10 Best Home Equity Loan Lenders of January 2026
Last updated on December 23, 2025
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Written by
Lead Writer & Content StrategistReviewed by
Lead Writer & SpokespersonEdited by
Managing EditorFact Checked
Fact Checked
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A home equity loan is a second mortgage that lets you turn your home’s value into cash. Shop NerdWallet’s picks for the best home equity loan products below.
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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.
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Why trust NerdWallet
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.
10 Best Home Equity Loan Lenders of January 2026
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Better: Best for rate shopping
Max LTV
90%
Min. credit score
680
National / regional
National
- Why we like itOnline lender Better’s home equity loans offer flexible terms and personalized rate tools, but application or support options are somewhat limited.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Borrowers can personalize home equity loan rates online.
ConsRead full review- Home equity loans for second homes are not clearly available.
- Limited application and customer support options.
Veterans United: Best for military borrowers
- Why we like itVeterans United’s home equity loans feature high borrowing limits and long-term options, with average closings in three weeks. Be aware that the loan will come from a third-party partner.Pros
- Offers a higher than typical borrowing limit.
- Option for a term of 30+ years, making payments more affordable.
- Faster average time to close than many lenders surveyed by NerdWallet.
ConsRead full review- Does not post sample home equity loan rates online.
- Originates home equity loans with a third-party partner.
CrossCountry Mortgage: Best for high borrowing limit
Max LTV
90%
Min. credit score
640
National / regional
National
- Why we like itCrossCountry’s home equity loans offer long, flexible terms and high borrowing limits, but require an appraisal and lack transparent rate information online.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Option for a term of 30+ years, making payments more affordable.
ConsRead full review- Does not post sample home equity loan rates online.
- Requires an appraisal.
New American Funding: Best for high borrowing limit
- Why we like itNew American Funding’s home equity loans feature flexible terms, relatively speedy closings and high borrowing limits, but lack rate transparency.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Faster average time to close than many lenders surveyed by NerdWallet.
ConsRead full review- Appraisal required.
- Does not post sample home equity loan rates online.
SoFi: Best for repayment options
- Why we like itSoFi’s home equity loans offer flexible term options and make sample rates available for customization online, but require an appraisal and may have slower closings than some lenders.Pros
- Flexible term options, including terms of 30+ years.
- Borrowers can personalize home equity loan rates online.
- Home equity loans are available for second homes.
ConsRead full review- Appraisal required.
- Time to close is average among lenders surveyed by NerdWallet.
AmeriSave: Best for high borrowing limit
5.0
NerdWallet rating
Max LTV
90%
Min. credit score
640
National / regional
National
- Why we like itAmeriSave’s home equity loan offers high borrowing limits and flexible long-term options, but lacks rate transparency.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Option for a term of 30+ years, making payments more affordable.
Cons- Does not post sample home equity loan rates online.
- Limited application options.
loanDepot: Best for high borrowing limit
- Why we like itLoanDepot’s home equity loans feature high borrowing limits, long-term options, and no appraisal requirement, but may have slower closing times.Pros
- Offers a higher than typical borrowing limit.
- Option for a term of 30+ years, making payments more affordable.
ConsRead full review- Does not post sample home equity loan rates online.
- Slower average time to close than many lenders surveyed by NerdWallet.
Guild Mortgage: Best for repayment options
Max LTV
90%
Min. credit score
680
National / regional
National
- Why we like itGuild’s home equity loans feature flexible terms and high borrowing limits, but lack rate transparency, and may have slower closing times.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Home equity loans are available for second homes.
ConsRead full review- Appraisal required.
- Does not post sample home equity loan rates online.
- Slower average time to close than many lenders surveyed by NerdWallet.
Flagstar: Best for no closing costs
- Why we like itFlagstar’s home equity loans may close in three weeks, with no closing costs, but require an appraisal and aren’t available for second homes.Pros
- No closing costs.
- Borrowers can personalize home equity loan rates online.
ConsRead full review- Appraisal required.
- Home equity loans are not available for second homes.
PNC Bank: Best for variety of term options
Max LTV
85%
Min. credit score
680
National / regional
National
- Why we like itPNC Bank’s home equity loans feature long-term options and are available for second homes, but require an appraisal and may have slower closing times.Pros
- Available for second homes.
