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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- 50+ mortgage lenders reviewed and rated by our team of experts.
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- 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 | ||
 State Employees' Credit Union: NMLS#430055 LEARN MORE on NerdWallet | Regional | 90% | 600 | LEARN MORE on NerdWallet | |
 U.S. Bank: NMLS#402761 LEARN MORE on NerdWallet | National | 90% | 660 | LEARN MORE on NerdWallet | |
 Navy Federal: NMLS#399807 LEARN MORE on NerdWallet | National | 95% | N/A | LEARN MORE on NerdWallet | |
 TD Bank: NMLS#399800 LEARN MORE on NerdWallet | Regional | 89.90 | 620 | LEARN MORE on NerdWallet | |
 PenFed: NMLS#401822 LEARN MORE on NerdWallet | National | 85% | 680 | LEARN MORE on NerdWallet | |
 Truist: NMLS#399803 LEARN MORE on NerdWallet | National | 89% | 660 | LEARN MORE on NerdWallet | |
 PNC Bank: NMLS#446303 LEARN MORE on NerdWallet | National | 89.90% | 600 | LEARN MORE on NerdWallet | |
 Bank of America: NMLS#399802 LEARN MORE on NerdWallet | National | 85% | 660 | LEARN MORE on NerdWallet | |
 Golden 1 Credit Union: NMLS#669333 LEARN MORE on NerdWallet | Regional | 80% | N/A | LEARN MORE on NerdWallet | |
 Citizens Bank: NMLS#433960 LEARN MORE on NerdWallet | National | 80% | N/A | LEARN MORE on NerdWallet |
Explore all of our lender picks by category
FourLeaf Federal Credit Union: NMLS#449104
National
85%
670
- Why We Like ItFourLeaf HELOC borrowers don’t pay closing costs (as long as the line is open for more than three years) and can get an introductory rate below the prime rate.Pros
- No closing costs
- Easy-to-join credit union.
- Fixed introductory rate is below the prime rate.
Cons- Must pay back closing costs if the line is open for three years or less.
Figure: NMLS#1717824
85%
640
National
- Why We Like ItFigure is a large HELOC lender and stands out for offering funding in as fast as five days. However, borrowers have to draw their full line amount at closing, and will pay an origination fee.Pros
- Specializes in HELOCs.
- The initial balance and any additional draws have a fixed interest rate.
- Closing may be available in just five days.
- HELOCs are available for second homes.
Cons- Short draw period of two to five years.
- Requires a $15,000 minimum initial draw.
- Lender charges origination fees up to 4.99%.
- Why We Like ItRate’s HELOC is unique for having a fixed (rather than variable) interest rate and a short draw period. Additionally, the full loan amount (minus the origination fee) must be drawn at closing.Pros
- Closing may be available within five to 10 days of applying.
- The initial balance and any additional draws have a fixed interest rate.
- Offers paths for rate discounts.
Cons- No information about annual fees.
- Full amount (minus origination fee) must be drawn at closing.
- Short draw period of 2-5 years, compared with industry standard of 10 years.
State Employees' Credit Union: NMLS#430055
Regional
90%
600
- Why We Like ItState Employees' Credit Union may be a strong match for qualified North Carolina borrowers who want a long window to access their equity.Pros
- Long draw period of 15 years.
- Introductory rate is below the prime rate.
- Second homes are eligible for HELOCs.
Cons- Credit union membership is limited by restrictive requirements.
U.S. Bank: NMLS#402761
National
90%
660
- Why We Like ItU.S. Bank’s HELOC offers a rate discount and an option to convert to a fixed rate. It has a generous maximum draw, but the lender charges an annual fee and early repayment penalty.Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
- High maximum loan amount compared with other lenders.
Cons- Charges a fee for early repayment.
- Annual fee up to $75 (waived for certain banking customers).
- Why We Like ItNavy Federal’s HELOC stands out for its long draw period of 20 years and lack of fees, but qualifications to join the credit union are narrow.Pros
- Unusually long draw period of 20 years.
- Borrowing limit of up to 95% CLTV is among the highest of lenders we review.
- No application, origination, or annual fees.
Cons- Potential borrowers must qualify for credit union membership.
- Only one repayment term option, which is 20 years.
TD Bank: NMLS#399800
Regional
89.90
620
- Why We Like ItTD Bank stands out for being one of the largest HELOC lenders in the country by origination volume. Borrowers have the option to lock their interest rate on a balance, and rate quotes are customizable online.Pros
- Maximum borrowing limit is 89.99%, higher than the industry standard of 80%.
- Rate discount for borrowers with a TD Bank checking account.
- No minimum draw requirement.
Cons- Borrowers pay a $99 origination fee and a $50 annual fee.
- Borrowers can apply online but must close in person.
- Best rates are reserved for lines of credit starting at $200,000.
PenFed: NMLS#401822
National
85%
680
- Why We Like ItPenFed Credit Union stands out for having a low introductory rate and a fast closing, but borrowers will have to pay a $99 annual fee.Pros
- Some borrowers may be able to close in as little as 15 days.
- Advertised introductory rate is below the current prime rate.
- Application is available online and via mobile app.
- No origination or transaction fees.
Cons- Annual fee of $99.
- Credit score requirements are on the higher side among lenders we review.
- Credit union membership is required to finish the application.
Truist: NMLS#399803
660
89%
National
- Why We Like ItTruist is a large HELOC lender, with a generous borrowing limit, the option to fix the rate on all or part of the loan balance, and no origination fees.Pros
- Choice of 5, 10, 15, 20 or 30-year repayment terms for borrowers with fixed rates.
- No initial draw required.
- No origination fees or prepayment penalties.
Cons- $50 annual fee.
- Rates are not posted online.
- Fixed-rate draws must be at least $5,000.
PNC Bank: NMLS#446303
National
89.90%
600
- Why We Like ItPNC Bank is a large HELOC lender with a higher-than-average borrowing limit, a wide range of repayment terms and no initial draw requirements.Pros
- Max borrowing limit is higher than average.
- Minimum credit score requirement is lower than most competitors.
- Repayment period up to 30 years.
- Among the largest HELOC lenders by origination volume.
Cons- Annual fee of $50.
- Borrowers in California, North Carolina and New York will pay an origination fee.
Bank of America: NMLS#399802
National
85%
660
- Why We Like ItBank of America’s HELOC stands out for offering multiple types of rate discounts, especially for current Bank of America customers, and a fixed-rate option that can help keep payments predictable.Pros
- Charges no annual fee, application fee or closing costs.
- Publishes sample HELOC rates online.
- Offers multiple discounts, including autopay discount when using a Bank of America account.
Cons- Maximum CLTV is 85%, which is on the low side for HELOC lenders reviewed by NerdWallet.
- Charges an early account closure fee under some circumstances.
Golden 1 Credit Union: NMLS#669333
Regional
80%
N/A
- Why We Like ItGolden 1 Credit Union can be a good choice for borrowers in California seeking a line of credit with no annual fees.Pros
- Offers a fixed-rate option.
- No closing costs or annual fees.
Cons- Credit union membership is limited to California borrowers.
Citizens Bank: NMLS#433960
National
80%
N/A
- Why We Like ItCitizens Bank is one of the largest HELOC lenders in the nation by volume, and offers a specialized HELOC product for borrowers who make less than the median income in their area.Pros
- Among the top HELOC lenders in the country by volume.
- Full application is available online.
- Closing may be available within seven days.
Cons- No fixed-rate option.
- Annual fee of $50 after the first year.
- Repayment period is 15 years, when 20 is standard.
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.
More from NerdWallet
Last updated on March 3, 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
