Best HELOC Lenders and Rates

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.

Reviews of the best HELOC lenders

We created a rating system for getting a HELOC that considers critical factors, such as interest rates, eligibility requirements, loan-to-value ratios, loan amounts, draw periods, repayment details, and minimum credit score requirements.

Here’s a summary of our recommendations for the best HELOC companies:

• Best overall: Figure
• Best for large HELOCs: Bethpage
• Best marketplace: LendingTree

Figure

Best Overall

4.9 _/5

LendEDU Rating

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Why Figure is one of the best

Figure is our choice as the best overall home equity line of credit, thanks to its speedy approval and funding process. The application process is completed online, so you don’t need to meet with a loan officer in person. You can get approved in minutes.

Eligible homeowners can borrow up to $400,000, with the option to redraw up to 100%. Once approved, funding can be available in as little as five days. Figure offers online and video notary support, with an average response time of less than 45 seconds.

There are no closing costs for a Figure HELOC and no out-of-pocket costs. HELOC rates are fixed, and you can check your rate without affecting your credit score. Its HELOCs are available in most states, and you can borrow against a primary home, second home, or investment property.

• All HELOCs come with a fixed rate
• 100% online application and appraisal
• Receive funds in as little as five days
• Redraw up to 100% of your funds
• Check your rate without affecting your credit score

• Charges an origination fee
• The full loan amount will be drawn at origination

Rates (APR)	7.45% to 15.55%
Loan Amounts	$20,000 – $400,000
Repayment Terms	Draw: 5 years / Repayment: 5, 10, 15, or 20 years

Includes autopay and credit union membership discounts, as well as payment of an origination fee in exchange for a reduced APR. Terms and conditions apply. Visit Figure.com for further details. Figure Lending LLC is an equal opportunity lender. NMLS #1717824

Eligibility requirements

Figure has a few requirements for homeowners and their properties to be accepted for a HELOC.

Applicants:

• Have a credit score of 680 or above.
• Name must appear in the country records as the property owner.
• Must be employed, self-employed, or retired.

Properties:

• Be a single-family residence, townhouse, planned urban development (PUD), or condo.
• Can be the applicant’s primary or secondary residence.
• No title change in the preceding 90 days.

Bethpage

Best for Large HELOCs

4.7 _/5

LendEDU Rating

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Why Bethpage is one of the best

You might be looking for the best bank for a HELOC, but don’t count out credit unions. Bethpage Federal Credit Union offers variable-rate HELOCs with an option to fix full or a portion of the line, with no closing costs² or hidden fees. Bethpage HELOCs have a minimum amount of $10,000 and a maximum of $1 million.

The credit union offers a low fixed introductory APR on HELOCs of $25,000 or more for VantageScores of 720 and up¹. After 12 months, your HELOC converts to a variable rate. You also have the option to convert a variable-rate loan balance to a fixed rate³, which can help you lock in predictable payments. Ensure you consider the variable-rate payments and current interest rates. Keep track of timing and steps to lock in a fixed interest rate when the option becomes available.

Rate discounts are available if you schedule payments from a Bethpage personal savings or checking account. You must start an application to see what rates you might qualify for. Bethpage doesn’t disclose income or debt-to-income (DTI) requirements online, but it has a minimum credit score of 670.

• Low, fixed interest rate for the first 12 months
• $0 in closing costs
• $0 in application, origination, and appraisal fees
• Ability to convert portions of your HELOC to fixed-rate loans

• Funds available within 35 days, on average
• No prequalification form with a soft credit check

Rates (APR)	12-month intro rate of 6.99% for VantageScores of 720 and up1; then a variable rate
Loan Amounts	$10,000 – $1 million
Repayment Terms	Draw: 10 years / Repayment: 20 years

Eligibility requirements

Bethpage has several requirements you must meet to be eligible for a HELOC, but it doesn’t disclose them in detail on its website. It recommends you speak to a home lending specialist. We know that applicants must have a credit score of 670 or above.

LendingTree

Best Marketplace

4.5 _/5

LendEDU Rating

View Rates

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Why LendingTree is one of the best

LendingTree lets you compare lenders offering HELOCs and home equity loans with one simple online form that doesn’t affect your credit score.

The terms available will depend on the lenders you’re matched with, but LendingTree says that you may receive up to $2 million in funds with repayment terms from five to 30 years.

