Best HELOC Lenders and Rates in January 2026

A home equity line of credit can give you access to cash for debt consolidation, home improvements, or other expenses. Knowing how to shop for a HELOC matters if you hope to get the lowest rate, so we reviewed HELOC lenders to find the best.

Table of Contents

1. Reviews of the top HELOC lenders
2. HELOC comparisons: How to choose a lender
   1. Introductory rates
   2. Fixed vs. variable rates
   3. Rate discounts
   4. Fees and closing costs
   5. Maximum LTV ratio allowed
   6. Convertibility
   7. Other considerations
3. Do HELOC lenders and terms vary by state?
   1. Online HELOC lenders vs. local
4. HELOC uses
5. How to apply
6. Alternatives
7. FAQ
8. How we chose the best home equity line of credit lenders

Reviews of the top HELOC lenders

A home equity line of credit, or HELOC, lets you tap into the equity you’ve built in your home and use it as flexible cash. People commonly use HELOCs for things like home improvements, consolidating high-interest debt, or covering large expenses without taking out a brand-new loan.

The challenge is that not all HELOCs are created equal. Rates, fees, draw periods, and application requirements can vary a lot from one lender to the next. We spent the time comparing the options that actually matter to borrowers, so you don’t have to.

Below, you’ll find our picks for the best HELOC lenders, based on real factors like interest rates, loan terms, ease of applying, funding speed, and overall borrower experience.

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Best no-fee HELOCs

HELOC comparisons: How to choose a lender

Getting the best rate (and, thus, lowest cost) on a HELOC is usually the ultimate goal when shopping around and comparing lenders. There is lots to think about to achieve that goal. The following are important considerations when comparing HELOC lenders and rates so you find the best fit.

Introductory rates

Some HELOC lenders offer introductory rates that can lower your costs early on. These promotions usually give you a fixed, below-market rate for a limited time before the line switches to a variable rate.

• Alliant Credit Union earns our Best Intro Rate designation with a 6-month introductory rate starting at 4.99%.
• FourLeaf offers a longer 12-month introductory rate at 6.99% for borrowers with VantageScores of 720 or higher.

Fixed vs. variable rates

Fixed-rate HELOCs can be a good fit if you want predictable payments and less exposure to rate changes. With lenders like Figure and Aven, each draw can be locked in at its own fixed rate, so your payment stays the same for that portion of the balance.

Variable-rate HELOCs typically start lower and can be appealing when interest rates are down, but the rate can change over time, which means your payment can too.

Rate discounts

Many HELOC lenders offer rate discounts that can reduce your interest cost over time. Common discounts include enrolling in autopay or making payments from a lender’s account.

For example, FourLeaf offers a discount when you pay from a FourLeaf account. When comparing HELOCs, look for discounts you can easily qualify for to keep your rate as low as possible.

Fees and closing costs

Closing costs are upfront fees tied to opening a HELOC and can include things like appraisals, origination fees, and third-party charges. These costs often range from a few hundred to a few thousand dollars, depending on the lender. Some lenders, including Figure and FourLeaf, don’t charge closing costs, which can lead to meaningful savings.

Maximum LTV ratio allowed

Loan-to-value, or LTV, refers to how much you can borrow compared to your home’s value. With most HELOC lenders, that cap falls between 80% and 85% of your home’s current value.

Some lenders take a different approach. RenoFi bases its limit on your home’s after-renovation value, allowing borrowing up to 95%, which can significantly increase how much you can access.

Convertibility

If you’re considering a variable-rate HELOC, it’s worth checking whether you can switch to a fixed rate later. Not all lenders offer this option, but it can provide flexibility if rates rise after you open your line.

Trovy is one example of a lender that allows borrowers to convert their balance to a fixed rate, which can add predictability over time.

Other considerations

It’s also important to look beyond rates and LTV limits. Details like loan size, credit requirements, timelines, and repayment structure can directly affect how usable and affordable a HELOC is for your situation.

