Best HELOC Lenders of 2024
A HELOC lets you tap your home's equity. Compare our selections for best HELOC lenders.
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A home equity line of credit, or HELOC, is a second mortgage that lets you borrow against the value of your home. You tap some of your equity as needed and pay back only what you borrow. Borrowers often use HELOCs to finance home improvement projects, educational expenses or debt consolidation.
The interest rate on a HELOC tends to be lower than rates on credit cards and personal loans. Lenders use your loan-to-value ratio, or LTV, to decide if you have enough equity for a HELOC.
NerdWallet has chosen some of the best HELOC lenders to help you find the one that's right for you.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best HELOC Lenders of 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Max LTV ▾ ▾ | Min. credit score ▾ ▾ | National / regional ▾ ▾ | Learn more |
|---|---|---|---|---|---|
85% | 640 | National | |||
 FourLeaf Federal Credit Union: NMLS#449104 Top 3 most visited 🏆 See Offers at FourLeaf Federal Credit Union | 85% | 670 | National | Top 3 most visited 🏆 See Offers at FourLeaf Federal Credit Union | |
 PNC Bank: NMLS#446303 LEARN MORE on NerdWallet | 89.90% | 600 | National | LEARN MORE on NerdWallet | |
 Bank of America: NMLS#399802 LEARN MORE on NerdWallet | 85% | 660 | National | LEARN MORE on NerdWallet | |
 TD Bank: NMLS#399800 LEARN MORE on NerdWallet | 89.90 | 620 | Regional | LEARN MORE on NerdWallet | |
 Golden 1 Credit Union: NMLS#669333 LEARN MORE on NerdWallet | 80% | N/A | Regional | LEARN MORE on NerdWallet | |
 State Employees' Credit Union: NMLS#430055 LEARN MORE on NerdWallet | 90% | 600 | Regional | LEARN MORE on NerdWallet |
Explore all of our lender picks by category
- Why we like itFigure is a large HELOC lender and stands out for offering funding in as fast as five days. However, borrowers have to draw their full line amount at closing, and will pay an origination fee.Pros
- Specializes in HELOCs.
- The initial balance and any additional draws have a fixed interest rate.
- Closing may be available in just five days.
- HELOCs are available for second homes.
ConsRead full review- Short draw period of two to five years.
- Requires a $15,000 minimum initial draw.
- Lender charges origination fees up to 4.99%.
- Why we like itFourLeaf HELOC borrowers don’t pay closing costs (as long as the line is open for more than three years) and can get an introductory rate below the prime rate.Pros
- No closing costs
- Easy-to-join credit union.
- Fixed introductory rate is below the prime rate.
ConsRead full review- Must pay back closing costs if the line is open for three years or less.
- Why we like itPNC Bank is a large HELOC lender with a higher-than-average borrowing limit, a wide range of repayment terms and no initial draw requirements.Pros
- Max borrowing limit is higher than average.
- Minimum credit score requirement is lower than most competitors.
- Repayment period up to 30 years.
- Among the largest HELOC lenders by origination volume.
ConsRead full review- Annual fee of $50.
- Borrowers in California, North Carolina and New York will pay an origination fee.
- Why we like itBank of America’s HELOC stands out for offering multiple types of rate discounts, especially for current Bank of America customers, and a fixed-rate option that can help keep payments predictable.Pros
- Charges no annual fee, application fee or closing costs.
- Publishes sample HELOC rates online.
- Offers multiple discounts, including autopay discount when using a Bank of America account.
ConsRead full review- Maximum CLTV is 85%, which is on the low side for HELOC lenders reviewed by NerdWallet.
- Charges an early account closure fee under some circumstances.
- Why we like itTD Bank stands out for being one of the largest HELOC lenders in the country by origination volume. Borrowers have the option to lock their interest rate on a balance, and rate quotes are customizable online.Pros
- Maximum borrowing limit is 89.99%, higher than the industry standard of 80%.
- Rate discount for borrowers with a TD Bank checking account.
- No minimum draw requirement.
ConsRead full review- Borrowers pay a $99 origination fee and a $50 annual fee.
- Borrowers can apply online but must close in person.
- Best rates are reserved for lines of credit starting at $200,000.
- Why we like itGolden 1 Credit Union can be a good choice for borrowers in California seeking a line of credit with no annual fees.Pros
- Offers a fixed-rate option.
- No closing costs or annual fees.
ConsRead full review- Credit union membership is limited to California borrowers.
- Why we like itState Employees' Credit Union may be a strong match for qualified North Carolina borrowers who want a long window to access their equity.Pros
- Long draw period of 15 years.
- Introductory rate is below the prime rate.
- Second homes are eligible for HELOCs.
ConsRead full review- Credit union membership is limited by restrictive requirements.
- Why we like itPenFed Credit Union stands out for having a low introductory rate and a fast closing, but borrowers will have to pay a $99 annual fee.Pros
- Some borrowers may be able to close in as little as 15 days.
- Advertised introductory rate is below the current prime rate.
- Application is available online and via mobile app.
- No origination or transaction fees.
ConsRead full review- Annual fee of $99.
