Best HELOC Lenders of 2024

Best HELOC Lenders of 2024

Best for No Fees

Bank of America

See Offers

Vault Verified

Loan Amount

$25,000 up to the available equity in your home

Minimum credit score

Not disclosed

Funding speed

Not disclosed

Why We Chose It

Bank of America doesn’t charge some of the common fees that you might find with other HELOC lenders. You’ll also have the option to convert some or all of your balance to a fixed-rate loan with no additional fee. Finally, the lender offers a few opportunities to earn a discount on your interest rate.

Pros

• Offers three interest rate discounts
• No maximum loan amount
• Fixed-rate loan option

Cons

• Doesn’t disclose maximum APRs
• Early termination fee if you close the HELOC within three years
• Must close in person

Additional Information

Fees:

• No closing costs on lines of up to $1 million; no application fee and no annual fee

Repayment Schedule:

• 10-year draw period; 20-year repayment period

APR:

• Introductory APR as low as 7.49% variable for six months, then as low as 9.9% variable after that

Loan Availability:

• Nationwide

Best for Fast Funding

Figure

See Offers

Vault Verified

Loan Amount

$15,000 – $400,000

Minimum credit score

640 (680 for investment properties)

Funding speed

As soon as five days

Why We Chose It

Figure offers a completely online application and funding process, allowing you to receive funding in as little as five days. Figure is also one of the best HELOC lenders for investment properties—an option many lenders don’t offer.

Pros

• Available on investment properties
• Quick funding
• Flexible repayment terms

Cons

• Not available nationwide
• Charges an upfront origination fee
• Relatively low loan limit

Additional Information

Fees:

• Origination fee of up to 4.99% of your initial draw

Repayment Schedule:

• 5 – 30 years

APR:

• 7.85% – 17.20% variable

Loan Availability:

• 45 states and the District of Columbia

Best for Flexible Loan Amounts

Flagstar Bank

See Offers

Vault Verified

Loan Amount

$10,000 – $1 million

Minimum credit score

680

Funding speed

Not disclosed

Why We Chose It

Flagstar Bank offers flexible HELOC amounts, going lower than many other HELOC lenders. There are also no bank closing costs as long as you keep the account open for at least three years. If you set up automatic payments, you’ll get a 0.25% discount on your interest rate.

Pros

• Flexible loan amounts
• Interest rate discount with automatic payments
• No closing costs if you avoid an early closure

Cons

• Charges an annual fee
• Not available in Texas
• No fixed-rate option

Additional Information

Fees:

• No closing fees if HELOC remains open for 36 months; $75 annual fee after the first year

Repayment Schedule:

• 10-year draw period, 20-year repayment period

APR:

• 9.49% – 21% variable

Loan Availability:

• 49 states and the District of Columbia

Best for Discounted Closing Costs

PenFed Credit Union

See Offers

Vault Verified

Loan Amount

$25,000 – $500,000

Minimum credit score

680

Funding speed

As little as 15 days

Why We Chose It

PenFed Credit Union offers relatively quick funding compared to other lenders, and the credit union will pay most of your closing costs. While you need to become a member of the credit union to get approved, the requirements are easy to meet.

Pros

• Fast closing
• Offers a fixed-rate option
• Available nationwide

Cons

• Charges an annual fee
• Relatively high loan minimum
• Must become a PenFed member

Additional Information

Fees:

• $99 annual fee

Repayment Schedule:

• 10-year draw period, 20-year repayment period

APR:

• 8.625% – 18% variable

Loan Availability:

• Nationwide

Best for Members of the Military Community

Navy Federal Credit Union

See Offers

Vault Verified

Loan Amount

$10,000 – $500,000

Minimum credit score

Not disclosed

Funding speed

45 – 55 days

Why We Chose It

Navy Federal Credit Union allows you to borrow up to 95% of your home’s equity, with flexible loan amounts and a longer draw period than most other options. But you must be an eligible member of the military community to become a Navy Federal member and qualify for its HELOC.

