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Prosper: 2022 Home Equity Review

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Founded in 2005 and based in San Francisco, Prosper was the first peer-to-peer lender in the United States. Over the years, it has helped over

Prosper launched its home equity line of credit (HELOC) product in 2019. So far, HELOCs are available through Prosper in Alabama, Arizona, California, Colorado, Florida, Illinois, Nebraska, New Hampshire, New Mexico, Oklahoma, Oregon, Pennsylvania and Texas.

The online application process with Prosper is easy. Potential borrowers get a personalized instant offer, including interest rate and credit limit, within minutes. Funds are delivered within just a few weeks. For those who would like to find out quickly what rates they may qualify for, Prosper can be a good choice.

Prosper snapshot

Loan types offered HELOC
APR range Starting at 3.99% (with autopay)
Loan amount range Up to $500,000
Minimum credit score required 640
Repayment terms 1- to 10-year draw period and 20-year repayment period
Average time to approval Same day


There’s a lot to like about Prosper and its product. Here are some things to be aware of before applying:

  • Instant rates: With Prosper’s online application, you’ll instantly get a personalized rate quote after answering a few basic questions — desired loan amount, current income and location — without it affecting your credit score.
  • No prepayment penalty: If you’re able to pay off your HELOC early, you won’t get stuck with a penalty fee.
  • Quick funding: After filling out the online application, most customers receive funds via direct deposit in just a few weeks.


While there are many benefits to Prosper, there are also some drawbacks. Here are a few:

  • Variable interest rate: HELOCs through Prosper come with a variable interest rate, meaning the interest you pay can increase or decrease. When the interest rate increases, less of your monthly minimum payment due will go toward repaying the balance owed.
  • Appraisal and insurance required for some HELOCs: Those seeking to borrow more than $250,000 will be required to undergo an in-home appraisal and must have title insurance.
  • Limited availability: Prosper’s HELOC is currently available only in Alabama, Arizona, California, Colorado, Florida, Illinois, Nebraska, New Hampshire, New Mexico, Oklahoma, Oregon, Pennsylvania and Texas.

Types of fees charged

There are no application or origination fees on Prosper’s HELOC. During the application and closing process, you’re responsible only for the cost of an additional appraisal on your home if necessary.

Loan products offered

Prosper’s HELOC is only available in a limited number of states: Alabama, Arizona, California, Colorado, Florida, Illinois, Nebraska, New Hampshire, New Mexico, Oklahoma, Oregon, Pennsylvania and Texas.
The amount you can borrow varies by state, but you won’t be able to borrow any more than 97.5 percent of your home’s value. In Texas, HELOC borrowing is limited to 80 percent of home value.

Prosper’s APR on HELOCs is variable and will be based on the prime rate plus a margin. Current APRs start at 5.25 percent. During the term of the HELOC, the APR applied to your loan will fluctuate but will never go below 4 percent or higher than 18 percent.
During the HELOC’s draw period, you are required to make minimum monthly payments equal to the greater of either $100 or the total of all accrued finance charges and any other charges that were accumulated during each monthly billing cycle.
There is a 10-year draw period on Prosper HELOCs and a 20-year repayment period.

How to qualify for a home equity loan with Prosper

Prosper doesn’t outline any specific borrower requirements for HELOCs on its website, but most of its customers have a minimum credit score of 640. Since it doesn’t pull a hard credit inquiry when you fill out the initial application, you can apply and see your rate instantly without it negatively affecting your credit score.

View home equity rates

Tap into the value you have in your home to get the funds you need.

How to get started

To apply for Prosper’s HELOC, you need to fill out an online application. The initial application asks for information about how much you want to borrow, your income and your location. Within minutes, you’ll have a personalized interest rate offer; this initial application does not affect your credit score. If you want to proceed, you’ll move on to the next part of the application. Most borrowers receive their funds via direct deposit in just a few weeks.

Those with questions can call 800-954-2172.

How Bankrate rates Prosper

Bankrate Score 3.8 Scoring factors
Availability 3.9 Quick, instant offer and loans funded within 11 days
Affordability 3.1 Slightlier higher APR and some fees
Customer experience 4.5 No app but online access, autopayments and customer support Mon-Fri

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Aylea Wilkins
Loans Editor, Former Insurance Editor
Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.