Mortgages & Real Estate
Best HELOCs of 2026: Top Lenders, Rates & How to Choose
Updated April 2, 2026
Home Equity
Best HELOCs 2026
Quick Answer
Best overall: loanDepot
7.2% intro rate dropping to 7.8%-9.2% variable, 10-year draw period, 90% LTW, accepts credit score 620+
Best rates: Figure
6.99% intro rate (lowest available), 7.5%-8.9% variable range, 7-year draw, but requires 640+ credit and higher LTV standards
Best for credit unions: Bethpage FCU or Third Federal
Prime+1% and Prime+0.75% respectively, 10-year draws, competitive LTV (85%), community-based rates with relationship benefits
Best for no closing costs: Third Federal
Prime+0.75%, full 10-year draw, consistently waives closing costs for qualified borrowers
| Lender |
Intro Rate |
Variable Range |
Draw Period |
Min Credit |
Max LTV |
| loanDepot |
7.2% |
7.8%-9.2% |
10 years |
620+ |
90% |
| Figure |
6.99% |
7.5%-8.9% |
7 years |
640+ |
85% |
| Spring EQ |
Prime+0.5% |
8.1%-9.5% |
5 years |
700+ |
80% |
| Bethpage FCU |
Prime+1% |
8.5%-9.8% |
10 years |
660+ |
85% |
| U.S. Bank |
8.0% promo |
8.5%-9.7% |
10 years |
680+ |
80% |
| Third Federal |
Prime+0.75% |
7.9%-9.3% |
10 years |
650+ |
85% |
Why We Picked It
loanDepot offers the most competitive combination of features for the broadest range of borrowers. The 7.2% introductory rate combined with 90% LTV and 620+ credit score requirements makes this HELOC accessible even to borrowers with fair credit, while the 10-year draw period provides maximum flexibility. loanDepot's national presence and streamlined online application process reduce closing timelines significantly.
Best For
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Variable rate can increase significantly after intro period, potentially reaching 9.2%
Higher LTV (90%) means less home equity cushion if property values decline
Closing costs and appraisal fees apply (typically $400-$800)
Better rates available for borrowers with 700+ credit scores
Why We Picked It
Figure leads the industry with the lowest introductory rate available at 6.99%, leveraging blockchain technology to streamline underwriting and reduce costs. If you have a credit score of 640+ and can accept a slightly shorter 7-year draw period, Figure's rates are genuinely hard to beat. Their all-digital process completes in days rather than weeks.
Best For
Borrowers with good credit (64:+) who prioritize lowest possible interest rates and want a 100% digital, fast closing experience. Ideal for homeowners refinancing existing HELOCs or those accessing equity quickly for time-sensitive needs.
- Introductory rate: 6.99% (lowest available)
- Variable rate range: 7.5% to 8.9%
- Maximum LTV: 85%
- Minimum credit score: 640+
- Draw period: 7 years
Credit union serving educators, public employees, and families
4-Star Rating
Why We Picked It
Bethpage Federal Credit Union offers prime+1% rates with full 10-year draw periods and 85% LTV, making it competitive for borrowers seeking credit union membership benefits. Credit unions often provide relationship-based advantages including better customer service and flexibility on underwriting criteria. Bethpage's eligibility extends to public employees, educators, and their families.
Best For
Public employees, teachers, and families who qualify for Bethpage membership and prefer credit union lending relationships. Best for borrowers who value personal service and are willing to establish longer-term member relationships.
- Rate formula: Prime + 1%
- Variable rate range: 8.5% to 9.8%
- Maximum LTV: 85%
- Minimum credit score: 660+
- Draw period: 10 years
Key Benefits
- Full 10-year draw period matches loanDepot flexibility
- 85% LTV provides good balance of accessibility and equity protection
- Credit union member benefits including lower ATM fees, better deposit rates
- Relationship lending often more flexible on non-standard situations
- Member-focused customer service with local branch support
Watch-Outs
- Prime+1% margin wider than Figure or Spring EQ's top margins
- Membership eligibility limited to specific profession/family groups
- Smaller lender means potentially slower application processing than national banks
- Variable rate currently 8.5%-9.8%, higher than intro-rate competitors
Check Membership Eligibility
First verify you're eligible for Bethpage membership, then explore their member-exclusive rates.
Verify Eligibility
Why We Picked It
U.S. Bank combines a well-known national brand with an 8.0% promotional introductory rate and 10-year draw period. Their extensive branch network provides in-person support, and existing U.S. Bank customers often receive relationship discounts. Balanced option for borrowers valuing brand recognition and local branch access.
Best For
Existing U.S. Bank customers seeking HELOC access through their current relationship. Borrowers who value the convenience of integrated banking and prefer in-person consultation with dedicated loan officers.