Pros

• Pays all closing costs
• Low loan minimum
• High borrowing limit based on equity

Cons

• Stringent membership requirements
• No fixed-rate option
• Not available in Texas

Additional Information

Fees:

• No application, origination, annual or inactivity fee

Repayment Schedule:

• 20-year draw period, 20-year repayment period

APR:

• 8.75% – 18% variable

Loan Availability:

• 49 states and the District of Columbia

Best for a Long Introductory APR

Connexus Credit Union

See Offers

Vault Verified

Loan Amount

$5,000 and up

Minimum credit score

Not disclosed

Funding speed

Not disclosed

Why We Chose It

Connexus Credit Union offers a low introductory APR for more than a year, helping you maximize your savings in a high interest rate environment. The lender also offers the lowest minimum loan amount of any of our top choices. At the same time, you can borrow up to 90% of your home’s value, a higher limit than what most HELOC lenders offer.

Pros

• Long introductory APR period
• Low loan minimum
• High loan-to-value ratio limit

Cons

• Charges closing costs
• Must become a Connexus member
• Not available nationwide

Additional Information

Fees:

• Closing costs ranging from $175 to $2,000

Repayment Schedule:

• 15-year draw period, 15-year repayment period

APR:

• As low as 5.99% variable until 4/1/25, as low as 6.49% variable until 10/1/25, then 8.74% – 15.9% variable after that

Loan Availability:

• 46 states and the District of Columbia

Best for Rewards

Fifth Third Bank

See Offers

Vault Verified

Loan Amount

$10,000 – $500,000

Minimum credit score

Not disclosed

Funding speed

Not disclosed

Why We Chose It

Many HELOCs come with a linked credit card for convenient spending. But Fifth Third Bank also offers rewards on your credit card purchases to the tune of 1 point for every $3 spent. You’ll also get a 5,300 bonus on your first qualifying purchase. The lender also charges no closing costs. You can convert your balance to a fixed-rate loan, but there’s a $95 fee to do it.

Pros

• Offers rewards on credit card purchases
• No closing costs
• Available on investment properties

Cons

• Only available in a handful of states
• Charges an annual fee
• No transparency about credit requirements or funding time

Additional Information

Fees:

• No closing costs; $65 annual fee after the first year

Repayment Schedule:

• 10-year draw period, 20-year repayment period

APR:

• 8.50% – 16.40% variable

Loan Availability:

• 11 states

Best for a Fixed Interest Rate

Guaranteed Rate

See Offers

Vault Verified

Loan Amount

$25,000 – $400,000

Minimum credit score

640

Funding speed

5 – 10 days

Why We Chose It

Unlike most HELOC lenders, Guaranteed Rate charges a fixed interest rate from the start. You’ll also get some flexibility with your terms, with options ranging from five to 30 years. Upon approval, the full credit limit will be disbursed, but you’ll have the option to make further draws as you pay down the balance.

Pros

• Fixed interest rates
• Fully online process
• Flexible terms

Cons

• Charges an origination fee
• Not available nationwide
• Limited flexibility with draws

Additional Information

Fees:

• Origination fee of 1.99%

Repayment Schedule:

• 5 – 30 years, including a draw period of 2 – 5 years

APR:

• 8.35% – 16.70% fixede

Loan Availability:

• 41 states and the District of Columbia

What Is a HELOC Lender?

A HELOC lender may be a bank, credit union or online financial institution that offers home equity lines of credit to existing homeowners. Depending on the lender, it may also offer other home financing options, such as mortgage loans, refinance loans and home equity loans.

Some HELOC lenders work with borrowers nationwide, while others may limit their offerings to homeowners in select states only.

How Do HELOC Lenders Work?

HELOC lenders offer lines of credit that work differently from a traditional installment loan. Instead of a lump-sum disbursement upon approval, you’ll get a credit limit.

During the draw period, you can borrow up to the credit limit and either make interest-only payments or pay back some of the principal, allowing you to re-borrow those funds. Then during the repayment period, you’ll make regular monthly payments on your remaining balance.

HELOC lenders typically require a credit score of 620 or higher. While loan amounts can vary by lender, you can generally only borrow up to 80% or 85% of your home’s value (including your mortgage loan).

Why Would You Need a HELOC Lender?

