Key Takeaways
- Average HELOC rate: 7.25% (January 2026) – lowest in over two years
- Best for fast funding: Figure (approval in 5 minutes, funding in 5 days)
- Best for low rates: FourLeaf Federal Credit Union (5.99% intro rate for 12 months)
- Best for high loan amounts: Truist and Navy Federal (up to $1 million+)
- Best for low credit: PNC Bank (accepts scores as low as 600)
- Alternative for no monthly payments: Hometap, Unlock (home equity investments)
- Most lenders require 680+ credit score and 15-20% equity to qualify
Table of Contents
- Best HELOC Lenders at a Glance
- Compare HELOC Rates From Multiple Lenders
- Figure: Best for Fast Funding
- FourLeaf Federal Credit Union: Best for Low Intro Rates
- Rocket Mortgage: Best for Easy Online Experience
- Navy Federal: Best for Military Families
- PNC Bank: Best for Lower Credit Scores
- Truist: Best for Large Loan Amounts
- Home Equity Alternatives: No Monthly Payments
- How to Choose the Right HELOC Lender
- How We Chose These Lenders
- Frequently Asked Questions
Best HELOC Lenders at a Glance
After analyzing dozens of HELOC lenders, these stand out for different borrower needs in 2026:
Figure – Best for Fast Funding
APR range: 6.65% – 14.60%. Max loan: $750,000. Min. credit score: 640. Best feature: 5-minute approval, funding in as few as 5 days.
FourLeaf Federal Credit Union – Best for Low Intro Rates
APR range: 5.99% intro (12 months), then 6.75%+. Max loan: $1,000,000. Min. credit score: 680. Best feature: No closing costs up to $500K, fixed-rate conversion option.
Rocket Mortgage – Best for Easy Online Experience
APR range: Not publicly posted. Max loan: $500,000. Min. credit score: 680. Best feature: Streamlined digital application, strong customer service.
Navy Federal Credit Union – Best for Military Families
APR range: Competitive (members only). Max loan: $1,000,000+. Min. credit score: Not disclosed. Best feature: 95% LTV, 20-year draw period, no closing costs.
PNC Bank – Best for Lower Credit Scores
APR range: Variable. Max loan: $1,000,000. Min. credit score: 600. Best feature: Accepts lower credit scores than most competitors.
Truist – Best for Large Loan Amounts
APR range: Competitive variable. Max loan: $1,000,000+. Min. credit score: Not disclosed. Best feature: High borrowing limits, 30-year repayment option.
Compare HELOC Rates From Multiple Lenders
The best way to find a competitive HELOC rate is to compare offers from multiple lenders. Rates can vary by 1-2 percentage points or more for the same borrower profile, which translates to hundreds of dollars per year in interest.
Use the tool below to compare current rates based on your specific situation:
When comparing offers, look beyond just the interest rate. Pay attention to closing costs and fees (some lenders charge $0), annual fees, minimum draw requirements, early termination fees, and whether a fixed-rate conversion option is available.
Figure: Best for Fast Funding
APR range: 6.65% – 14.60%
Max loan amount: $750,000
Min. credit score: 640 (720+ for best rates)
Max LTV: 85%
Draw period: 5 years
Availability: All states except Hawaii
Why We Like Figure
Figure has revolutionized the HELOC process with its entirely digital platform. According to NerdWallet’s analysis, Figure is one of the top HELOC lenders in the nation by loan volume, largely due to its speed and convenience.
The main appeal is funding speed. You can complete the application online in minutes, get approved in as little as 5 minutes, and receive funds in as few as 5 days. Most traditional lenders take 3-6 weeks.
Figure doesn’t charge closing costs in most states, and there’s no annual fee. They also offer a rate discount for setting up automatic payments.
Things to Consider
Figure’s HELOC works differently than traditional HELOCs. It has a fixed rate (not variable), and you must draw 100% of your credit line at closing. This makes it function more like a home equity loan despite being called a HELOC.
The 5-year draw period is also shorter than the industry standard of 10 years. If you want flexibility to borrow and repay over time, a traditional HELOC may be better.
Best for: Borrowers who know exactly how much they need, want fast funding, and prefer fixed-rate predictability.
FourLeaf Federal Credit Union: Best for Low Intro Rates
APR range: 5.99% intro for 12 months, then 6.75%+ variable
Max loan amount: $1,000,000
Min. credit score: 680
Max LTV: 80%
Draw period: 10 years
Availability: Nationwide (membership required)
Why We Like FourLeaf
FourLeaf (formerly Bethpage Federal Credit Union) offers one of the most competitive intro rates in the market – 5.99% APR for the first 12 months on lines up to $500,000. After the intro period, rates convert to a competitive variable rate starting at 6.75% (prime + margin).
