A home equity line of credit (HELOC) is a way to use some of the equity you’ve built in your home to cover expenses. You can use a HELOC for all sorts of large expenses, from home renovations to emergency bills to debt consolidation.
A HELOC is a secured loan backed by your property. That means if you default on your loan, your lender may take possession of your house and sell it to pay what you owe. In other words, it’s one of the bigger financial moves you can make. It’s wildly important to choose a lender that’s a great fit for your situation and needs, as each product varies by interest rate, maximum loan amount, repayment period, and more.
Below are our picks for the top seven HELOC lenders for common financial situations.
Rates, fees, and loan amounts checked Jan. 22, 2026, and are subject to change.
Best HELOC lenders of January 2026
Best for fast funding
Rate Mortgage
| Max loan amount | $400,000 |
| Min. APR | 6.25% |
| Max loan term | 30 years |
at Bankrate
- Year Founded: 2000
- Company Headquarters: Chicago, IL
- CEO: Victor F. Ciardelli III
Rate Mortgage is a massive lender offering a long list of home loan options—including some of the best HELOCs you’ll find anywhere. Its APR and fees are low, its rates are fixed, and its maximum repayment period is comparatively lengthy. Its best feature in our analysis, however, is the fast funding. You can potentially receive your funds within a week of submitting your application.
That said, Rate falls short in some areas. For example, the maximum draw period is five years (half the length of the average HELOC offered by competitors). You also can’t borrow more than $400,000 in equity. That’s one of the stingiest limits of any major lender we’ve come across.
Best for lengthy repayment terms
PNC Bank
| Max loan amount | $750,000+ |
| Min. APR | 7.49% |
| Max loan term | 40 years |
at MoneyLion
- Year Founded: 1983
- Company Headquarters: Pittsburgh, PA
- CEO: Bill Demchak
PNC is a full-service bank primarily located on the East Coast (though 44 states qualify for a HELOC as of this writing). Its minimum APR is competitive, though not the absolute lowest on our list—but this bank allows for loan amounts of more than $750,000. To complement the high borrowing power, it offers up to a whopping 30 years to repay your loan after a 10-year draw period. That provides the ability to repay your loan in smaller monthly installments.
Best for low intro APR
FourLeaf Student Savings
| Max loan amount | $1 million |
| Min. APR | 5.99% (intro) |
| Max loan term | 30 years |
at FourLeaf Federal Credit Union
- Year Founded: 1941
- Company Headquarters: Bethpage, NY
- CEO: Linda Armyn
Headquartered in Bethpage, New York, FourLeaf Credit Union is a financial institution concentrated within Long Island. Its HELOCs have no geographic restrictions. You’ll find standard draw and repayment terms, a fixed-rate lock option, low fees, and an impressive $1 million maximum loan amount. Helpfully, FourLeaf Credit Union offers a low intro interest rate of 5.99% for 12 months (for lines up to $500,000). After that, you could be charged as little as 6.75% variable APR for the remainder of your loan term.
Beset for a high borrowing amount
Truist Bank
| Max loan amount | $1+ million |
| Min. APR | 7.00% |
| Max loan term | 30 years |
at Truist Bank
- Year Founded: 1872
- Company Headquarters: Charlotte, NC
- CEO: William H. Rogers
Truist is a full-service financial institution with nearly 2,000 branches around the country. It’s a great option for those who like the option of managing their mortgage in-person. Beyond its comparatively low variable APR, you’ll also have the ability to borrow more than $1 million. That’s a rarity among major lenders, and it’s a compelling reason to choose Truist if you’d like to borrow seven figures worth of equity.
Beyond that, Truist HELOCs are largely standard. Expect a 10-year draw period, a repayment period of up to 20 years, and a $50 annual fee (depending on your location).
Best for low fees
Bank of America
| Max loan amount | $1 million |
| Min. APR | Varies by location |
| Max loan term | 30 years |
at Bank of America
- Year Founded: 1904
- Company Headquarters: Charlotte, NC
- CEO: Brian Moynihan
In addition to APR, many financial institutions charge ancillary fees when opening a HELOC. These can potentially cost several thousand dollars—which can make borrowing your equity unappealing. Bank of America is a player that waives virtually all fees, from closing fees to origination fees to annual fees.
The catch is that you might get an APR that’s comparatively high. Depending on your location, you may pay over 8.50% variable APR after the six-month intro APR offer expires, for example.
Best for low equity
Better
| Max loan amount | $500,000 |
| Min. APR | 9.00% |
| Max loan term | 30 years |
at Better
- Year Founded: 2014
- Company Headquarters: New York, NY
- CEO: Vishal Garg
In some ways, Better’s HELOC terms aren’t as generous as competing lenders. For example, you’re capped at borrowing $500,000—and you must draw at least $50,000 or 75% of your credit limit, whichever is greater, immediately. That means this isn’t a good option for those who want to use it as an emergency fund, as you’ll begin paying considerable APR straightaway.
