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Best HELOC Lenders of 2025

Last updated on April 2, 2025
Taylor Getler
Written by 
Lead Writer & Content Strategist
Dawnielle Robinson-Walker
Edited by 
Editor & Content Strategist
Fact Checked
Taylor Getler
Written by 
Lead Writer & Content Strategist
Dawnielle Robinson-Walker
Edited by 
Editor & Content Strategist
Fact Checked

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Best HELOC Lenders of 2025

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

FourLeaf Federal Credit Union: NMLS#449104

4.5
/5
HELOCs
Best for no closing costs

National

85%

670

Figure

Figure: NMLS#1717824

4.0
/5
HELOCs
Best for fast closing

National

85%

640

Rate

Rate: NMLS#2611

4.0
/5
HELOCs
Best for fixed-rate borrowers

National

85%

640

State Employees' Credit Union

State Employees' Credit Union: NMLS#430055

LEARN MORE
on NerdWallet
4.5
/5
HELOCs
Best for North Carolina borrowers

Regional

90%

600

LEARN MORE
on NerdWallet
U.S. Bank

U.S. Bank: NMLS#402761

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on NerdWallet
5.0
/5
HELOCs
Best for fixed-rate borrowers

National

90%

660

LEARN MORE
on NerdWallet
Navy Federal

Navy Federal: NMLS#399807

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on NerdWallet
5.0
/5
HELOCs
Best for military members and their families

National

95%

N/A

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on NerdWallet
TD Bank

TD Bank: NMLS#399800

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on NerdWallet
4.5
/5
HELOCs
Best for high borrowing limit

Regional

89.90

620

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on NerdWallet
PenFed

PenFed: NMLS#401822

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on NerdWallet
4.0
/5
HELOCs
Best for fast closing

National

85%

680

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on NerdWallet
Truist

Truist: NMLS#399803

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on NerdWallet
5.0
/5
HELOCs
Best for fixed-rate borrowers

National

89%

660

LEARN MORE
on NerdWallet
PNC Bank

PNC Bank: NMLS#446303

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on NerdWallet
5.0
/5
HELOCs
Best for high borrowing limit

National

89.90%

600

LEARN MORE
on NerdWallet
Bank of America

Bank of America: NMLS#399802

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on NerdWallet
5.0
/5
HELOCs
Best for no closing costs

National

85%

660

LEARN MORE
on NerdWallet
Golden 1 Credit Union

Golden 1 Credit Union: NMLS#669333

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on NerdWallet
4.0
/5
HELOCs
Best for California borrowers

Regional

80%

N/A

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on NerdWallet
Citizens Bank

Citizens Bank: NMLS#433960

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on NerdWallet
4.0
/5
HELOCs
Best for fast closing

National

80%

N/A

LEARN MORE
on NerdWallet

Explore all of our lender picks by category

How a HELOC works

A HELOC allows you to borrow as needed up to a certain credit limit. As you pay it down, you’re able to continue borrowing more. This flexibility can be convenient if you’re financing a series of expenses.

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 can’t borrow any more and you pay the principal plus interest.

To obtain the best HELOC rates, make sure you shop around with at least three lenders. This will help you find the combination of features and interest rates that make the best HELOC for your needs. The best rates are also typically reserved for borrowers with excellent credit scores and little existing debt.

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Pros and cons of HELOCs

Pros

  • Flexibility. You can borrow what you need as you need it, up to your credit limit. 

  • Low initial payments. During the draw period, the minimum monthly payment usually covers just the interest on the balance, and you aren’t required to pay the principal.

Cons

  • Payments can be unpredictable. Most HELOCs have a variable interest rate, which means it can go up or down over time. When the interest rate rises, the minimum monthly payment will increase, too. 

  • Risk of foreclosure. If you can’t keep up with your monthly payments — especially if you made the minimum interest payment during the draw period and aren’t prepared to pay the principal — you could lose your home. 

Alternatives to HELOCs

A HELOC is not your only option for tapping your home's equity.

  • Home equity loans: You receive the cash as a lump sum and pay it back at a fixed rate. While this has less flexibility than a HELOC, payments are predictable. This can be a solid choice if you know exactly how much you need to borrow. 

  • Cash-out refinances: Replaces your original mortgage with a larger one, and you receive the difference between the new loan amount and your current mortgage balance in cash. This is likely to be your best option if rates have fallen since you closed on your mortgage.

  • Shared appreciation agreements: For those who cannot qualify for a HELOC but need cash flow. You 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 not enough savings. Most consumers are better served by a HELOC if they qualify. 

More from NerdWallet

Last updated on April 2, 2025

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. This requirement expires after the 2025 tax year.

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 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 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 HELOCs were evaluated based on (1) HELOC loan volume, (2) maximum CLTV, (3) whether they offer a fixed-rate option, (4) annual fees, (5) origination fees, (6) transaction fees, (7) initial draw requirements, (8) length of draw and repayment terms, (9) application availability online or via mobile app, (10) range of customer support options, (11) average closing time transparency, (12) interest rate transparency and (13) transparency regarding how to access funds. A recent regulatory action against a lender may affect its HELOC star rating. The highest scoring lenders appear on this page.

To recap our selections...

NerdWallet's Best HELOC Lenders of 2025

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