The credit union doesn’t charge closing costs for HELOCs up to $500,000, which can save you $2,000-$5,000 compared to lenders who do charge fees. There’s also no annual fee.
FourLeaf offers a fixed-rate conversion option, allowing you to lock in a fixed rate on all or part of your balance (minimum $10,000). This provides protection against rising rates.
Things to Consider
You must become a credit union member to apply, though membership is easy to obtain with a $5 minimum savings account. FourLeaf’s closing process is slower than digital-first lenders like Figure – expect 30-45 days.
If you close your HELOC within 36 months, you’ll need to repay the closing costs FourLeaf covered.
Best for: Borrowers who want the lowest possible rate for the first year and appreciate the fixed-rate conversion option.
Rocket Mortgage: Best for Easy Online Experience
APR range: Not publicly posted (get personalized quote)
Max loan amount: $500,000
Min. credit score: 680 (740 for 90% LTV)
Max LTV: 90% (with 740+ credit)
Loan terms: 10 or 20 years
Availability: Most states (some restrictions)
Why We Like Rocket
Rocket Mortgage consistently ranks as a top mortgage lender thanks to its user-friendly digital platform and strong customer service. According to Money’s analysis, Rocket offers “an easy online application process, multiple loan options and high customer satisfaction ratings.”
The 10-minute online application is straightforward, and Rocket provides educational resources and a home equity calculator to help you understand your options before applying.
Rocket allows up to 90% LTV for well-qualified borrowers (740+ credit score), which is higher than many competitors who cap at 80-85%.
Things to Consider
Rocket offers home equity loans rather than traditional HELOCs, meaning you get a lump sum with fixed payments rather than a revolving line of credit. This is great for predictability but less flexible than a HELOC.
The credit score requirements are relatively high. You need at least 680 to qualify, 700 for 85% LTV, and 740 for 90% LTV. Rocket also doesn’t post sample rates online, so you won’t know your rate until you apply.
Best for: Borrowers who want a trusted brand, excellent customer service, and prefer fixed-rate home equity loans over variable-rate HELOCs.
Navy Federal Credit Union: Best for Military Families
APR range: Competitive (members only)
Max loan amount: $1,000,000+
Min. credit score: Not publicly disclosed
Max LTV: 95%
Draw period: 20 years
Availability: All states except Texas (for HELOCs)
Why We Like Navy Federal
For eligible military members, veterans, and their families, Navy Federal offers arguably the best HELOC terms in the industry. According to CNBC Select, Navy Federal stands out for its 95% LTV – one of the highest in the market – and its exceptional 20-year draw period (twice the industry standard).
Navy Federal charges no closing costs on HELOCs, and the credit union has a reputation for competitive rates and excellent member service.
The extended draw period is particularly valuable because it gives you two decades to borrow and repay as needed, rather than the typical 10 years before entering the repayment phase.
Things to Consider
Membership is limited to active duty military, veterans, Department of Defense employees, and their immediate family members. If you’re not affiliated with the military, Navy Federal isn’t an option.
HELOCs are not available for properties in Texas due to state-specific regulations.
Best for: Military families who want maximum flexibility, high LTV options, and no closing costs.
PNC Bank: Best for Lower Credit Scores
APR range: Variable (based on creditworthiness)
Max loan amount: $1,000,000
Min. credit score: 600
Max LTV: 80%
Draw period: 10 years
Repayment period: 20 years
Availability: 44 states
Why We Like PNC
PNC stands out by accepting credit scores as low as 600, making it accessible to borrowers who might not qualify elsewhere. Most HELOC lenders require 620-680 minimum scores, so PNC opens doors for those with credit challenges.
The bank offers high borrowing limits (up to $1 million) and a 20-year repayment period after the draw phase ends, allowing for manageable monthly payments.
PNC also offers a fixed-rate conversion option, letting you lock portions of your balance at a fixed rate if you’re concerned about variable rate increases.
Things to Consider
While PNC accepts lower credit scores, you’ll pay a higher rate than borrowers with excellent credit. According to CNBC, the difference can be 1-2 percentage points or more.
PNC is primarily an East Coast bank, though HELOCs are available in 44 states. Verify availability in your area before applying.
Best for: Borrowers with credit scores between 600-679 who can’t qualify with other lenders.
Truist: Best for Large Loan Amounts
APR range: Competitive variable
Max loan amount: $1,000,000+
Min. credit score: Not publicly disclosed
Max LTV: 85%
Draw period: 10 years
Repayment period: Up to 30 years
Availability: Nationwide (nearly 2,000 branches)
Why We Like Truist
For homeowners with substantial equity who need to borrow more than $500,000, Truist is a compelling option. According to Fortune, Truist allows borrowing amounts exceeding $1 million – a rarity among major lenders.
The 30-year repayment option (after the 10-year draw period) is the longest we’ve seen, providing maximum flexibility to spread payments over time if needed.