That said, it’s likely perfect for those who have little equity in their home and have imminent plans to utilize a HELOC. Better can (potentially) deliver your funds in less than a week—as quickly as one day, in fact. Qualified borrowers can also tap up to 90% of their home’s equity. That’s more generous than most other lenders which typically allow a maximum borrowing amount of of 80% to 85% of your equity.
Best for military members
Navy Federal Credit Union
| Max loan amount | $500,000 |
| Min. APR | 7.25% |
| Max loan term | 40 years |
at MoneyLion
- Year Founded: 1933
- Company Headquarters: Vienna, VA
- CEO: Dietrich Kuhlmann
Arguably the best HELOC lender, Navy Federal, can be accessed exclusively by active duty military, veterans, Department of Defense employees, and immediate family members and household members. We find that it bests other lenders in virtually every category.
Navy Federal allows borrowers to tap up to an incredible 95% of the home’s equity. This credit union also offers a lengthy 20-year draw period followed by a 20-year repayment period. You won’t be charged closing costs, application, origination, or annual fees. If you’re eligible for membership to Navy Federal and you need to borrow $500,000 or less, it’s a no-brainer choice.
What to know about HELOCs
Home equity is the difference between your property’s value and your outstanding mortgage balance. For example, if your home is valued at $300,000 and you owe $100,000 on your mortgage, you’ve got $200,000 (or 66%) in equity. Most lenders require that you keep at least 15% equity in your home, so you’ll need more than that if you’d like to borrow.
When you open a HELOC, you’re given a revolving line of credit (up to the amount of your available equity, depending on how much you apply for). You can amass a balance and pay it down as you please, similar to a credit card. You’ll only pay interest on the portion of your credit line that you’re actually using—meaning a large portion of your HELOC can sit in the wings without racking up APR.
The life of a HELOC is made of two parts:
- Draw period: This is the window at which you can spend your credit line. It often lasts 10 years or less.
- Repayment period: After your draw period ends, you won’t be able to borrow anymore. You’ll be required to repay any outstanding balance, either all at once or in equal monthly installments. It often lasts 20 years or more
Pros and cons of HELOCs
Pros
- Revolving credit structure lets you reuse your loan amount multiple times
- You’ll only pay interest on the funds you use
- Initial interest-only payments keep upfront costs low
Cons
- You may lose your home if you fail to pay off your loan
- Interest rates are typically variable
- Lowers your home equity until repaid
How to choose the best HELOC for you
HELOCs generally function the same across the board—but that doesn’t mean they’re created equal. Below are the features you should consider when choosing the right home equity line of credit for your unique needs.
Loan amount
Not all financial institutions offer the same borrowing power. Yes, lenders commonly state that you can borrow between 80% and 85% of your home’s equity; but you’ll often still be subject to a maximum loan amount.
All to say, just because you’ve got the equity doesn’t mean you can borrow it. For example, if you want to access $1 million in equity, you’ll have to search around to find a lender willing to do it.
Draw period
How long do you need access to your funds? The typical maximum amount you can spend your equity with a HELOC is 10 years, but it varies by lender. If you’d like to keep your line of credit active for a long time (perhaps as an emergency fund), a shorter draw period likely won’t be worthwhile.
Repayment term
The longer your repayment term, the lower your monthly payments. This is especially critical when you plan to have a sizable balance when your draw period ends. If you plan to pay down your balance before then, this may not be as weighty of a factor for you.
Annual percentage rate (APR)
The estimated APR you’ll pay for borrowing funds should be a big consideration when choosing a lender. You’ll typically find a wide range of HELOC interest rates which may vary by credit score, location, and more. Some even offer an intro APR period, which is especially helpful for those who only need to borrow for a year or less.
Most HELOCs charge variable APR—but some provide the option to convert a portion of your loan to a fixed rate.
Fees
The money you’ll pay to open a HELOC varies greatly by lender. From origination fees to closing costs, this can amount to many thousands of dollars. Some also come with annual fees which are often $50 or more.
Funding time
From the time you submit your application to the time you receive access to your HELOC often takes weeks or months. Some lenders, however, offer an expedited experience. If you need the funds ASAP, select lenders may be able to deliver in less than a week.
How to get a good rate on a HELOC
The strategy to getting a good rate on a HELOC is straightforward. Those with the most impressive credit profiles and the least red flags will generally get the best APRs. Show the bank you’re not a risky borrower, and your APR should be comparatively favorable. Here’s how to do it:
- Make on-time payments: The best thing you can do for your credit score is to avoid late payments. Be sure to always make at least the minimum payment for your current loans each month.
- Keep credit utilization low: High credit card balances can dramatically lower your credit score. Try to pay down those debts (experts recommend using no more than 30% of your available credit) before applying for a HELOC.
