If you need money for large purchases, a home equity line of credit (HELOC) is a solid choice — especially if you want to draw cash as you go rather than receive the money in one lump sum. The best home equity line of credit lenders offer low fees, flexible repayment terms, high customer satisfaction ratings, and quick closings.
The best HELOC lenders: August 2026
Best HELOC lender overall: Truist Bank
Why Truist Bank HELOCs stand out: Truist excels as a HELOC provider due to its high available credit lines and payment flexibility.
Truist Bank HELOC details
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Availability: 17 states and Washington, D.C. (AL, AR, CA, FL, GA, IN, KY, MD, NC, NJ, OH, PA, SC, TN, TX, VA, and WV)
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Line of credit limit: $1 million
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Minimum credit score: Truist did not provide a minimum credit score for HELOCs when Yahoo Finance inquired for this information.
Pros
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Truist offers home equity credit lines up to $1 million.
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Allows borrowers to select interest-only or revolving payments during the draw period.
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Offers a fixed-rate HELOC option with five terms to choose from (5, 10, 15, 20, or 30 years) for a $15 fee in most states.
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It allows for a combined loan-to-value ratio (CLTV ratio) of up to 89%; this includes the loan-to-value ratio on your house with your primary mortgage and the amount you want to borrow with the HELOC.
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Truist allows for a debt-to-income ratio (DTI) of up to 50% for HELOCs.
Cons
Best HELOC lender for accessing a high percentage of your home equity: Better Mortgage
Why Better HELOCs stand out: Better offers a range of benefits, including a high combined loan-to-value ratio and fast closings.
Better HELOC details
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Availability: All 50 states and Washington, D.C.
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Line of credit limit: $500,000
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Minimum credit score: 640
Pros
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Has a CLTV limit of 90% when considering your existing mortgage.
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Better says it can close on a HELOC in as few as seven days.
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Offers the flexibility of a HELOC or a lump-sum home equity loan.
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Recently launched a Bank Statement HELOC, so borrowers only need to submit bank statements when they apply; this is ideal for self-employed homeowners or others with unique financial situations.
Cons
Why Navy Federal Credit Union HELOCs stand out: NFCU is a customer-satisfaction champion with no annual fee or closing costs for HELOCs.
Navy Federal Credit Union HELOC details
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Availability: All 50 states and Washington, D.C.
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Line of credit limit: $500,000
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Minimum credit score: NFCU did not disclose this information when contacted by Yahoo Finance.
Pros
Cons
Best HELOC lender for no closing costs: Bank of America
Why Bank of America HELOCs stand out: BofA shines as a no-closing-costs HELOC lender, offering credit lines up to $1 million and discounts to loyal customers.
Bank of America HELOC details
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Availability: All 50 states and Washington, D.C.
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Line of credit limit: $1 million
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Minimum credit score: A BofA representative told Yahoo Finance that the bank does not publish a minimum credit score for HELOCs.
Pros
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Bank of America charges no application fees, annual fees, or closing costs. However, if you close your account within 36 months of opening it, you may have to pay an “early closure fee.”
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Offers credit lines of up to $1 million.
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A BofA rewards program for existing customers can provide interest rate discounts.
Cons
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Does not disclose a minimum qualifying credit score or debt-to-income ratio (DTI).
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The average closing time for HELOCs is 50 days.
Why New American Funding HELOCs stand out: New American Funding promotes HELOC closings as fast as five days.
New American Funding HELOC details
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Availability: All 50 states, Washington, D.C., and Puerto Rico
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Line of credit limit: $400,000
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Minimum credit score: 640
Pros
Cons
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Promotes “no out-of-pocket costs.” That may mean that lender expenses are deducted from your credit line, but no additional information is provided on the website.
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You must withdraw the full amount of your credit line at closing.
Read our complete New American Funding review.
How does a home equity line of credit work?
HELOCs are versatile tools for homeowners with equity. First, most providers allow you to withdraw cash as needed. That reduces debt and interest costs over the years. You can withdraw money, pay it back — and then circle back whenever you need some more cash liquidity in your financial life.
There’s no limit on how you can use the money from a HELOC. However, you should always consider whether taking on more debt and using your home as collateral is worth the risk and costs.
HELOC draw and repayment periods
A HELOC has two main components: You take out the money (the draw period) and pay it back over time (the repayment period). That means you can borrow and pay back the money during the initial draw period, but you cannot access the credit line during the repayment period.
For example, many HELOCs allow 10-year draws and then 20-year repayment periods. There can be variations.
Be sure to consider just how long you want to be saddled with the debt for something you spent money on years and years ago — and the interest you will pay over what is likely to be 30 years.
How do you get a HELOC?
