Best HELOC Lenders of 2023
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.
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.
Best HELOC Lenders
Lender | NerdWallet rating | National / regional | Max LTV | Min. credit score | Learn more |
---|---|---|---|---|---|
![]() Bethpage Federal Credit Union: NMLS#449104 Learn more at Bethpage Federal Credit Union | Best for large withdrawals | National | 85% | 670 | Learn more at Bethpage Federal Credit Union |
![]() PNC: NMLS#446303 Learn more at PNC | Best for existing customers | National | 85% | 680 | Learn more at PNC |
![]() Guaranteed Rate: NMLS#2611 | Best for large withdrawals | National | 90% | 640 | Read review |
![]() State Employees' Credit Union: NMLS#430055 | Best for long draw period | Regional | 90% | 640 | Read review |
![]() PenFed: NMLS#401822 | Best for fixed-rate option | National | 80% | N/A | Read review |
![]() Alliant: NMLS#197185 | Best for large withdrawals | National | 90% | N/A | Read review |
![]() Golden 1 Credit Union: NMLS#669333 | Best for no annual fees | Regional | N/A | N/A | Read review |
![]() Bank of America: NMLS#399802 | Best for fixed-rate option | National | 85% | 660 | Read review |
![]() Truist: NMLS#399803 | Best for fixed-rate option | National | 80% | N/A | Read review |
![]() Homebridge: NMLS#6521 | Best for no annual fees | National | N/A | N/A | Read review |

at Bethpage Federal Credit Union
Bethpage Federal Credit Union: NMLS#449104

National / regional
NationalMax LTV
85%Min. credit score
670at Bethpage Federal Credit Union

at PNC
PNC: NMLS#446303

National / regional
NationalMax LTV
85%Min. credit score
680at PNC
Guaranteed Rate: NMLS#2611

National / regional
NationalMin. credit score
640Max LTV
90%State Employees' Credit Union: NMLS#430055

National / regional
RegionalMax LTV
90%Min. credit score
640PenFed: NMLS#401822

National / regional
NationalMax LTV
80%Min. credit score
N/AAlliant: NMLS#197185

National / regional
NationalMax LTV
90%Min. credit score
N/AGolden 1 Credit Union: NMLS#669333

National / regional
RegionalMax LTV
N/AMin. credit score
N/ABank of America: NMLS#399802

National / regional
NationalMax LTV
85%Min. credit score
660Truist: NMLS#399803

National / regional
NationalMin. credit score
N/AMax LTV
80%Homebridge: NMLS#6521

Min. credit score
N/AMax LTV
N/ANational / regional
NationalHow 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 January 3, 2023
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.
To recap our selections...
NerdWallet's Best HELOC Lenders of 2023
- Bethpage Federal Credit Union: Best for large withdrawals
- PNC: Best for existing customers
- Guaranteed Rate: Best for large withdrawals
- State Employees' Credit Union: Best for long draw period
- PenFed: Best for fixed-rate option
- Alliant: Best for large withdrawals
- Golden 1 Credit Union: Best for no annual fees
- Bank of America: Best for fixed-rate option
- Truist: Best for fixed-rate option
- Homebridge: Best for no annual fees
Frequently asked questions
Yes, banks are still offering HELOCs. At the beginning of the COVID-19 pandemic, some lenders suspended underwriting new HELOCs. Now, some have resumed HELOC lending and some haven't.
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.