- Option for a term of 30+ years, making payments more affordable.
ConsRead full review- Does not post sample home equity loan rates online.
- Slower average time to close than many lenders surveyed by NerdWallet.
How we chose the best home equity loan lenders
Our team of mortgage experts follows an objective, consumer-first methodology to assess home equity loan lenders and pick the best.
40
Lenders reviewed
40
Lenders reviewed
We reviewed 40 lenders, including major banks, credit unions, and online lenders operating across multiple states.
10
Categories assessed
10
Categories assessed
Each lender is evaluated across 10 weighted categories covering maximum borrowing limits, closing costs, appraisal requirements, term options (including the longest repayment term), rate transparency, average time to close, availability for second homes, application availability and and customer support options.
40+
Data points analyzed
40+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually for reviewed lenders, ensuring up-to-date, accurate comparisons.
Star rating categories
We evaluate the following categories and carefully weigh how each factor impacts your experience.
5.0
Overall score
NerdWallet reviewed 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 home equity loans were evaluated based on (1) maximum CLTV, (2) closing costs, (3) appraisal requirements, (4) repayment term options, (5) rate transparency, (6) average time from application to close, (7) availability for second homes, (8) number of ways to apply and (9) customer support options. The highest scoring lenders appear on this page.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews.
How a home equity loan works
You build equity in your home in two ways: by making monthly mortgage payments and through market changes that increase your home’s value.
Once you’ve paid at least 15%-20% of your home’s value, you can borrow against that amount with a home equity loan. You’ll receive the money you borrow as a lump sum with a fixed interest rate.
Shopping around with at least three lenders can help get you the best rate. Your home equity loan rate is determined by financial qualifications, such as:
- Debt-to-income ratio, or DTI. This is the percentage of your monthly income that is set aside for your other debts, like car payments and student loans. A DTI ratio no higher than 43% will help you qualify with most lenders.
- Credit score. Most lenders on this list look for a minimum credit score of 680 or higher.
- The amount you’re borrowing. Lenders’ lowest advertised rates usually assume that the loan is worth a minimum amount. For example, the lender might give the best rate offers to borrowers taking out at least 60% of their home equity.
MORE NERDY PERSPECTIVE 🤓
 | How can I get the best home equity loan rates? The best interest rates for home equity loans tend to go to borrowers with the highest credit scores and lowest amounts of debt. If you're planning to apply for a home equity loan, my best advice is to get your financial profile in shape first— you can save thousands in interest payments. - Taylor Getler, Lead Writer, Mortgages |
Alternatives to a home equity loan
Home equity loans aren’t your only option for accessing equity. HELOCs and cash-out refinances also allow you to turn some of your home equity into cash.
- A line of credit that you borrow against as you need it. You don’t need to know exactly how much you’ll need beforehand, just an estimate.
- Has an adjustable interest rate. This 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.
Features of the loan | HELOC | Home equity loan |
|---|---|---|
Loan funding | You can draw funds as needed, up to a certain limit (typically a percentage of your equity). | You receive a lump sum at closing (typically a percentage of your equity). |
Terms | Begins with a draw period (typically 10 years) with interest-only minimum payments. This is followed by a repayment period (often up to 20 years) that requires you to pay back principal and interest. | Repayment periods are often up to 30 years. Minimum payments include both interest and principal. |
Rates | Variable, (though some lenders offer a fixed-rate option) | Fixed |
Borrowing limits | You can typically borrow between 80%-85% of the equity in your home. Some lenders allow for more. Use NerdWallet's HELOC calculator for personalized details. | You can typically borrow between 80%-85% of the equity in your home. Some lenders allow for more. Use NerdWallet’s home equity loan calculator for personalized details. |
Lenders | See top of page. |
- Replaces your mortgage with a larger new loan.
- You get the difference between the new higher loan amount and the amount owed as a cash payment.
- Interest rates are generally higher than a standard refinance, but lower than home equity loans or HELOCs.
- Check out NerdWallet's best lenders for a cash-out refinance.
Last updated on December 23, 2025
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.
- You'll need a credit score that is at least 680 to qualify for a home equity loan with most lenders on this list. A higher score will help you qualify with more lenders.You may also need to have at least 20% home equity. This means the remaining balance on your original mortgage is no more than 80% of your home's current value.
Methodology
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