That includes:

• Minimum and maximum loan amounts
• Minimum credit score and income requirements
• Application, approval, and funding speed
• Draw periods
• Repayment terms
• Fees

The easiest way to see what different lenders offer is to use our top-rated marketplace, LendingTree, to compare rates and terms.

Do HELOC lenders and terms vary by state?

Yes, HELOC lenders and terms can vary by state. Availability, interest rates, fees, and borrowing limits often depend on state regulations and local market conditions. Because of this, the best HELOC option in one state may look different in another.

Check out our state-specific HELOC guides to help you understand what’s available where you live.

Is there a downside to going with online HELOC lenders vs. local?

Online HELOC lenders can offer lower fees, faster applications, and more flexible options than traditional banks, but they aren’t perfect for everyone. The biggest trade-off is support. If you prefer face-to-face guidance or want to sit down with a loan officer, an online lender may feel less personal.

Some online lenders also rely more heavily on automated underwriting, which can make it harder to explain unique income situations or borderline credit profiles. That said, many online HELOC lenders make up for this with clearer pricing, fewer fees, and a faster overall process.

For borrowers who are comfortable managing the process digitally, online HELOC lenders are often just as reliable as banks and credit unions, and in many cases, more convenient.

How to qualify for a HELOC

HELOC approval comes down to a few core factors:

• Credit score: While some lenders advertise minimums in the low 600s, strong credit (720 or higher) typically leads to easier approval and better rates
• Income and DTI: Lenders want to see enough income to comfortably handle payments
• Home equity (LTV): Most lenders cap borrowing at 80% to 85% of your home’s value

Use the calculator below to estimate how much you might be able to borrow based on your home value, mortgage balance, and target LTV.

If you want a deeper breakdown of lender requirements and what to expect during approval, see our full guide to home equity loan and HELOC qualification requirements.

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What can I use a HELOC for?

A HELOC works well when you need flexible access to funds rather than a one-time lump sum. Borrowers often use it for things like home repairs, debt consolidation, education costs, or covering unexpected expenses.

Because your home secures the line of credit, how you use a HELOC matters. Some uses can strengthen your finances or add home value, while others can introduce unnecessary risk.

For a full breakdown of the best and worst ways to use a HELOC, including examples of when it makes sense and when it doesn’t, see our guide on HELOC uses.

How to apply for a HELOC

Applying for a HELOC generally follows a few simple steps:

1. Estimate how much you can borrow based on your home equity, credit, and income
2. Compare lenders and rates, often by prequalifying online
3. Submit required documents to verify income, assets, and homeownership
4. Complete a home valuation, which may be automated or require an appraisal
5. Finalize approval and access your line of credit

The video above walks through the process visually. For a deeper, step-by-step breakdown, see our full guide on how to apply for a HELOC.

Alternatives to a HELOC

A HELOC isn’t the right fit for every borrower or every property. Some homes don’t qualify, and some borrowers prefer options that don’t use their home as collateral or offer more predictable repayment.

Common alternatives include home equity loans, home equity investments, personal loans, and credit cards, each with different trade-offs around rates, risk, and repayment structure. The right option depends on how much you need to borrow, how you plan to use the funds, and how comfortable you are using your home as collateral.

For a side-by-side breakdown of home equity and non-equity alternatives, including when each option makes sense and when it doesn’t, see our full guide to HELOC alternatives.

FAQ

What is the easiest HELOC to apply for?

Trovy is one of the easiest HELOC options to apply for, especially if you want a simple, digital experience. The application is fully online, there’s no required upfront draw, and funds can be available within a few days. Because Trovy works more like a credit card backed by your home, the process tends to feel more straightforward than a traditional HELOC.

That said, Trovy will still review key details such as your credit profile, available home equity, and property eligibility. While the process is streamlined, approval isn’t guaranteed, and requirements can vary by state.

Which HELOC has the highest LTV?

