-value ratio of up to 85%. It also offers lines of credit of up to $250,000 with LTVs of up to 80%. While these limits are relatively low, it also lets you borrow up to 70% of your home’s value on loans over $250,000 with no specific limit on the loan amount.

Traditional HELOC lenders for veterans

Figure

Best Overall

4.9 _/5

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Why Figure is one of the best

Figure is our top choice for veterans seeking HELOCs due to its exceptional balance of efficiency, accessibility, and customer satisfaction. 

We like the lender’s streamlined online application process and rapid funding capabilities, which are beneficial for veterans who often appreciate straightforward, efficient financial services without unnecessary delays.

Figure supports its clients with flexible options that cater to a wide range of financial needs and circumstances. Its ability to offer significant lines of credit with competitive fixed rates makes it an excellent choice for veterans planning large projects or needing substantial financial resources. 

Figure requires borrowers to withdraw 100% of the credit line (minus fees), with the ability to redraw as they pay down the balance—so it won’t be a fit for you if you don’t plan to use most or all of your HELOC immediately.

• Apply online with approval in 5 minutes and funding in as little as 5 days
• Potential for low fixed interest rates depending on creditworthiness
• No closing costs

Rates (APR)	7.45% – 16.15%*
HELOC amounts	$20,000 – $400,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 20 years

Eligibility requirements

• Property must be a single-family residence, townhome, or planned urban developmen. Most condos are eligible properties
• Ineligible properties include co-ops, commercially zoned real estate, and others mentioned in the outline
• Title changes within the last 90 days or properties in below-average condition are also ineligible
• Eligible in 45 U.S. states and Washington, D.C. 
• You must have 30% or higher equity in your home
• Excluded states are Hawaii, Kentucky, New York, Texas, and West Virginia.
• Maximum loan-to-value (LTV): Up to 95% LTV—this is a combined LTV among all home loans
• Maximum debt-to-income: Up to 50%
• Minimum credit score: 640
• Minimum income: Not specified

Aven

Best Customer Reviews

4.8 _/5

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Why Aven is one of the best

Aven stands out with its fully digital application and approval process, making it one of the most convenient options for veterans seeking a HELOC. You can get approved in as little as 15 minutes, and funds are available in as few as three days. Aven offers fixed interest rates from start to finish, ensuring predictable payments throughout the loan term.

Similar to Figure, Aven requires a full draw of the credit line at closing, and availability is more limited.

• Offers lowest rate guarantee
• Optional debt protection program through Securian
• Excellent customer reviews from more than 3,800 customers

• Excluded states are CT, DE, GA, HI, ID, IN, MD, MA, MO, MT, NV, NY, RI, SC, TX, VT, WA, and WV

Rates (APR)	6.99% – 15.49%
HELOC amounts	$5,000 – $250,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 30 years

Eligibility requirements

• Maximum loan-to-value (LTV): Up to 89%
• Minimum credit score: 640

Bethpage FCU

Best Credit Union

4.7 _/5

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Why Bethpage is one of the best

Bethpage Federal Credit Union is the go-to for veterans who prefer working with a community-oriented institution that values personal relationships and localized service. 

As a credit union, Bethpage offers more than just financial products; it provides a community-focused approach that often results in better rates and more personalized service. This aspect is beneficial for veterans who appreciate a more tailored banking experience.

Bethpage requires an initial draw of $25,000 from the credit line to qualify for its low introductory rate. The competitive rates and favorable terms are part of the credit union’s commitment to serving its members’ best interests, including those of veterans. By choosing Bethpage, veterans can enjoy the benefits of being part of an institution that prioritizes their financial well-being and supports their unique needs.

• Competitive rates and terms exclusively for members, including veterans
• No application, origination, or appraisal fees

Rates (APR)	12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rate
HELOC amounts	$10,000 – $1 million
Repayment terms	Draw: 10 years / Repayment: 20 years

Eligibility requirements

Bethpage doesn’t disclose every eligibility requirement, including which properties qualify and the income or DTI you need to be approved. However, several eligibility requirements are listed on the Bethpage website.

• For Bethpage’s introductory rate, the maximum LTV is 75%
• Minimum credit score for borrowers is 670
• Membership at Bethpage is required
• Hazard insurance and/or flood insurance is required for loans secured by property

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Best HELOCs

Pros and cons of HELOCs for veterans

These are the benefits of veteran-specific HELOCs:

Pros

• Flexible terms

  Many lenders offer interest-only payments during the draw period, which can lower costs for veterans on fixed incomes.

• Higher LTV options

  Some veteran-focused lenders allow borrowing up to 95% of your home’s value.

• Military benefits

  Veteran-specific lenders may waive fees, offer competitive rates, or provide additional benefits like expedited processing.

• Accessible funds

  Useful for covering variable expenses, such as home improvements or medical costs.

Cons

• Variable rates

  HELOC rates often fluctuate, which could strain budgets if interest rates rise.