Of course, you must have some value built into your house to qualify for a HELOC. That usually comes from years of payments and market-price appreciation. With 15% to 20% equity, you’ll have enough to apply for a HELOC. As you did with your first mortgage, you’ll want to shop around for the best offer.
Getting a HELOC won’t be as difficult as obtaining a first mortgage, but there’s still some paperwork to complete. As always, your creditworthiness comes into play: things like your credit score, existing debt — you know the drill. Be patient. Expect the process to take a few weeks, and then revel in the surprise if it happens sooner.
Different types of HELOCs
When shopping for a HELOC, two options may be presented. Here’s what you’ll want to know.
Interest-only HELOCs
It may seem pretty easy to understand an interest-only HELOC. You’re not paying the debt down during the draw period; you’re just paying interest to the lender. When the draw period ends, your payments are amortized with principal and interest.
One thing to remember: Most HELOCs have adjustable interest rates, so your monthly interest payment is likely to vary.
Fixed-rate HELOCs
Some lenders offer fixed-rate HELOCs. You may have to pay a fee to get it, but you’ll lock in an interest rate on some or all of your balance for the long term. That’s a good idea if interest rates are rising. Maybe not so much if rates are expected to go lower.
In our current world of range-bound interest rates, it may be a toss-up. But the lure of an interest rate that won’t jump higher on you can be appealing.
Ways to use funds from a HELOC
While a HELOC can be used for any purpose, these are among the most popular uses of cash from a home equity line of credit:
Can you refinance a HELOC?
The repayment period on a HELOC can be grueling. You have depleted most, if not all, of your home’s equity and now face many years of paying down debt. You might wonder if a HELOC can be refinanced.
If you have already tapped out your home equity, the options may be limited. If you truly have difficulty making the payments, a loan modification may be your best choice.
Can you deduct HELOC interest on your taxes?
A significant change in the tax laws is giving you more tax deductibility for a HELOC. Beginning in the 2026 tax year, you can deduct HELOC interest on your taxes, up to a specific dollar limit, regardless of what you used the proceeds for.
Alternatives to a HELOC
Cashing in on the equity in your house without selling it can be achieved in three additional ways besides using a HELOC.
Home equity loan
Qualifying for a home equity loan is similar to the process involved with a HELOC. The primary difference is that while you draw from a line of credit as you wish, a home equity loan is delivered in a lump sum of cash. There is no 10-year draw term, so repayment begins shortly after closing and can last from five to 30 years.
One other distinction: While HELOCs usually have variable interest rates with some lenders offering fixed-rate options for a fee, HELs are usually fixed-rate loans from the start.
Cash-out refinance
Rather than adding a second mortgage to your home with a HELOC or a HEL, you can trade in your old home loan for a new cash-out refinance. You get the lump sum and make one payment on the new mortgage.
HECM reverse mortgage
If you’re 62 or older, a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, may be an appealing option. A portion of your equity is distributed to you as a lump sum, a monthly payment to you, a line of credit, or a combination of a line and a monthly payment.
As you receive that money, interest and debt accrue against the home’s value, which is repaid when you move, sell the house, or die.
Personal loan
A personal loan doesn’t draw from your home’s equity, but it can put cash in your pocket. And you don’t have to put your home up as collateral. However, an unsecured personal loan can mean a higher interest rate.
Personal loans won’t usually put tens of thousands of dollars in your pocket, but terms are shorter than HELOCs so your debt won’t linger for decades.
Best HELOC lender FAQs
What is the best place to get a HELOC?
In our view, the overall best place to get a HELOC is Truist Bank. You will also find our other reviewed lenders are worthy contenders — outstanding in one way or another.
Who has the best HELOC deals right now?
The best deals are fleeting and require a hunting instinct. Since interest rates are constantly changing, and mortgage lenders are often tweaking available specials, you’ll want to keep a few lenders on your radar. Check their websites for limited-time offers. But when you’re ready to get rolling with a HELOC, ask your contenders for any unadvertised specials that may be available.
What are HELOC rates right now?
The average national rate on a home equity line of credit is 7.2%, according to the analytics company Curinos. Several factors influence HELOC rates, and they vary by location, property value, mortgage balance, loan amount, and credit score.
What is the fastest HELOC approval?
The Better Mortgage One Day HELOC™ program offers eligible customers HELOC approval within 24 hours, then funding in as few as seven days.
Methodology: How we chose the top HELOC lenders
Yahoo Finance reviews and scores HELOC lenders based on: 1) Available products, 2) Fees, 3) CLTV, 4) Closing times, 5) Maximum DTI, 6) Minimum credit scores, 7) Maximum credit line, 8) Minimum draw, 9) Prepayment penalties, 10) Special features, and 11) Customer satisfaction.
Advertisers or sponsorships do not influence ratings.
Editorial disclosure for mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender’s website for the most current information. This site doesn’t include all currently available offers.