- Credit score requirements are on the higher side among lenders we review.
- Credit union membership is required to finish the application.
- Why we like itTruist is a large HELOC lender, with a generous borrowing limit, the option to fix the rate on all or part of the loan balance, and no origination fees.Pros
- Choice of 5, 10, 15, 20 or 30-year repayment terms for borrowers with fixed rates.
- No initial draw required.
- No origination fees or prepayment penalties.
ConsRead full review- $50 annual fee.
- Rates are not posted online.
- Fixed-rate draws must be at least $5,000.
- Why we like itRate’s HELOC is unique for having a fixed (rather than variable) interest rate and a short draw period. Additionally, the full loan amount (minus the origination fee) must be drawn at closing.Pros
- Closing may be available within five to 10 days of applying.
- The initial balance and any additional draws have a fixed interest rate.
- Offers paths for rate discounts.
ConsRead full review- No information about annual fees.
- Full amount (minus origination fee) must be drawn at closing.
- Short draw period of 2-5 years, compared with industry standard of 10 years.
- Why we like itVariety of property typesPros
- Offers fixed-rate and adjustable repayment options.
- Available for second homes and investment properties, too.
- No annual fee.
- Sample rates based on location are published online.
ConsRead full review- Initial draw is required.
- Maximum draw period of 5 years is shorter than most HELOCs.
- Borrowing limit of $500,000 is lower than other lenders’.
- Why we like itHomebridge may appeal to borrowers who want a line of credit without annual fees.Pros
- Offers a fixed-rate option.
- No annual fees.
- Offers paths for rate discounts.
ConsRead full review- Limited transparency around maximum CLTV and APR.
How a HELOC works
A HELOC works similarly to a credit card: You’re able to borrow up to a certain limit as needed, rather than taking out a lump sum all at once. The lender uses your home’s value to set the HELOC limit, and they’ll let you borrow a percentage of what you own. You may borrow during a draw period that lasts for several years and pay interest only on the balance. After the draw period ends, you may no longer take money out, and you pay the principal plus interest.
To obtain the best HELOC rates, make sure you comparison shop, preferably among at least three lenders. By shopping around, you're likely to find the combination of features and interest rate that make the best home equity line of credit for your needs.
Pros and cons of HELOCs
A HELOC's main advantage is that it offers flexibility. During the draw period, the minimum monthly payment covers just the interest on the balance, so you don't have to pay principal if you don't want to.
A HELOC can have a variable interest rate, which means it can go up or down over time. When the interest rate rises, the minimum monthly payment may increase, too. Less commonly, some lenders offer a fixed-rate HELOC option, meaning that you can lock in some or all of the loan balance at a specific APR.
There are two major disadvantages to a HELOC: The interest rate can rise, and you can get in over your head if you're not careful. You may end up borrowing so much that you can't comfortably afford the principal and interest during the repayment period.
HELOCs typically have lower interest rates than credit cards. But defaulting on a HELOC could put your home at risk of foreclosure.
Alternatives to HELOCs
A HELOC is not your only option for tapping your home's equity. If you know exactly how much you need to borrow, you may consider a home equity loan, which you receive as a lump sum and pay back at a fixed rate.
» MORE: Best home equity loan lenders
If you need to borrow more money than you'd qualify for with a HELOC or home equity loan, a cash-out refinance may be the right choice for you. This replaces your original mortgage with a larger one, and you receive the difference between the value of the loan and the amount you currently owe in cash.
Finally, if you cannot qualify for a HELOC, a shared appreciation agreement may be worth exploring. This transaction allows you to sell off a stake in your future equity earnings to a company in exchange for an advance on some of your current equity. This type of agreement is typically for homeowners with a lot of equity but little cash reserves, and most consumers are better served by a HELOC if they can get one. You risk losing out on equity profits by mortgaging the future value of your home, so think carefully before choosing this option.
More from NerdWallet
Last updated on August 1, 2023
Frequently asked questions
Lender requirements vary, but typically you'll need a credit score of 620 or higher. Taking out a HELOC will probably reduce your credit score temporarily when it appears on your credit report.
The interest you pay each year on a HELOC is tax-deductible up to a limit as long as the borrowed money is used to buy, build or substantially improve your home, according to the IRS.
Methodology
The star ratings on this page reflect each lender's home equity line of credit star rating. HELOC star ratings are awarded based on the following evaluated factors for reviewed mortgage lenders that offer HELOCs: whether a fixed-rate option is available, CLTV borrowing limits, annual fees and transparency on key factors.
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must score a 4 or above according to our HELOC methodology.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best HELOC Lenders of 2024
- Figure: Best for fast closing
- FourLeaf Federal Credit Union: Best for large withdrawals
- PNC Bank: Best for existing customers
- Bank of America: Best for fixed-rate option
- TD Bank: Best for East Coast borrowers
- Golden 1 Credit Union: Best for no annual fees
- State Employees' Credit Union: Best for long draw period
- PenFed: Best for fixed-rate option
- Truist: Best for fixed-rate option
- Rate: Best for large withdrawals
- Better: Best for variety of product types
- Homebridge: Best for no annual fees
