Published January 10, 2023
You deserve the best in home equity
From credit score requirements and APRs to repayment terms and fast funding, there are many factors to consider when choosing a home equity loan or HELOC lender. Bankrate is here to help. We rigorously and objectively evaluated over 35 home equity lenders to find the best across several categories. The following winners provide the best value for their particular category and can help you take advantage of your home’s equity on your terms.
Here are the winners of the 2023 Bankrate Awards for Best Home Equity Lenders.
How we picked these lenders
- Bankrate gave the most weight to low APRs and best overall scores.
- We used factors such as fastest funding, minimum credit scores and long repayment terms.
- We evaluated overall availability, affordability and borrower experience.
Best for borrowers with fair credit
Highlights No fees or upfront closing costs Up to 90% combined LTV ratio Competitive APRs
Discover offers home equity loans to borrowers with credit scores as low as 620. Notably, the lender doesn’t charge upfront costs — no fees for application, origination or appraisal, and no cash at closing.
- No fees or upfront closing costs
- Up to 90 percent combined LTV ratio
- Competitive APRs
Best for borrowers with good credit
Highlights HELOCs and loans up to $1 million No closing costs No prepayment penalties
Flagstar Bank’s home equity products are available in most states to borrowers with a credit score as low as 680.
- HELOCs and loans up to $1 million
- No closing costs
- No prepayment penalties
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Best for borrowers with excellent credit
BMO Harris Bank
Highlights No application fees Low or no closing costs Fixed-rate HELOC option
For borrowers with credit scores 700 or higher, BMO Harris Bank offers HELOCs and home equity lines in amounts of $25,000 to $150,000, with a fixed-rate line of credit conversion option.
- No application fees
- Low or no closing costs
- Fixed-rate HELOC option
Best for home improvement
Connexus Credit Union
Highlights Up to 90% combined LTV ratio Online application process Dedicated loan officer for personalized service
For home improvement projects, Wisconsin-based Connexus Credit Union can issue an approval as little as 24 hours after you apply for a HELOC or home equity loan, and offers relatively longer repayment terms on both.
- Up to 90 percent combined LTV ratio
- Fully-online application process
- Dedicated loan officer for personalized service
Best for debt consolidation
Highlights Approvals in minutes Funding in five days Up to 30-year repayment terms
Figure’s blockchain and artificial intelligence capabilities offer an entirely digital application and funding process with no appraisal required, nor annual or late fees. The lender extends lines of credit up to $400,000, issuing approvals in as quickly as five minutes and delivering funds in as little as five days.
- Approvals in minutes
- Funding in five days
- Up to 30-year repayment terms
Best online lender
Highlights Offers both fixed-rate loans and HELOCs Loans up to $500,000 Lower credit score minimum on loans
Spring EQ’s online platform translates to fast approval and funding times. On average, borrowers receive funds in 18 days. This lender operates in most states.
- Streamlined online platform
- Instant loan qualification
- Funding in as little as 11 days
Best from a bank
Highlights Two HELOC options No application fee or closing costs Large network of 1,200 branches
This old-line bank collects no closing costs or application fees on HELOCs, nor an annual fee (normally $50) for the first year. Citizens also offers payment flexibility: During the 10-year draw period, you can choose to make interest-only payments or payments that include principal and interest.
- Two HELOC options
- No application fee or closing costs
- Large network of 1,200 branches
Best innovative home equity product
Highlights Apply easily online with bank verification Rapid funding times Experienced mortgage player
Guaranteed Rate’s new fixed-rate HELOC means you’ll know how much your interest rate and payments will be, unlike most other HELOCs that come with variable rates. If permitted in your state, you can close your line of credit remotely and get the funds in as little as five days.
- Apply easily online with bank verification
- Rapid funding times
- Experienced mortgage player