• Compare offers from multiple lenders
• No costs to submit an online form
• No impact on your credit for checking offers

• Only matches you with its partner lenders

Rates (APR)	Varies by lender
Loan Amounts	$10,000 – $2 million
Repayment Terms	Draw: 2 – 20 years / Repayment: 5 – 30 years

Eligibility requirements

LendingTree isn’t a lender itself, so there are no eligibility requirements for comparing lenders in its network. Its website notes that most borrowers have a minimum credit score of 620 or higher, a debt-to-income ratio below 43%, and a loan-to-value ratio below 95%.

Read More

Best no-fee HELOCs

How to get the best HELOC rates

Getting the best rates on a home equity line of credit begins with research. The following are important considerations when comparing HELOC rates.

• Introductory rates. Some lenders may offer home equity loan and HELOC promotions or make borrowing easier for veterans. These include introductory or teaser rates for HELOCs. These rates are often good for the first 12 months. If you’re tempted by an introductory rate, remember to consider what the rate will adjust to later and whether there’s a minimum loan requirement to qualify. 
• Fixed vs. variable rates. A fixed-rate HELOC could make sense if you want predictable payments and don’t want to worry about rate adjustments making your loan more expensive. On the other hand, variable-rate HELOCs can be more attractive when rates are low.
• Rate discounts. HELOC lenders can use rate discounts as an incentive to attract borrowers. When comparing HELOC options, consider what discounts you might take advantage of to reduce your rate. 
• Convertibility. If you’re leaning toward a variable-rate HELOC, consider whether you might have the option to switch to a fixed rate later. Not all HELOC lenders offer this benefit, but it can be appealing if variable rates lose their luster after closing. 

Aside from HELOC rates, it’s also important to consider other factors, including:

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

Digging into these details can take time, but it’s worth it to feel confident you’ve found the right HELOC for your needs. 

Does your state affect HELOC rates? Check out our resources to see the best lenders in your state:

• Arizona
• California
• Colorado
• Florida
• Massachusetts
• New Jersey
• New York
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia
• Washington

How to qualify for a HELOC

HELOC lenders can consider various factors when deciding whether to approve you. The critical considerations for HELOC approval often revolve around the following:

• Credit scores
• Income
• Debt-to-income ratio

Higher credit scores can make it easier to get approved for a HELOC and qualify for the lowest rates. Our research found minimum credit score requirements in the 620 to 640 range, but a “good” credit score is 670 to 739. You’ll need a score of 800 or better to have exceptional credit. 

Lenders consider the type of home you own. This is important because your home secures the HELOC. Income and debt-to-income ratio—your monthly debt payments divided by your pretax monthly income—also matter because they tell a lender how much money you can dedicate to repaying a home equity line of credit. 

The equity you have in your home also matters. It’s typical for lenders to cap the maximum LTV for a home equity loan at 80% or 85%. 

However, as you can see from our roundup of the best HELOC lenders, the maximum LTV can be higher or lower than that range. You can use a home equity calculator to estimate how much you might be able to borrow. From there, the next step is getting rate quotes and reviewing approval requirements with individual lenders. 

Read More

Best all-in-one HELOCs

Is a HELOC my best option?

A HELOC could be the best option for borrowing against home equity when you don’t know how much cash you might need. You could use a HELOC to pay for a one-time expense or ongoing costs. 

Here are scenarios where a HELOC might be a good option for funding expenses. 

When you need cash for…	You could use a HELOC to…
College	Pay for tuition, fees, room and board or off-campus housing, books, a new laptop, and other expenses.
Home improvements or repairs	Purchase supplies, pay contractors’ fees, and get necessary inspections or permits.
Healthcare	Make copayments or coinsurance payments, meet deductibles, purchase prescriptions, or pay medical bills insurance doesn’t cover.
A wedding	Pay deposits, rent furniture or equipment, pay the photographer, buy wedding clothes or rings, purchase decorations and favors, buy invitations, and even fund the honeymoon.
Emergencies	Cover emergency veterinary bills, pay for major car repairs, fix damage to your home that insurance doesn’t cover, or fund day-to-day living expenses if you’re unable to work because of an illness or injury.

Read More

HELOCs for landscaping projects

Is there anything you shouldn’t use a HELOC for?

