Prosper: 2025 Home Equity Review

Affordability: 1.6/5

• APR: While Prosper advertises appealing rates on its site, its APRs vary tremendously, depending on borrower creditworthiness, and overall they skew higher than Bankrate’s national average. Additionally, Prosper doesn’t offer any introductory rates for HELOCs.
• Fees: Although no-closing-cost options are available, on Prosper’s HELOC, the total costs, origination fees or charges for items like appraisals can range from $1,712 to $8,902; a home equity loan might come with a $1,495 charge depending on the state you live in. Prosper also charges a $50 annual fee on HELOCs after the first year during the draw period.

Because Prosper’s rates are relatively high for borrowers who don’t have excellent credit, we gave it a 1.6 out of 5 for affordability. 

Availability: 4.5/5

• Loan products: Prosper offers both HELOCs and home equity loans.
• Footprint: Prosper’s footprint covers a wide chunk of the country, including 30 states and Washington, D.C. 
• Credit score: The company accepts credit scores as low as 640 for both types of home equity products–lower than other lenders’ minimums.
• Loan minimum: For home equity loans, you’ll need to borrow at least $40,000, while HELOCs have a minimum of $17,500. These minimums are on the high side for HE Loans, about the standard for HELOCs. 
• Draw requirement: At opening, Prosper requires borrowers with HELOCs to draw at least $50,000 or 50 percent of the line. That’s not unusual, though a tad high.

Because Prosper is licensed to lend in more than half the country and it accepts credit scores as low as 640, the company scores a 4.5 out of 5 for availability.

Borrower experience: 3.8/5

• Rate transparency: Like many lenders, Prosper displays APRs “as low as” on its site and indicates ceilings for HELOC rates in fine print. But you have to submit an online form for a more customized rate.
• Convenience: Prosper is an online company. Its digital tool allows you to get a personalized rate estimate easily, with no ding to your credit score. You can also call a representative. If you decide to move forward and apply, you might get funds in as quickly as 11 days (HELOCs). 
• Customer service: The company offers phone-based customer support from Monday through Friday between 7 a.m. and 4 p.m. PT. Call 800-954-2172 for assistance. 
• Fixed-rate options: While some lenders allow HELOC borrowers to convert a portion of variable-rate debt to a fixed-rate option, Prosper does not allow such lock-ins on its lines of credit.

We gave Prosper a 3.8 out of 5 for its borrower experience, reflecting its lack of physical branches and lock-in features, along with limited customer support hours.

Prosper requires a minimum 640 credit score for home equity loans and HELOCs. Properties can be primary residences, secondary residences, or investment properties for loans; first or vacation homes for HELOCs. Borrowers should have homeowners insurance and flood insurance, if applicable.

Those seeking to borrow more than $250,000 may need to incur the cost of an in-home appraisal and obtain title insurance.

To apply for a Prosper home equity product, you’ll 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. If you have questions about a line of credit or loan, you can call 800-954-2172 first, or at any time.

Prosper receives rave reviews on Trustpilot: Based on more than 13,000 reviews, the company has a 4.6 out of 5 rating with many customers commenting on the speed and ease of the application process. However, the company has a significantly worse profile with the Better Business Bureau, which has closed more than 500 complaints about Prosper in the past three years.