LTV stands for loan-to-value ratio. It’s the percentage of your equity that lenders will allow you to borrow with a HELOC. Most lenders allow 85% LTV. Aven allows for 89% LTV, and RenoFi allows you to borrow up to 95% of your home’s post-renovation value if you’re using the HELOC for home improvements.

What is the best HELOC with no closing costs?

The HELOCs we recommend without closing costs are Figure, Aven, and FourLeaf. This policy benefits borrowers because closing costs can be 2% to 5% of a loan amount. 

FourLeaf’s no-closing-costs policy applies to lines of credit under $500,000. Figure may charge an origination fee of up to 4.99%, but you won’t pay closing costs. And with Aven, you’ll pay a 4.90% first-draw fee.

What is the best HELOC with no origination fees?

FourLeaf and Trovy are both good options if you want a HELOC with no origination fees. Since origination fees can be as high as 5% of the loan amount, choosing a lender that waives them can result in meaningful upfront savings.

What is the best HELOC with no annual fees?

None of our highest-rated HELOC lenders—Figure, Aven, and FourLeaf—charge annual fees.

How do I know if I got a good HELOC rate?

The simplest way to evaluate whether a HELOC rate is “good” is to compare it to HELOC rates from other lenders.

However, it’s essential to remember that what constitutes a good rate for you may differ from someone else. Your credit scores and income can influence the rates you pay. The best HELOC rate is the lowest one you can be approved for based on your credit and other qualifications, considering what fits in your budget.

Do interest-rate hikes affect my HELOC rate?

Interest-rate hikes can affect your HELOC rate if you have a variable-rate loan. Variable-rate HELOCs are tied to an index rate; when that index rate goes up, the rate on your HELOC can also increase. HELOCs are indexed to the prime rate, which follows movements in the federal funds rate. 

The federal funds rate is the rate at which banks lend to one another overnight. When the Federal Reserve adjusts the federal funds rate up or down to steer economic policy, HELOC rates can follow suit. 

How long does it take to get funds from a HELOC?

The time it takes to get HELOC funds after approval can vary by lender—from a few days to several weeks. Funding may be faster with online HELOC lenders versus traditional banks or credit unions. 

How we chose the best home equity line of credit lenders

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 36 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 data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. 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.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, flexible repayment plans, and unique benefits that support borrowers throughout repayment.

¹ <sub>[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower must meet credit and loan program requirements, including (but not limited to): 1) maximum Combined Loan-to-Value (CLTV) of 75%, 2) minimum VantageScore 4.0 credit score of 720 3) borrower must take an initial draw of $25,000 and maintain this balance for 12 months, 4) borrower must have automatic transfers from a FourLeaf personal savings or checking account for the monthly HELOC payments, and 5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. The introductory rate applies to the variable line in use only and is not applicable to any Fixed-Rate Loan Option, (see below)[3]. Loan amounts over $500,000 are not available for the introductory rate. For Closing costs, see below[2].

[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.50% as of 7/10/2025. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 7/10/2025 = 7.50%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening, and automatic transfers from a FourLeaf personal savings or checking account.

Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.

[3] A Fixed-Rate Loan Option (FRLO) allows you to convert an outstanding variable rate HELOC balance(s) to a fixed rate loan(s), which results in fixed monthly principal and interest payments at a fixed interest rate. A FRLO is optional and is available at the time of disbursement (account opening), or during the 10-year Draw Period. Borrowers may only have a maximum of three (3) FRLOs open at any one time. The minimum amount for each FRLO is $10,000. The minimum loan term is 5-years, and the maximum term cannot exceed the account maturity date. If you choose to convert any portion of your balance to a FRLO, the APR will be the U.S. Prime Rate as published in the Wall Street Journal that is in effect at the date of conversion, plus a margin. The margin applied will be based on your credit history, CLTV ratio, and lien position at the time of application and the term selected for the FRLO. Rates for a FRLO are typically higher than the variable rates on the HELOC account.</sub>