We advise against using a HELOC for costs that aren’t necessities (such as a vacation) because you risk losing your home if you can’t repay it. We also don’t recommend using borrowed money to invest if you’re not comfortable accepting the risk that goes along with it. 

You may also weigh the pros and cons of using your home equity to fund a new business. If the business fails, you’ll still have to pay back what you borrowed or risk the lender foreclosing on your house. 

Alternatives to a HELOC

A HELOC is one option for getting cash, but it may not suit everyone. Some properties, such as co-ops, may not allow HELOCs. Business owners may want to consider commercial equity lines of credit. While shopping for the best home equity line of credit, you might also consider other ways to borrow.

HELOC alternatives include:

• Home equity loans
• Personal loans
• Credit cards

Home equity loans allow you to tap into your equity by borrowing a lump sum. Compared to a HELOC, home equity loans may have longer repayment periods. Fixed rates are more common with home equity loans, which means the rate and monthly payment will remain the same for the life of the loan. 

Personal loans might be preferable to home equity loans or HELOCs if you’d prefer not to use your home as collateral. If you fail to repay a HELOC or home equity loan, you risk losing your home to foreclosure. Many personal loans are unsecured, eliminating that risk. 

Credit cards are another option for borrowing if you don’t need cash. For example, you might use a credit card to purchase supplies for home renovations or cover an emergency expense. Watch out for the APR because credit card interest rates can be much higher than HELOC rates. 

How to apply for a HELOC

Applying for a HELOC is similar to applying for other loans, but it’s wise to know what to expect. Before you hit “submit” on a loan application, it’s helpful to do the following:

• Estimate how much you’ll need to borrow
• Calculate your home equity
• Check your credit score
• Review your income and debt

Once you have numbers, you can shop for the best home equity line of credit. This is where it pays to compare rates, fees, and loan terms to find the right option. 

Every lender has unique guidelines for submitting a HELOC application. You may be able to check your rates first before completing the entire application. Lenders who offer this often allow you to prequalify through a short online questionnaire that doesn’t affect your credit. It’s an opportunity to see how much you might pay to borrow before completing a full application and having a hard credit inquiry added to your credit report. 

You’ll likely need several documents to apply for a HELOC, and organizing them beforehand is wise. For example, a lender may ask to see the following:

• Recent pay stubs
• Tax forms for the previous year or two years
• Bank statements
• Copies of your homeowners insurance policy and flood declarations
• Current year property tax bill
• Recent mortgage statements

If you’re applying for a HELOC online, your lender should tell you how to upload those documents. Whether you need an appraisal can depend on the lender. Some lenders allow automatic appraisals online, while others require an in-person evaluation of your home. 

Find out more about how to apply for a HELOC.

FAQ

How does a HELOC work?

A HELOC is a line of credit that allows you to borrow against your home equity. HELOCs have a draw period, during which you can use your credit line, followed by a repayment period. 

Draw periods can last five to 10 years, while repayment periods can last up to 20 years. You may be required or given the option to make interest-only payments during the draw period. You only pay interest on the amount of your credit line you use.

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Tip

Some lenders offer HELOCs with no prepayment penalties, offering more control over the repayment process.

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What’s the average HELOC rate today?

We couldn’t find any government agencies providing this information, so we reviewed the rate ranges of 10 HELOC lenders disclosing their marketed rates to calculate the average rate range of 7.80% to 15.56% APR. We calculated this on March 27, 2023. 

Note: This is the average lowest and highest rate from the lenders, not the average borrowers received.

The average HELOC rate is not fixed and can fluctuate by day or week. The average for fixed-rate HELOCs, which are often attractive to retirees, may differ from variable-rate HELOCs.

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.

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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. 

Are there limitations to how I use a HELOC?

You can use a HELOC to meet various financial needs, including home renovations or repairs, debt consolidation, major purchases, or emergency expenses. If there are any limitations on what you can use a HELOC for, your lender should disclose those upfront. 

Read More

HELOCs for new construction and HELOCs for ADUs

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. Hitch, for example, can provide funding within a few days, while other lenders may require you to wait two to six weeks to access funds. 

Generally, funding may be faster with online HELOC lenders versus traditional banks or credit unions. 

How we chose the best HELOC 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 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 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.

Recap of the best HELOCs