Once you’re approved for a HELOC, you can use the funds for just about anything you want. In general, though, here are some common reasons to consider applying for one:

• Debt consolidation. HELOCs often offer lower interest rates than credit cards and some other forms of consumer debt, allowing you to save money as you improve your financial situation.
• Home improvements. If you have some renovations you’d like to make, a HELOC may offer lower rates and more flexible repayment terms compared to a credit card or a personal loan. You may even be able to deduct the interest you pay on your HELOC if you use the funds to buy, build or substantially improve the home used as collateral for the debt.
• Home repairs. Even if you have no home renovations in mind, a HELOC can be a great way to cover important home maintenance and repairs, so you don’t need to deplete your emergency fund every time something comes up.
• Emergency expenses. Having an open HELOC gives you the flexibility to cover emergency expenses when you don’t have sufficient savings to meet your financial needs. What’s more, the interest-only payment option during the draw period can put less of a strain on your budget compared to other financing options.
• Business expenses. If you’re looking to start a business, it can be difficult to get approved for funding until you have a decent track record of strong revenues. During those early stages, a HELOC can be more affordable than business credit cards and short-term business financing options.

How to Choose the Best HELOC Lender for You

With so many different options available, it’s important for you to shop around and compare several lenders to ensure you get the right financing option for you. As you review the following factors to consider, evaluate your current situation, as well as your financial needs and objectives, to get an idea of which factors are most important to you.

Costs

Get prequalified or preapproved with multiple lenders, so you can compare interest rates based on your creditworthiness. If a lender offers an introductory APR, make sure you compare the ongoing APR.

You’ll also want to consider other costs you may be subject to, including origination fees, other lender closing costs, annual fees and early termination fees. If a lender offers to cover your closing costs, check to see if there are strings attached, such as keeping your account open for a minimum amount of time.

Loan Amounts

Think about your financial needs and goals to determine how big of a credit limit you want. Then compare the loan amounts that each lender offers, along with loan-to-value ratio (LTV) limits, to determine whether you can get what you need.

Repayment Options

The standard term for a HELOC is 30 years, broken up into a 10-year draw period and a 20-year repayment period. But some lenders may offer more flexibility based on your needs.

Also, if you like the idea of converting your loan balance to a fixed interest rate to protect yourself from a potential increase in your variable rate, look for lenders that offer that choice.

Eligibility Requirements

You’ll typically need a credit score of 620 or higher to get approved for a HELOC, but some lenders require a higher score than that. Check your credit score to get an idea of where you stand, then focus your research on lenders that offer a good chance of approval.

Other Features

Depending on your situation, needs and goals, you may want to consider other features HELOC lenders may offer. For example, your options may be limited if you’re thinking about getting a HELOC on an investment property. You may also consider lenders that offer interest rate discounts, fast funding or other features that are a priority for you.

Best HELOC Lenders vs. Other Loan Options

Depending on your situation, a HELOC may or may not offer what you need to accomplish your goals. Before you apply for a HELOC, it’s important to research all of your options to make sure you get what you need. Here are some alternatives you can compare.

Best HELOC Lenders vs. Home Equity Loan Lenders

Like a HELOC, a home equity loan allows you to tap your property’s equity. Home equity loans offer a fixed interest rate instead of a variable one, and you’ll get a lump-sum disbursement, which you’ll repay over five to 30 years. A home equity loan could be worth considering if you need financing for a single situation and don’t plan on needing ongoing access to credit.

Best HELOC Lenders vs. Cash-Out Refinance Lenders

With a cash-out refinance loan, you’ll refinance your existing mortgage loan instead of taking out a second mortgage. But you can use this loan to access some of your home’s equity. A cash-out refinance could be worth considering if you can qualify for better terms than what you’re paying on your current mortgage, but the option can come with hefty closing costs.

Best HELOC Lenders vs. Personal Lenders

Personal loans offer a lump-sum disbursement, which you’ll repay over one to seven years, depending on the lender. Unlike HELOCs, personal loans typically don’t require collateral, so there’s no risk of losing your home if you default. But they typically charge higher interest rates and have shorter repayment terms, giving you less financial flexibility.

Best HELOC Lenders vs. Credit Cards

If you want something for everyday spending, a credit card may be a better choice than a HELOC. Credit cards often offer rewards on every purchase you make, and you can typically avoid interest charges if you pay your bill in full every month. But high interest rates make credit cards less attractive for large purchases, home renovations or debt consolidation.