Best HELOC Lenders of 2025
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A home equity line of credit, or HELOC, is a second mortgage that lets you convert some of the equity in your home back into debt in exchange for cash. Your equity is the value of your home, minus any remaining mortgage balances.
The interest rate on a HELOC tends to be lower than rates on credit cards and personal loans. Lenders use your combined-loan-to-value ratio, or CLTV, to decide if you have enough equity for a HELOC. NerdWallet has chosen some of the best HELOC lenders to help you shop for the one that's right for you.
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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 2025
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Lender | NerdWallet Rating | National / regional | Max LTV | Min. credit score | Learn more |
|---|---|---|---|---|---|
 FourLeaf Federal Credit Union: NMLS#449104 | National | 85% | 670 | ||
 Figure: NMLS#1717824 | National | 85% | 640 | ||
 Rate: NMLS#2611 | National | 85% | 640 | ||
 State Employees' Credit Union: NMLS#430055 | Regional | 90% | 600 | ||
 U.S. Bank: NMLS#402761 | National | 80% | 660 | ||
 Navy Federal: NMLS#399807 | National | 95% | N/A | ||
 TD Bank: NMLS#399800 | Regional | 89.90 | 620 | ||
 PenFed: NMLS#401822 | National | 85% | 680 | ||
 Truist: NMLS#399803 | National | 89% | 660 | ||
 PNC Bank: NMLS#446303 | National | 89.90% | 600 | ||
 Bank of America: NMLS#399802 | National | 85% | 660 | ||
 Golden 1 Credit Union: NMLS#669333 | Regional | 80% | N/A | ||
 Citizens Bank: NMLS#433960 | National | 80% | N/A |
Explore all of our lender picks by category
- 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 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 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 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 itU.S. Bank’s HELOC offers a rate discount and an option to convert to a fixed rate. It has a generous maximum draw, but the lender charges an annual fee and early repayment penalty.Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
- High maximum loan amount compared with other lenders.
ConsRead full review- Charges a fee for early repayment.
- Annual fee of $75.
- Why we like itNavy Federal’s HELOC stands out for its long draw period of 20 years and lack of fees, but qualifications to join the credit union are narrow.Pros
- Unusually long draw period of 20 years.
- Borrowing limit of up to 95% CLTV is among the highest of lenders we review.
- No application, origination, or annual fees.
ConsRead full review- Potential borrowers must qualify for credit union membership.
- Only one repayment term option, which is 20 years.
- 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 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 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 17 states and Washington, D.C. 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 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 itCitizens Bank is one of the largest HELOC lenders in the nation by volume, and offers a specialized HELOC product for borrowers who make less than the median income in their area.Pros
- Among the top HELOC lenders in the country by volume.
- Full application is available online.
- Closing may be available within seven days.
ConsRead full review- No fixed-rate option.
- Annual fee of $50 after the first year.
- Repayment period is 15 years, when 20 is standard.
How a home equity line of credit works
A HELOC allows you to borrow as needed, up to a certain credit limit based on your home’s value (minus any existing mortgages). Most HELOCs have variable interest rates, which rise and fall with the market.
As you pay down the HELOC balance, you’re able to continue borrowing more. This flexibility can be convenient if you’re financing a series of expenses.
HELOCs have two phases:
🏧 Draw period. The timeframe when you can borrow from the HELOC usually lasts 10 years. During this phase, you typically only have to pay interest on the amount you’ve borrowed.
💸 Repayment period. After the draw period ends, you can’t borrow any more and you begin paying the principal and interest. You’ll usually have up to 20 years to pay off the remaining balance.
Requirements for a HELOC loan
In order to qualify for a HELOC, you’ll need to meet lenders’ minimum requirements. These can vary across lenders, but following the below guidelines will help you qualify with the widest range of lenders.
🏠 Enough home equity. Most lenders will allow you to borrow up to 80%-85% of the value of your home, minus any other mortgage debt.
💳 A solid credit score. Most lenders will want to see a score of at least 620, and some have higher minimums.
⚖️ Minimal debt. Lenders will look at the percentage of your income that goes towards monthly debt obligations (called your debt-to-income ratio, or DTI). A DTI of 43% or less will help you qualify with the most lenders.
MORE NERDY PERSPECTIVE 🤓
 | What is a HELOC for? I had a neighbor who used a HELOC to buy a Harley. That was a mistake, for two reasons. First, a Ducati would have been way cooler. Second, it's not advisable to spend your home equity on things that lose value (like motorcycles) or for experiences like vacations. (He lost the house and bike in the Great Recession.) Instead, use a HELOC to invest in home improvements or tuition — things that improve the financial standing of you or your family. - Holden Lewis, Senior Writer/Spokesperson, Mortgages |
Getting the best HELOC rate
Following these guidelines will help you get the best HELOC rates.