Truist has nearly 2,000 branches nationwide, making it a good option for borrowers who prefer in-person banking alongside digital access.
Things to Consider
Truist doesn’t prominently advertise its rates online, so you’ll need to contact them directly or apply to get a quote. The focus on high-net-worth borrowers may mean less flexibility for those with smaller equity positions.
Best for: High-equity homeowners who need to borrow $500,000+ and want the security of a large, established bank.
Home Equity Alternatives: No Monthly Payments
Traditional HELOCs aren’t the only way to access your home equity. If you don’t want monthly payments or can’t qualify for a HELOC, home equity investments (also called home equity sharing agreements) offer an alternative approach.
How Home Equity Investments Work
Instead of borrowing money and paying interest, you sell a portion of your home’s future appreciation to an investment company in exchange for a lump sum today. There are no monthly payments during the term (typically 10-30 years). When you sell your home, refinance, or the term ends, you pay back the company’s share based on your home’s value at that time.
Pros: No monthly payments, no interest charges, easier qualification (credit scores as low as 600), no income verification in some cases.
Cons: You give up a portion of future home appreciation, can be more expensive than a HELOC if your home value increases significantly, limited geographic availability.
Hometap: Best for Maximum Funding
Investment amount: Up to $600,000
Min. credit score: 600
Term: 10 years
Availability: 16 states (AZ, CA, FL, MI, MN, NJ, NY, NV, SC, OH, OR, PA, VA, UT, WA, plus DC)
Hometap is the largest home equity investment company, offering up to $600,000 – the highest in the industry. According to LendEDU, Hometap has an excellent 4.8/5 rating on Trustpilot from over 5,600 customers.
The company accepts credit scores as low as 600, making it accessible to borrowers who can’t qualify for traditional HELOCs. There are no monthly payments, and you can settle the investment anytime within the 10-year term.
How repayment works: Hometap receives 15-20% of your home’s value at settlement, depending on how long you hold the investment and whether your home appreciated or depreciated. If your home value drops, you pay less (15%). If it appreciates significantly, Hometap’s share increases, capped at a 20% annualized return.
Best for: Homeowners who can’t qualify for traditional financing, don’t want monthly payments, or need funds without taking on debt.
Unlock: Best for Flexible Property Types
Investment amount: Up to $500,000
Min. credit score: Varies (generally 500+)
Term: 10 years
Availability: Select states
Unlock accepts a wide range of property types including single-family homes, multi-unit properties, townhomes, second homes, and rental properties. This makes it a good option for real estate investors looking to tap equity in investment properties.
According to Money, Unlock offers partial buyout payments, allowing you to pay back portions of the investment over time rather than requiring one lump sum at the end.
Best for: Real estate investors and homeowners with rental or second properties.
Should You Choose a Home Equity Investment Over a HELOC?
Consider a home equity investment if:
- Your credit score is below 620 and you can’t qualify for a HELOC
- You’re on a fixed income and can’t add monthly payments
- You plan to sell your home within 5-10 years
- You don’t expect significant home appreciation
Stick with a traditional HELOC if:
- You qualify for competitive HELOC rates
- You can comfortably afford monthly payments
- You expect your home to appreciate significantly
- You want to retain all your future equity
For most homeowners who qualify, a HELOC at 7-8% will cost less over time than giving up 15-20% of future home value. But for those who can’t qualify or truly can’t handle monthly payments, home equity investments provide a valuable alternative.
How to Choose the Right HELOC Lender
With so many options, finding the right HELOC lender comes down to matching your priorities with what each lender does best.
Consider Your Timeline
Need funds fast? Figure can fund in as little as 5 days. Most traditional lenders take 3-6 weeks.
Can wait for a better rate? Credit unions like FourLeaf and Navy Federal offer competitive rates but slower processing.
Evaluate Your Credit Profile
Excellent credit (740+): You’ll qualify with any lender and get the best rates. Shop aggressively for the lowest rate.
Good credit (680-739): Most lenders will approve you. Compare rates carefully as they’ll vary more at this level.
Fair credit (620-679): Options are limited. PNC (600 minimum) and some credit unions may work.
Poor credit (below 620): Traditional HELOCs are unlikely. Consider home equity investments like Hometap (600 minimum) or Unlock.
Know How Much You Need
Under $100,000: Any lender can accommodate this. Focus on rates and fees.
$100,000 – $500,000: Most lenders work well in this range. Compare carefully.
Over $500,000: Look at Truist, Navy Federal, or FourLeaf for high borrowing limits.
Decide on Rate Preference
Want a fixed rate? Figure offers fixed-rate HELOCs. FourLeaf and PNC offer fixed-rate conversion options.
Comfortable with variable rates? You’ll have more options and potentially lower starting rates.
