Best HELOC Lenders of 2024

Last updated on October 1, 2024
Written by 
Taylor Getler
Writer
Johanna Arnone
Edited by 
Johanna Arnone
Assigning Editor
Fact Checked
Taylor Getler
Written by 
Writer
Johanna Arnone
Edited by 
Johanna Arnone
Assigning Editor
Fact Checked

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners and here's how we make money.

  • 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.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Best HELOC Lenders of 2024

Have you or your spouse served in the military?

We’ve got more home loan options for you. Show me

Lender
NerdWallet Rating
National / regional
Max LTV
Min. credit score
Learn more
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

Top 3 most visited 🏆
Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
HELOCs
Best for fixed-rate option

National

85%

670

Figure

Figure: NMLS#1717824

4.0
/5
HELOCs
Best for fast closing

National

85%

640

Rate

Rate: NMLS#2611

Learn more
at Rate
at Rate
3.5
/5
HELOCs
Best for fixed-rate option

National

85%

640

Navy Federal

Navy Federal: NMLS#399807

LEARN MORE
on NerdWallet
5.0
/5
HELOCs
Best for high borrowing limit

National

95%

N/A

LEARN MORE
on NerdWallet
TD Bank

TD Bank: NMLS#399800

LEARN MORE
on NerdWallet
4.5
/5
HELOCs
Best for no minimum draw

Regional

89.90

620

LEARN MORE
on NerdWallet

Explore all of our lender picks by category

Bethpage Federal Credit Union
Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

4.5
HELOCs
NerdWallet rating
National / regional

National

Max LTV

85%

Min. credit score

670

Why We Like ItBethpage 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.
Cons
  • Must pay back closing costs if the line is open for three years or less.
Read Full Review
Figure

Figure: NMLS#1717824

Max LTV

85%

Min. credit score

640

National / regional

National

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.
Cons
  • Short draw period of two to five years.
  • Requires a $15,000 minimum initial draw.
  • Lender charges origination fees up to 4.99%.
Rate

Rate: NMLS#2611

National / regional

National

Min. credit score

640

Max LTV

85%

Why We Like ItBorrowers who want to know exactly what their payments will be can benefit from Rate's fixed-rate option.
Pros
  • CLTV borrowing limit over 80%.
  • The initial balance and any additional draws have a fixed interest rate.
  • Offers paths for rate discounts.
Cons
  • No information about annual fees.
  • Full amount (minus origination fee) must be drawn at closing.
Navy Federal
LEARN MORE
on NerdWallet
Navy Federal

Navy Federal: NMLS#399807

Max LTV

95%

National / regional

National

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.
Cons
  • Potential borrowers must qualify for credit union membership.
  • Only one repayment term option, which is 20 years.
TD Bank
LEARN MORE
on NerdWallet
TD Bank

TD Bank: NMLS#399800

National / regional

Regional

Max LTV

89.90

Min. credit score

620

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.
Cons
  • 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.
Flagstar
LEARN MORE
on NerdWallet
Flagstar

Flagstar: NMLS#417490

National / regional

National

Max LTV

85%

Min. credit score

700

Why We Like ItGood for: borrowers who want a wide range of choices — not only among mortgage products, but also in the channel they prefer, whether a branch, online or on the phone.
Pros
  • Offers a wide range of loan types and products, including FHA, VA and USDA.
  • Borrowers can apply and track loan status online.
  • Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
Cons
  • Home equity loans are geographically limited.
  • Origination fees are on the high side compared with other lenders, according to the latest federal data.
Truist
LEARN MORE
on NerdWallet
Truist

Truist: NMLS#399803

National / regional

National

Min. credit score

660

Max LTV

89%

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.
Cons
  • $50 annual fee.
  • Rates are not posted online.
  • Fixed-rate draws must be at least $5,000.
PNC
LEARN MORE
on NerdWallet
PNC

PNC: NMLS#446303

National / regional

National

Max LTV

89.80%

Min. credit score

600

Why We Like ItPNC 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.
Cons
  • Annual fee of $50.
  • Borrowers in California, North Carolina and New York will pay an origination fee.
Bank of America
LEARN MORE
on NerdWallet
Bank of America

Bank of America: NMLS#399802

National / regional

National

Max LTV

85%

Min. credit score

660

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.
Cons
  • Charges an early account closure fee.
  • Fined $12 million in 2023 for reporting inaccurate mortgage applicant info to the federal government.
State Employees' Credit Union
LEARN MORE
on NerdWallet
State Employees' Credit Union

State Employees' Credit Union: NMLS#430055

National / regional

Regional

Max LTV

90%

Min. credit score

600

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.
Cons
  • Credit union membership is limited by restrictive requirements.

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. Unlike a credit card, however, you shouldn’t use a HELOC to pay for everyday expenses. Just like with your first mortgage, you could lose your home to foreclosure if you aren’t able to make payments. Because of this risk, it’s best to use your equity to reinvest in your home with projects that will increase its value.

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 (usually 10) 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. The best rates are also typically reserved for borrowers with excellent credit scores and low amounts of existing debt.

Video preview image

» MORE: Understanding home equity lines of credit

Pros and cons of HELOCs

A HELOC's main advantage is that it offers flexibility. During the draw period, the minimum monthly payment usually covers just the interest on the balance, and you aren’t required to pay principal.

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.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.

While this has less flexibility than a HELOC, payments are predictable.

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. If rates have risen since you closed on your mortgage, this is unlikely to be your best option.

Finally, if you cannot qualify for a HELOC but absolutely need cash flow, 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 October 1, 2024

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 performance in NerdWallet’s HELOC category. For inclusion in this roundup, lenders must offer HELOCs and achieve a star rating of 4.5 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 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.

All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) maximum CLTV, (2) whether they offer a fixed-rate option, (3) annual fees, (4) origination fees, (5) transaction fees, (6) termination fees, (7) inactivity fees (8) initial draw requirements, (9) prepayment penalties, (10) rate discounts, (11) ease of application, (12) interest rate transparency, (13) fee transparency, (14) maximum CLTV transparency, (15) maximum APR transparency, (16) draw and repayment period transparency and (17) transparency on how borrowers access their funds. The highest scoring lenders appear on this page.

To recap our selections...

NerdWallet's Best HELOC Lenders of 2024

  • Bethpage Federal Credit Union: Best for fixed-rate option
  • Figure: Best for fast closing
  • Rate: Best for fixed-rate option
  • Navy Federal: Best for high borrowing limit
  • TD Bank: Best for no minimum draw
  • Flagstar: Best for existing Flagstar customers
  • Truist: Best for range of repayment terms
  • PNC: Best for fixed-rate option
  • Bank of America: Best for rate transparency
  • State Employees' Credit Union: Best for high borrowing limit
NerdWallet Pixel