Best HELOC Lenders of 2025




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A home equity line of credit, or HELOC, is a second mortgage that lets you convert some of the equity in your home back into debt in exchange for cash. Your equity is the value of your home, minus any remaining mortgage balances.
The interest rate on a HELOC tends to be lower than rates on credit cards and personal loans. Lenders use your combined-loan-to-value ratio, or CLTV, to decide if you have enough equity for a HELOC. NerdWallet has chosen some of the best HELOC lenders to help you find the one that's right for you.
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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.
- Governed by NerdWallet's strict guidelines for editorial integrity.
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: NMLS#449104 Top 3 most visited 🏆 Learn more at FourLeaf Federal Credit Union | National | 85% | 670 | Top 3 most visited 🏆 Learn more at FourLeaf Federal Credit Union | |
National | 85% | 640 | |||
National | 85% | 640 | Learn more at Rate | ||
Regional | 90% | 600 | LEARN MORE on NerdWallet | ||
National | 90% | 660 | LEARN MORE on NerdWallet | ||
National | 95% | N/A | LEARN MORE on NerdWallet | ||
Regional | 89.90 | 620 | LEARN MORE on NerdWallet | ||
National | 85% | 680 | LEARN MORE on NerdWallet | ||
National | 89% | 660 | LEARN MORE on NerdWallet | ||
National | 89.90% | 600 | LEARN MORE on NerdWallet | ||
National | 85% | 660 | LEARN MORE on NerdWallet | ||
Regional | 80% | N/A | LEARN MORE on NerdWallet | ||
National | 80% | N/A | LEARN MORE on NerdWallet |
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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.

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.
» MORE: Best home equity loan lenders
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.
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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.
NerdWallet's Best HELOC Lenders of 2025
- FourLeaf Federal Credit Union: Best for no closing costs
- Figure: Best for fast closing
- Rate: Best for fixed-rate borrowers
- State Employees' Credit Union: Best for North Carolina borrowers
- U.S. Bank: Best for fixed-rate borrowers
- Navy Federal: Best for military members and their families
- TD Bank: Best for high borrowing limit
- PenFed: Best for fast closing
- Truist: Best for fixed-rate borrowers
- PNC Bank: Best for high borrowing limit
- Bank of America: Best for no closing costs
- Golden 1 Credit Union: Best for California borrowers
- Citizens Bank: Best for fast closing