• Limited availability

  Some lenders may not operate in all states or serve all property types.

• High equity requirement

  Veterans must have significant home equity, making it less accessible for newer homeowners.

What are the best home equity loans for veterans?

Home equity loans can be a solid option for veterans who need a lump sum for a major expense, such as home renovations, debt consolidation, or unexpected costs. Unlike many HELOCs, home equity loans offer fixed rates and fixed monthly payments, providing predictability.

Navy Federal offers a military-specific home equity loan in addition to its HELOC.

For other, more general home equity loan companies, check out our list of the best home equity loans.

Consider a VA cash-out refinance

A VA cash-out refinance allows veterans to replace their mortgage with a new VA-backed loan while borrowing against their home’s equity. Unlike HELOCs or home equity loans, a VA cash-out refinance gives you a lump sum of cash at closing and consolidates your mortgage into a single payment.

Benefits of a VA cash-out refinance

Here’s why we think a VA cash-out refinance is a solid option to consider:

• No private mortgage insurance (PMI): VA loans don’t require PMI, potentially saving veterans hundreds of dollars per month.
• Competitive interest rates: VA refinance rates are typically lower than conventional loans, making this a cost-effective option.
• High loan-to-value ratios (LTVs): You can borrow up to 100% of your home’s value, depending on lender requirements.
• Flexible use of funds: You can use the cash for just about anything, from paying off debt to making home improvements.

How does a VA cash-out refinance differ from home equity loans and HELOCs?

These are the main differences between the products:

• Repayment structure: A VA cash-out refinance replaces your current mortgage, while HELOCs and home equity loans are separate from your primary mortgage.
• Interest rates: VA loans tend to have lower rates and could be fixed or variable, but fixed rates are more common. Most home equity loans have fixed rates, and HELOCs may have variable rates.
• Flexibility: HELOCs offer ongoing access to funds, whereas a VA cash-out refinance and home equity loan provide a one-time lump sum.

Home equity loan	HELOC	VA cash-out refinance
Funds in a lump sum	Ongoing line of credit	Lump sum
Fixed rate	Variable or fixed	Fixed or variable (often low)
Repayment is separate from mortgage	Separate from mortgage	Replaces current mortgage
Best for one-time expenses	Best for ongoing projects	Best for consolidation mortgage & equity
Borrow up to 90% of home’s value	Up to 90%	Up to 100%

What lender should veterans choose? 

For veterans with good credit who plan to use the full line of credit immediately, Figure and Aven are excellent choices. Both lenders offer fast funding, fixed rates, and fully digital application processes that streamline the borrowing experience.

While Figure and Aven are top choices for veterans with solid credit who need immediate access to their funds, choosing the right HELOC depends on your unique financial situation and priorities. If you’re ready to get started, check out how to apply for a HELOC.

Veterans may face credit score challenges simply because their history may not be as long as a civilian who has had an ongoing credit line since their early 20s. A veteran may also face challenges with their debt-to-income ratio.

Now that interest rates are higher, mortgage and HELOC payments are higher as well. Therefore, if a veteran is working on increasing their income and credit score, they may not have the same debt-to-income ratio as a civilian. This could either increase their interest rate offering at a non-veteran bank or simply have them be denied altogether. This is why it is crucial to understand each institution’s offerings and how they qualify their borrowers.

Natalie Slagle, CFP®

What are the best HELOC rates for veterans?

Rates are an important consideration when reviewing HELOC offers. These rates can change often, but these lenders offer some of the lowest rates as of September 2024:

• Fixed APR: Figure (8.60% – 17.25%) and Aven (6.99% – 15.49%)
• Variable APR: Armed Forces Bank (7.99%)
• Introductory APR: Armed Forces Bank (5.99% for 6 months); Bethpage Federal Credit Union (12-month intro rate of 6.99% for VantageScores of 720 and up)

Whether the rate is fixed or variable can also influence how much you pay in the long run. For fixed-rate HELOCs, the rate will stay the same for the entire time the HELOC is open. If you open an account when interest rates are low, a fixed-rate HELOC can be a smart option.

With a variable-rate HELOC, the interest rate changes based on market conditions. This can be a good choice if you open the HELOC when interest rates are high.

FAQ

Can veterans use a VA loan to access home equity?

No, the VA does not offer HELOCs or home equity loans, but veterans can use a VA cash-out refinance to access their home equity.

Can I get a HELOC if I have a VA loan?

Yes, you can take out a HELOC alongside a VA loan as long as your combined loan-to-value ratio (CLTV) meets lender requirements.

Are HELOC interest payments tax-deductible for veterans?

HELOC interest is deductible only if the funds are used for home improvements and you itemize deductions when you file your taxes. Check with a tax professional for guidance.

Do HELOC lenders require VA eligibility verification?

No, HELOCs are provided by private lenders and don’t require VA eligibility verification like VA loans.

How we selected the best HELOCs for veterans

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best HELOCs for veterans