- Don’t submit lots of loan applications beforehand: When you apply for any sort of loan, your credit inquiry will land on your credit report. If you apply for several loans before going for a HELOC, it could give the impression that you’re desperate for money. Lenders may consider this a red flag.
- Keep your DTI low: Debt-to-income ratio is the amount of your income that’s committed to paying off debt each month. Lenders look for an acceptable debt-to-income ratio to decide if you can handle another monthly payment. A DTI of 40% or less is preferable.
If any of these details can be improved before you take out your loan, it could be a good idea to delay taking out a HELOC until then.
It’s a good idea to “rate shop” to find your best options. Many lenders will give you the option to prequalify for a loan which can give you an idea of your expected APR and your odds of getting approved when formally submitting an application.
Alternatives to a HELOC
If you don’t think a HELOC suits your situation, there are other ways to procure a large upcoming purchase. Other common methods include:
- Home equity loan: Home equity loans are an alternate way to borrow equity from your home for a big expense. Instead of getting a revolving credit line, you’ll receive a large upfront sum of money and immediately be enrolled in an installment plan with fixed interest rates to repay your loan. Depending on the lender, you’ll still be subject to closing costs, origination fees, and a long wait period before you get the money.
- Personal loan: Similar to a home equity loan, a personal loan comes in the form of an upfront lump sum deposited into your bank account. These often come with fewer upfront expenses than borrowing from your equity. Some banks even advertise same-day funding. A personal loan is good for those who need money in a hurry and haven’t built home equity.
- Credit cards: Credit cards are generally a poor option for financing a large purchase thanks to their high interest rates. They’re better for common purchases like groceries, gas, utilities, etc. Still, some credit cards come with 0% intro APR for up to two years—so they may be a good option for a purchase you can pay off relatively quickly.
Another less formal way to borrow money is to ask friends and family. It’ll help to avoid interest, and there are no official application restrictions.
Frequently asked questions
Which HELOC lenders offer the fastest closing times?
Several HELOC lenders offer expedited closing times to help you get your funds in a hurry. While borrowing your home equity can often take weeks (or even months), products from Rate, CrossCountry Mortgage, Upstart, PenFed, and Better allow you to potentially begin using your HELOC in less than a week.
Do any HELOC lenders offer no closing costs or low fees?
Some lenders advertise no closing costs or associated fees (think appraisal fees, origination fees, title search fees, annual fees, etc.). Examples include Navy Federal, FourLeaf Federal Credit Union, Bank of America, and U.S. Bank.
Can I use a HELOC from top lenders for investment properties or second homes?
Yes, you can likely use a HELOC to fund your purchase of investment properties or multiple homes. Just be aware that this will result in multiple new mortgages which can potentially strain your monthly budget and adversely affect your debt-to-income ratio.
Which HELOC lender is best for military members or veterans?
Navy Federal is our pick as best for military members and veterans thanks to its impressive draw period, low fees, and reasonable APR.
Can I get a HELOC if I have poor or fair credit?
You can possibly get a HELOC with a fair credit score. Lenders typically require at least a fair credit score of 620 to qualify. If your score is below 620, it’s a good idea to improve your credit profile before applying for a HELOC.
Our methodology
Coins2Day compared 20 top lenders offering home equity lines of credit to give you our selections for the seven best options for a variety of financial situations. We ranked each HELOC according to the following elements:
- Minimum APR (23%): Lenders typically issue a range of possible interest rates you may receive based on your creditworthiness. Obviously, the lowest possible interest rate is the best.
- Maximum draw period (15%): The longer a HELOC’s draw period, the longer you have to spend your home equity. It’s often possible to refinance a HELOC to renew your draw period, but that can be an expensive hassle.
- Maximum repayment term (15%): You’ll ideally pay off your outstanding HELOC balance quickly to pay minimal interest. However, the option to repay at your leisure is a big benefit.
- Discloses fee information (10%): Some lenders play frustratingly close to the vest when it comes to the fees you’ll pay for opening a HELOC. We favored the financial institutions that gave customers a peek behind the curtain.
- Maximum loan amount (15%): The greater the potential borrowing power, the higher a HELOC scored in our evaluation. The maximum loan amount can vary by several hundred thousand dollars depending on the lender.
- Expedited funding (10%): For those that need money in a hurry, lenders offering a fully online application process and potential closing times in less than a week earned extra points in our evaluation.
- Fixed-rate lock option (7%): HELOCs are generally issued with a variable interest rate, meaning the APR you pay will fluctuate based on market rates. Some HELOCs allow you to convert a portion of your borrowed amount to a fixed APR.
- Annual fee (5%): Though HELOCs only charge interest for the portion of your credit line that you actually use, some charge an annual fee. So even if you don’t use your HELOC, you may still be subject to a fee.