Factor in Fees
Zero closing cost options: Figure, FourLeaf (up to $500K), Navy Federal
No annual fees: Figure, FourLeaf
Early termination fees: Check each lender – typically 2-3 year clawback periods
How We Chose These Lenders
We evaluated HELOC lenders based on several key criteria:
Interest rates: We compared advertised rates, intro offers, and how rates vary by credit score and LTV.
Fees and costs: We prioritized lenders with no or low closing costs, no annual fees, and no prepayment penalties.
Loan terms: We evaluated maximum loan amounts, LTV limits, draw periods, and repayment terms.
Accessibility: We considered minimum credit score requirements, geographic availability, and membership requirements.
Customer experience: We reviewed application processes, funding speed, and customer service ratings.
Flexibility: We looked for fixed-rate conversion options, flexible draw options, and various repayment choices.
Our selections represent a range of options for different borrower profiles, from those with excellent credit seeking the lowest rates to those with credit challenges who need alternative solutions.
Frequently Asked Questions
Most HELOC lenders require a minimum credit score of 620-680. PNC Bank stands out by accepting scores as low as 600. For the best rates (around 7% or lower), you’ll typically need a score of 740 or higher. If your credit score is below 620, traditional HELOCs may not be available, but home equity investments from companies like Hometap accept scores as low as 600 with no monthly payments required.
As of January 2026, FourLeaf Federal Credit Union offers one of the lowest introductory rates at 5.99% APR for the first 12 months. After the intro period, rates are competitive starting at 6.75%. The national average HELOC rate is 7.25%, so any rate below that is considered good. Your actual rate will depend on your credit score, LTV ratio, and the lender’s current pricing.
The timeline varies significantly by lender. Figure offers the fastest process with approval in as little as 5 minutes and funding in 5 days. Traditional banks and credit unions typically take 3-6 weeks from application to funding. This includes application review, appraisal (if required), underwriting, and closing. Having your documentation ready can speed up the process with any lender.
Yes, several lenders offer HELOCs with no closing costs. Figure, FourLeaf (for lines up to $500,000), and Navy Federal Credit Union all waive closing costs. However, some lenders require you to keep the HELOC open for 2-3 years or repay the waived costs if you close early. Always check for early termination fees when a lender advertises “no closing costs.”
A HELOC is a revolving line of credit with variable rates that lets you borrow as needed up to your limit, pay it back, and borrow again. A home equity loan provides a lump sum upfront with a fixed rate and fixed monthly payments. Rocket Mortgage and some other lenders offer home equity loans but call them HELOCs, so read the terms carefully. Choose a HELOC for flexibility; choose a home equity loan for predictable payments.
The amount depends on your home equity and the lender’s maximum loan-to-value (LTV) ratio. Most lenders allow borrowing up to 80-85% of your home’s value minus your mortgage balance. Some, like Navy Federal (95% LTV) and Better (90% LTV), allow higher borrowing limits. For example, if your home is worth $400,000 and you owe $250,000, with an 80% LTV you could borrow up to $70,000 ($400,000 × 0.80 – $250,000).
Most HELOCs have variable rates tied to the prime rate (currently 6.75%). When the Federal Reserve raises or lowers rates, your HELOC rate adjusts accordingly. However, some lenders offer fixed-rate options: Figure offers fixed-rate HELOCs, while FourLeaf and PNC allow you to convert all or part of your balance to a fixed rate. Fixed rates provide payment stability but are usually slightly higher than starting variable rates.
If you can’t qualify for a traditional HELOC due to credit issues, consider home equity investments from Hometap or Unlock. These aren’t loans – you receive cash in exchange for a share of your home’s future value, with no monthly payments required. Credit requirements are lower (Hometap accepts 600+ scores). Other alternatives include personal loans (no home equity required but higher rates), cash-out refinancing (replaces your mortgage), or waiting to improve your credit before applying for a HELOC.
January 2026 is a favorable time for HELOCs. Rates have dropped to around 7.25% – the lowest in over two years – following three Federal Reserve rate cuts in late 2025. American homeowners collectively hold record levels of tappable equity ($11.5 trillion). If you have a low-rate primary mortgage from 2020-2021, a HELOC lets you access equity without disturbing that favorable rate. However, if rates continue dropping, you might get an even better deal later in 2026.
Yes, you can use HELOC funds for virtually any purpose, including a down payment on a second home, investment property, or rental. However, be aware that you’re putting your primary residence at risk since it serves as collateral. If the investment property doesn’t perform well and you can’t make HELOC payments, you could lose your home. Make sure the numbers work and you have adequate reserves before using home equity for real estate investments.
Choosing the right HELOC lender depends on your specific needs – whether that’s speed, low rates, flexible terms, or accessibility despite credit challenges. Take time to compare offers from at least 3-5 lenders before deciding.
Ready to compare your options? Use the rate comparison tool above, or learn more about how HELOCs work in our complete HELOC guide.