Best Home Equity Line of Credit (HELOC) Lenders in July 2026

A home equity line of credit (HELOC) 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. Compare our top picks below to find the right fit for you.

Reviews of the best HELOC lenders

LendEDU’s picks for the best HELOC lenders are based on interest rates, loan terms, ease of applying, funding speed, and overall borrower experience.

A HELOC lets you tap into the equity you’ve built in your home as flexible cash. This cash is commonly used for home improvements, consolidating high-interest debt, or covering large one-off expenses. Rates, fees, draw periods, and application requirements vary from lender to lender, so we did the digging to help you find a strong fit.

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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 for them. Our latest analysis reviewed 900 total data points across 36 lenders and financial institutions, evaluating 25 lender metrics for each.

We score and rank home equity lenders using five weighted categories designed to measure value, convenience, and transparency. Here is how we evaluate each category to determine our final star ratings:

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 and fees, flexible repayment plans, and unique benefits that support borrowers throughout repayment.

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What are HELOC requirements?

To qualify for a 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.

What credit score do you need for a HELOC?

Most HELOC lenders require a minimum credit score of 620, but borrowers with scores of 720 or higher typically get better rates and easier credit approval.

Lenders reserve their lowest annual percentage rates for borrowers with a strong credit history and proven repayment behavior, making 720 the standard threshold for competitive pricing.

If your score falls below 720, you may face a higher rate, a lower credit limit, or stricter equity requirements. Lenders also weigh other factors, like your debt-to-income ratio and how much equity you hold. 

For a full breakdown of your options, see our guide to HELOCs for fair credit scores.

Tips for getting the best HELOC rate

You get the best HELOC rate by strengthening your borrower profile before you apply and comparing offers from multiple lenders.

A few moves can lower the rate you qualify for:

• Improve your credit score before applying: Pay down your balances and fix any reporting errors. A higher score signals lower risk and unlocks better pricing.
• Reduce your DTI: Lenders look closely at your debt-to-income ratio (DTI), so paying off existing debt can improve the rate you’re offered.
• Compare multiple lenders: Rates and fees differ from one lender to the next. Prequalify with a few before you commit.
• Choose the right loan-to-value ratio (LTV): Borrowing a smaller share of your home’s value often earns a better rate, since you keep your credit line amount in proportion to your equity.
• Consider rate lock options: Some lenders let you lock in your rate at account opening, which protects your budget if rates climb.

HELOC type comparisons: How to choose the best company for a HELOC lender

Finding the best company for a HELOC means evaluating more than just the advertised rate. HELOC rates, fees, draw terms, and qualification standards vary widely across lenders. The following are important considerations when comparing HELOC lenders and rates so you can 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.

Fixed vs. variable rates

Fixed-rate HELOCs can be a good fit if you want predictable monthly payments and less exposure to rate changes. With some lenders, 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 and base their 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.

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.

What is the draw period and repayment period on a HELOC?

Every HELOC runs in two stages: a draw period, which is usually 5 to 10 years, when you can borrow and pay back as you like, followed by a repayment period of 10 to 20 years.

During the draw period, you can pull from your line as needed and often make interest-only payments. Once it ends, the line closes to new borrowing and you repay the principal plus interest, so your monthly payment typically rises. Draw lengths vary by lender, with some stretching the draw period to 25 years, which keeps your access open far longer than the standard term.

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.

Are online HELOC lenders safe compared to local?

Online HELOC lenders are generally safe and reliable, often offering lower fees and faster approvals than traditional banks. Many of the HELOC best lenders now operate fully online. 

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.

What can I use a HELOC for?

A HELOC works well when you need flexible access to funds over time 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

If gathering paperwork feels like a hurdle, borrowers who want a lighter documentation process can look into a no-doc HELOC, which streamlines the verification step.

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.

Homeowners who want cash without taking on a new monthly payment sometimes consider a sale-leaseback, which lets you sell your home and rent it back.

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.

HELOC vs. a home equity loan

A HELOC is a revolving line of credit you draw from as needed, while a home equity loan gives you a single lump sum upfront at a fixed rate.

A home equity loan carries a fixed monthly payment, so you always know what you owe. A HELOC lets you borrow and repay during the draw period, so your payment can change depending on your balance and rate. A home equity loan is a good match for a known, one-time cost, while a HELOC suits ongoing or hard-to-predict expenses. 

For a closer look at fixed-rate options, check out our researched recommendations for the best home equity loans.

HELOC vs. HEA

A HELOC is borrowed money you repay with interest, while a home equity agreement (HEA) — which can also be known as a Home Equity Investment (HEI) or Home Equity Sharing Agreement (HESA) — gives you cash today in exchange for a share of your home’s future value.

Because an HEA isn’t a loan, it doesn’t add a new monthly payment or count as new debt. Repayment happens when you sell the home or buy out the agreement at the end of its term. An HEA can suit homeowners who want access to their equity without added payments, while a HELOC fits those comfortable with regular repayment. 

To compare the two approaches more in depth, see our breakdown of HEI vs. HELOC and our picks for the best home equity agreement.

HELOC vs. cash-out refinance

A HELOC is usually the better choice when you want flexible access to funds or already hold a low mortgage rate, while a cash-out refinance can make more sense when you need a large lump sum and current rates are at or below your existing rate.

• Structure: A HELOC adds a revolving line of credit on top of your current mortgage, while a cash-out refinance replaces your existing mortgage with a new, larger one and pays you the difference.
• When a HELOC makes sense: Rising rates favor a HELOC, since you keep your original mortgage rate untouched and borrow only what you need.
• When a cash-out refinance makes sense: A large, one-time funding need can favor a refinance, especially if you can lock a rate at or below what you currently pay.
• Cost considerations: A cash-out refinance often carries higher closing costs because it’s a full mortgage, while a HELOC typically has lower upfront costs but a variable rate that can rise.

FAQ

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Keep Learning about HELOCs

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>