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.
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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.
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
Lender | NerdWallet rating | National / regional | Max LTV | Min. credit score | Learn more |
|---|---|---|---|---|---|
 NBKC: NMLS#409631 | Best for Kansas City borrowers | National | 90% | 620 | Read review |
 New American Funding: NMLS#6606 | Best for variety of loan types | National | 97.5% | 620 | Read review |
 Flagstar: NMLS#417490 | Best for large loans | National | 89% | 680 | Read review |
 San Diego County Credit Union: NMLS#580585 | Best for California borrowers | Regional | N/A | N/A | Read review |
 US Bank: NMLS#402761 | Best for large loans | National | 70% | 620 | Read review |
 Navy Federal: NMLS#399807 | Best for variety of loan terms | National | N/A | N/A | Read review |
 Golden 1 Credit Union: NMLS#669333 | Best for variety of loan terms | Regional | N/A | N/A | Read review |
 Carrington: NMLS#2600 | Best for large withdrawals | National | 95% | 640 | Read review |
NBKC: NMLS#409631
National / regional
NationalMax LTV
90%Min. credit score
620New American Funding: NMLS#6606
National / regional
NationalMax LTV
97.5%Min. credit score
620Flagstar: NMLS#417490
National / regional
NationalMax LTV
89%Min. credit score
680San Diego County Credit Union: NMLS#580585
Min. down payment
5%National / regional
RegionalUS Bank: NMLS#402761
National / regional
NationalMax LTV
70%Min. credit score
620Navy Federal: NMLS#399807
National / regional
NationalMin. down payment
0%Golden 1 Credit Union: NMLS#669333
National / regional
RegionalMax LTV
N/AMin. credit score
N/ACarrington: NMLS#2600
National / regional
NationalMax LTV
95%Min. credit score
640How 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.
Check out NerdWallet's best lenders for a cash-out refinance.
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
- NBKC: Best for Kansas City borrowers
- New American Funding: Best for variety of loan types
- Flagstar: Best for large loans
- San Diego County Credit Union: Best for California borrowers
- US Bank: Best for large loans
- Navy Federal: Best for variety of loan terms
- Golden 1 Credit Union: Best for variety of loan terms
- Carrington: Best for large withdrawals
Frequently asked questions
Home equity loan rates vary from day to day and from one lender to another. To make sure you're getting a good home equity loan rate, compare offers from at least three lenders. It may seem simpler to get a home equity loan from your current mortgage lender, but that might not get you the best deal.
If you need a large amount of cash, a home equity loan will likely get you a lower interest rate than a comparable personal loan. But if you need to borrow $10,000 or less, a personal loan, or even a credit card, could do the job — and you won't be using your home as collateral.
To qualify for a home equity loan, you'll need a credit score that is at least 620, though many lenders will look for a higher minimum score. You may also need to have at least 20% home equity, meaning you have paid off an amount of your original mortgage that's equal to 20% or more of your home's current value.
