Top HELOC Lenders of February 2025

Best HELOC Lender Overall: Truist Bank

* High available credit lines
* Flexible payment options
* Fixed-rate option with five terms to choose from

Best HELOC Lender Runner-Up: Better Mortgage

* High combined loan-to-value (CLTV) ratio
* No prepayment penalty
* Fast closings

Best HELOC Lender for Customer Satisfaction: Navy Federal Credit Union

* Highest lender score for customer satisfaction
* No annual fee or closing costs
* Interest-only payment option

Best HELOC Lender for Low Fees: Bank of America

* No application, annual, origination, or prepayment fees
* Credit lines up to $1 million
* Discounts for existing customers

Best HELOC Lender for a Quick Closing: New American Funding

* Closes HELOCs in as little as five days
* No annual fee

What is a HELOC?

A HELOC is a line of credit secured by your home equity. You can draw from the line as needed, and you only pay interest on the amount you borrow. HELOCs typically have variable interest rates, but some lenders offer fixed-rate options.

Key Considerations for Getting a HELOC:

* Equity: You need at least 15-20% equity in your home to qualify for a HELOC.
* Credit score: Most lenders require a minimum credit score of 640.
* Debt-to-income ratio (DTI): Your DTI should be less than 50%.

Alternatives to a HELOC:

* Home equity loan: A lump-sum loan that is secured by your home equity.
* Cash-out refinance: A new mortgage that replaces your existing mortgage and provides you with a lump sum of cash.
* HECM reverse mortgage: A type of mortgage available to homeowners 62 or older that allows them to access their home equity.
* Personal loan: An unsecured loan that does not use your home as collateral.

Methodology:

Yahoo Finance reviews and scores HELOC lenders based on available products, fees, CLTV, closing times, maximum DTI, minimum credit scores, maximum credit line, minimum draw, prepayment penalties, special features, and customer satisfaction. Advertisers or sponsorships do not influence ratings.