🛒 Shop around with at least three lenders. This will help you find the combination of features and interest rates that make the best HELOC for your needs.
💪 Build your credit score. The best rates are typically reserved for borrowers with scores of 740 and higher. One way to quickly bump your score is to request free copies of your credit report and report any errors. These could be artificially lowering your score.
💲Pay down debts, but don’t close cards. While a DTI of 43% is the maximum to qualify for a HELOC with many lenders, a ratio of 36% or less will help you get the best rate offers.
Pros and cons of HELOCs
Pros
- Flexibility. You can borrow what you need as you need it, up to your credit limit.
- Low initial payments. During the draw period, the minimum monthly payment usually covers just the interest on the balance, and you aren’t required to pay the principal.
Cons
- Payments can be unpredictable. Most HELOCs have a variable interest rate. When the interest rate rises, the minimum monthly payment will increase, too.
- Risk of foreclosure. If you can’t keep up with your monthly payments, you could lose your home.
Alternatives to a HELOC
A HELOC is not your only option for tapping your home's equity.
Product | How it works | Who it's for | Best lenders |
|---|---|---|---|
You open a line of credit backed by a percentage of your home equity. You’ll usually pay it back at a variable rate. | Borrowers who want flexibility to draw from their home equity as they need it. | See NerdWallet’s list above | |
You borrow a percentage of your home equity as a lump sum loan and pay it back at a fixed rate. | Borrowers who know how much they need to borrow, and would benefit from taking it out all at once. Home equity loans can also make sense for borrowers who prefer predictable payments. | ||
You replace your current mortgage with a new, larger loan, with a new interest rate and repayment terms. You pocket the difference between your new mortgage and the original loan. | Borrowers who want to refinance their current mortgage and take cash out. Cash-out refinances also make sense for borrowers who prefer to manage one loan. | ||
You sell off a stake in your future equity earnings in exchange for an advance on some of your current equity. Most consumers are better served by a HELOC if they qualify. | Borrowers who cannot qualify for a HELOC but need cash flow. Shared appreciation agreements are typically for homeowners with a lot of equity but not enough savings. | N/A |
More from NerdWallet
Last updated on July 1, 2025
Frequently asked questions
Lender requirements for a HELOC vary, but typically you'll need a credit score of 620 or higher. As with other hard credit inquiries, 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. This requirement expires after the 2025 tax year.
Your HELOC payment will depend on several factors — mainly, your interest rate and repayment term.
For example, if you withdrew $50,000 from a HELOC at a variable interest rate of 9.13%, your minimum monthly payment would start at around $400 per month. This amount would change any time you get a new interest rate. It would also increase after the 10-year draw period ends and your monthly minimum payments begin to include the principal balance.
You have the best chances of getting approved for a HELOC if you have at least 20% equity in your home, a credit score that is at least in the mid-600s, and little debt. Use NerdWallet’s HELOC calculator to see how much you could be approved to borrow with a HELOC.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s HELOC category. For inclusion in this roundup, lenders must offer HELOCs and achieve a star rating of 4 or above in the HELOC rubric from NerdWallet. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 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.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) HELOC loan volume, (2) maximum CLTV, (3) whether they offer a fixed-rate option, (4) annual fees, (5) origination fees, (6) transaction fees, (7) initial draw requirements, (8) length of draw and repayment terms, (9) application availability online or via mobile app, (10) range of customer support options, (11) average closing time transparency, (12) interest rate transparency and (13) transparency regarding how to access funds. A recent regulatory action against a lender may affect its HELOC star rating. The highest scoring lenders appear on this page.
NerdWallet's Best HELOC Lenders of 2025
- FourLeaf Federal Credit Union: Best for no closing costs
- Figure: Best for fast closing
- Rate: Best for fixed-rate borrowers
- State Employees' Credit Union: Best for North Carolina borrowers
- U.S. Bank: Best for fixed-rate borrowers
- Navy Federal: Best for military members and their families
- TD Bank: Best for high borrowing limit
- PenFed: Best for fast closing
- Truist: Best for fixed-rate borrowers
- PNC Bank: Best for high borrowing limit
- Bank of America: Best for no closing costs
- Golden 1 Credit Union: Best for California borrowers
- Citizens Bank: Best for fast closing
