BEST OF

8 Best Home Equity Loan Lenders of 2023

If you're interested in a home equity loan, we'll help you choose the best home equity loan lender.

By Taylor Getler 

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NerdWallet has reviewed the leading home equity lenders in the nation and has found some standouts when it comes to the best home equity loans. Consider your home equity loan needs and then shop the lenders below — and if you want to consider other home equity products, read on for more about your options.

Best Home Equity Loan Lenders

NBKC: NMLS#409631

5.0

NerdWallet rating 
NBKC

National / regional

National

Max LTV

90%

Min. credit score

620

Min. credit score

620

Why we like it

NBKC can be a strong choice for borrowers in the Kansas City metro area.

Pros

  • Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.

  • Offers low rates and fees compared with other lenders, according to the latest Federal data.

  • Displays customized rates, with fee estimates, without requiring contact information.

Cons

  • HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.

Read Full Review

New American Funding: NMLS#6606

4.5

NerdWallet rating 
New American Funding

National / regional

National

Max LTV

97.5%

Min. credit score

620

Min. credit score

620

Why we like it

Good for: First-time home buyers and other borrowers looking for a broad array of loan choices.

Pros

  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.

  • Its home equity line of credit can be used for an owner-occupied or second home.

  • Offers a program to enable buyers to make cash offers.

Cons

  • Mortgage origination fees tend to be on the high end, according to the latest federal data.

Read Full Review

Flagstar: NMLS#417490

4.5

NerdWallet rating 
Flagstar

National / regional

National

Max LTV

89%

Min. credit score

680

Min. credit score

680

Why we like it

Flagstar offers one of the highest loan limits among home equity loan lenders researched by NerdWallet.

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.

Read Full Review

San Diego County Credit Union: NMLS#580585

5.0

NerdWallet rating 
San Diego County Credit Union

Min. down payment

5%

National / regional

Regional

Why we like it

San Diego County Credit Union can be a strong choice for California borrowers.

Pros

  • Offers purchase, refinance and jumbo mortgages, plus loans for second homes and home equity products.

  • Provides customized rate and fee quotes without requiring contact information.

Cons

  • SDCCU only serves the California market

Read Full Review

US Bank: NMLS#402761

4.5

NerdWallet rating 
US Bank

National / regional

National

Max LTV

70%

Min. credit score

620

Min. credit score

620

Why we like it

US Bank offers convenient online banking for borrowers.

Pros

  • Offers a full line of conventional and government loan products.

  • Provides home equity loans and lines of credit.

  • Allows borrowers to apply and track their loan's progress online.

Cons

  • No personalized mortgage rates available online.

  • Published mortgage rates assume an above-average credit score.

Read Full Review

Navy Federal: NMLS#399807

4.5

NerdWallet rating 
Navy Federal

National / regional

National

Min. down payment

0%

Why we like it

Navy Federal offers flexibility to borrowers with a wide range of loan terms.

Pros

  • Offers a wide range of affordable mortgage products, including 0% down payment loans, designed for military members.

  • Offers HELOCs and home equity loans.

  • Offers low rates compared with most lenders, according to the latest federal data.

Cons

  • Website does not provide customized mortgage rates based on credit score or other factors before you apply.

  • Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors.

Read Full Review

Golden 1 Credit Union: NMLS#669333

4.5

NerdWallet rating 
Golden 1 Credit Union

National / regional

Regional

Max LTV

N/A

Min. credit score

N/A

Min. credit score

N/A

Why we like it

Golden 1 Credit Union offers flexibility to borrowers with a wide range of loan terms.

Pros

  • Offers a variety of purchase and refinance loans, including jumbo mortgages.

  • Has a preferred real estate agent program that can save a borrower money on closing costs.

  • Offers some flexibility on guidelines for loan qualification.

Cons

  • Does not offer VA or USDA loans.

  • Products available only to California residents.

Read Full Review

Carrington: NMLS#2600

4.5

NerdWallet rating 
Carrington

National / regional

National

Max LTV

95%

Min. credit score

640

Min. credit score

640

Why we like it

Good for: first-time home buyers or credit-challenged borrowers interested in government loan products.

Pros

  • Offers multiple low-down-payment loan programs.

  • May consider alternative credit data, such as bank statements.

  • You can view customized rates for purchasing a home and apply online.

Cons

  • Doesn't offer home equity lines of credit.

  • Lender fees are on the high side, according to the latest federal data.

Read Full Review

How a home equity loan works

As you make monthly mortgage payments, you’re building equity in your home. You’re growing the share of your home that you actually own, and once you have enough equity (typically at least 15-20%), you can borrow against it and spend the cash as you wish. 

You’ll receive it all at once in the form of a loan, which is why a home equity loan can be a popular choice for borrowers who know exactly how much they’ll need to accomplish their goals. Shopping around to multiple lenders can help ensure that you get the best rate, which is determined by your debt-to-income ratio, credit score and the amount of equity that you’re borrowing, among other factors. 

Alternatives to a home equity loan

Home equity loans aren’t your only option for accessing equity. Along with home equity loans, HELOCs and cash-out refinances also allow you to turn some of your home equity into cash, to use as you see fit.

Your home is the collateral for all three of these loan types, so it's considered safest to use the cash in a way that will improve your financial position. That's one reason these are often used for value-adding home renovations.

Here are some of the key things to know when you're comparing home equity loans, HELOCs and cash-out refinances.

  • Provides you with a one-time payment that you pay back over time at a fixed rate. You'll pay off this loan in addition to your mortgage, since a home equity loan is technically a second mortgage.

  • Can have a shorter loan term, depending on how much you borrow and how quickly you want to repay the loan.

  • Gives you a line of credit that you borrow against as you need it, rather than requiring you to figure out an exact sum beforehand (though it's still good to have an idea of the approximate total).

  • Has an adjustable interest rate, which means that your interest rate will change over the life of the loan. Some lenders also offer a fixed-rate option.

  • Check out NerdWallet's best HELOC lenders.

  • Replaces your mortgage with a new home loan that's greater than the amount already owed on your existing mortgage. You get the difference between the higher loan amount and the amount owed as a cash payment.

  • Generally has a higher interest rate than a rate-and-term refinance, but a lower rate than home equity loans or HELOCs.

More from NerdWallet

Last updated on January 9, 2023

Methodology

The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.

The lenders on this page are chosen using this 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.

For inclusion in this roundup, lenders must offer home equity loans and achieve at least an overall 4.5 star rating from NerdWallet.

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 Home Equity Loan Lenders of 2023

Frequently asked questions