Buying guide for best home equity loans
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Big expenses have a way of piling up, whether you’re doing a kitchen remodel, paying your child’s college tuition bill or paying off high-interest debt. You may already have the cash you need to cover them as a homeowner. According to the August 2026 ICE Mortgage Monitor report, homeowners with mortgages had about $18 trillion in home equity and around $12 trillion of that could be available to tap into using home equity loans.
A home equity loan allows you to tap into your home equity, giving you a lump sum you pay back in installments. With a home equity line of credit (HELOC), you’ll be approved up to a certain limit, much like how a credit card works.
One of the main benefits of these loans is that they tend to have lower interest rates compared to personal loans or credit cards. Plus, you may be able to borrow more, and use the funds for almost any purpose. Remember that your home is the collateral for the loan, so borrow only what you can reasonably pay back.
Editors’ picks
Figure Lending
Editors' Favorite
Minimum Credit Score : 640 | Starting APR : 7.35% | Loan Amount Max: $750,000
Figure is an online lender that specializes in HELOCs. The lender offers HELOCs with fixed interest rates, unlike most lines of credit, so you can better budget for payments since your payment won't go up when rates do. You can go through the entire application process online and choose from different repayment term lengths of five, 10, 15 or 30 years.
Although the minimum score is a little bit higher at 640, this might still be within reach for many homeowners. Figure usually skips an in-person appraisal and uses an automated valuation model, which keeps your application moving and may spare you the cost of more traditional appraisal methods. Also, you may get your funds faster as Figure often gives you loan proceeds in as little as five days.
Figure may be the better pick if you don't need to borrow a high amount and you want to get funding faster. Unfortunately, this lender isn't available in every state so check with the website to see if it's available in your area.
M&T Bank
Low Interest, Large Loan
Minimum Credit Score : 680 | Starting APR : 5.24% | Loan Amount Max: $1 million
M&T Bank has one of the most competitive HELOC rates, starting at 5.24% APR for the first months, then the variable rate goes up to as low as 5.94% APR. Applicants won't pay any application, closing or annual fees and it can help keep upfront costs down, especially on larger HELOCs. If you qualify, you make interest-only payments during the 10-year draw period, followed by a 20-year repayment period.
Although M&T isn't available in all 50 states, if it's available in yours, you may be able to qualify for one of three fixed-rate options. Vacation and manufactured homes can qualify, borrowing limits may be lower on these types of properties.
PNC Bank
Most Comprehensive
Minimum Credit Score: 600+ | Starting APR: 7.52% | Loan Amount Max: $1 million
PNC Bank offers both home equity loans and HELOCs, so you can choose between the one that best suits your needs. You can also choose between fixed and variable rate options. Fixed-rate terms range from five to 30 years, with interest-only payment options for the first five years.
PNC Bank accepts applications from borrowers for credit with credit scores starting just above 600, which is the lowest minimum of any lender on our list. That makes it a strong option if your credit score isn't as great. Up to $1 million and up to almost 90% of your home's value, depending on your financial profile
This bank is the best place to start if you want the most choice when it comes to rates and repayment terms. An in-person appraisal is required and, unfortunately, the bank doesn't lend in all 50 states.
Connexus Credit Union
No Appraisal Needed
Minimum Credit Score : 640 | Starting APR : 7.30% | Loan Amount Max: Not disclosed
The Connexus Credit Union offers both home equity loans and HELOCs and doesn't require an in-person appraisal. Standard HELOC comes with a 15-year draw period and a 15-year repayment period, which gives you plenty of runway to withdraw funds for whatever you need.
If you're looking for a competitive rate, HELOC borrowers can receive an introductory rate of 4.99% APR through April 1, 2027, with rates going up based on your loan terms. Home equity loans offer five-, 10- and 15-year repayment terms.
To take out a loan you'll need to become a member of Connexus Credit Union first, though anyone can become a member.
Navy Federal Credit Union
Best for Military Families
Minimum Credit Score : 650 | Starting APR : 7.00% | Loan Amount Max: $500,000
If you qualify, Navy Federal Credit Union offers some of the most competitive rates although their maximum loan amount is lower than other financial institutions. The credit union serves active-duty and retired military members, Department of Defense employees and their families.
Applicants can choose between a fixed-rate home equity loan with terms ranging from five to 20 years and variable-rate HELOCs. You may also be able to borrow up to 100% of your home's equity with no closing costs. Borrowers could qualify for a home equity loan for a second home, as long as it's within a certain distance of your primary residence.
Another advantage of a HELOC with this credit union is that it has a 20-year draw period, the longest on our list. Federal Credit Union doesn't publish an official minimum credit score required, though borrowers typically will need around 650 to qualify.
How we analyzed
We came up with the best home equity loans based on factors like starting interest rates, minimum credit score requirements and maximum loan amounts. We considered draw and repayment terms, appraisal requirements, fees, and loan-to-value limits. The best home equity lenders allow borrowers to borrow up to 85% of their home’s value and accept applications with credit scores in the 600s.