- Promotional rate: 8.0%
- Variable rate range: 8.5% to 9.7%
- Maximum LTV: 80%
- Minimum credit score: 680+
- Draw period: 10 years
Key Benefits
- Household name recognition and national branch network
- Competitive 8.0% promotional rate competitive among national banks
- Full 10-year draw period enables long-term borrowitle">Credit union serving educators, public employees, and families
4-Star Rating
Why We Picked It
Bethpage Federal Credit Union offers prime+1% rates with full 10-year draw periods and 85% LTV, making it competitive for borrowers seeking credit union membership benefits. Credit unions often provide relationship-based advantages including better customer service and flexibility on underwriting criteria. Bethpage's eligibility extends to public employees, educators, and their families.
Best For
Public employees, teachers, and families who qualify for Bethpage membership and prefer credit union lending relationships. Best for borrowers who value personal service and are willing to establish longer-term member relationships.
- Rate formula: Prime + 1%
- Variable rate range: 8.5% to 9.8%
- Maximum LTV: 85%
- Minimum credit score: 660+
- Draw period: 10 years
Key Benefits
- Full 10-year draw period matches loanDepot flexibility
- 85% LTV provides good balance of accessibility and equity protection
- Credit union member benefits including lower ATM fees, better deposit rates
- Relationship lending often more flexible on non-standard situations
- Member-focused customer service with local branch support
Watch-Outs
- Prime+1% margin wider than Figure or Spring EQ's top margins
- Membership eligibility limited to specific profession/family groups
- Smaller lender means potentially slower application processing than national banks
- Variable rate currently 8.5%-9.8%, higher than intro-rate competitors
Check Membership Eligibility
First verify you're eligible for Bethpage membership, then explore their member-exclusive rates.
Verify Eligibility
Why We Picked It
U.S. Bank combines a well-known national brand with an 8.0% promotional introductory rate and 10-year draw period. Their extensive branch network provides in-person support, and existing U.S. Bank customers often receive relationship discounts. Balanced option for borrowers valuing brand recognition and local branch access.
Best For
Existing U.S. Bank customers seeking HELOC access through their current relationship. Borrowers who value the convenience of integrated banking and prefer in-person consultation with dedicated loan officers.
- Promotional rate: 8.0%
- Variable rate range: 8.5% to 9.7%
- Maximum LTV: 80%
- Minimum credit score: 680+
- Draw period: 10 years
Key Benefits
- Household name recognition and national branch network
- Competitive 8.0% promotional rate competitive among national banks
- Full 10-year draw period enables long-term borrowing flexibility
- Existing customers receive streamlined application and rate discounts
- In-person support and dedicated relationship managers for larger loans
Watch-Outs
- Higher promotional rate (8.0%) than loanDepot (7.2%) or Figure (6.99%)
- 80% LTV limit lower than loanDepot and some competitors
- Promotional rates end and variable rate can reach 9.7%, among highest in market
- Best rates reserved for existing bank relationships
Open an Account or Apply
U.S. Bank customers qualify for exclusive rate discounts. Open an account or apply for a HELOC through your existing relationship.
Apply with U.S. Bank
Why We Picked It
Third Federal stands out for routinely waiving HELOC closing costs for qualified borrowers, a significant money-saver in a market where closings typically cost $400-$800. Combined with prime+0.75% rates, 10-year draw period, and 85% LTV, Third Federal offers compelling value to borrowers in their service area. This savings advantage is especially important for smaller HELOCs where closing costs represent a larger percentage.
Best For
Borrowers accessing smaller to moderate HELOC amounts ($25,000-$100,000) where closing costs represent meaningful savings. Ideal for those in Third Federal's service area (Ohio, Pennsylvania, Indiana, Florida, New Jersey) who want to minimize borrowing costs.
- Rate formula: Prime + 0.75%
- Variable rate range: 7.9% to 9.3%
- Maximum LTV: 85%
- Minimum credit score: 650+
- Draw period: 10 years
- Closing costs: Frequently waived
Key Benefits
- Routinely waives closing costs, saving borrowers $400-$800+
- Prime+0.75% rate competitive with best variable offerings
- Full 10-year draw provides excellent borrowing window
- 85% LTV offers good balance of access and safety
- Regional focus means local expertise and relationship lending flexibility
Watch-Outs
- Limited geographic service area (OH, PA, IN, FL, NJ)
- Smaller regional bank may have slower application process than nationals
- Current rate 7.9%-9.3% higher than intro-rate competitors
- Closing cost waiver not guaranteed; depends on loan size and qualification
Check Service Area
Third Federal's cost savings are significant only in their service area. Verify coverage in your location before applying.
Verify Service Area
Which HELOC Should You Choose?
Your best HELOC depends on three factors: credit score, LTV needs, and timeline. Use this guidance to narrow down your options.
If you have 620-650 credit:
Choose loanDepot. No other major lender accepts credit scores this low while offering introductory rates. Your access to home equity is limited elsewhere.
If you need 90% LTV:
Choose loanDepot. It's the only major lender offering 90% LTV. If you're denied elsewhere, this is your option.
If you have 640-700 credit and want lowest rates:
Choose Figure. Their 6.99% intro rate is unbeatable. The 7-year draw is sufficient for most borrowers, and their digital process is fastest.
If you want the longest draw period:
Choose loanDepot, Bethpage, U.S. Bank, or Third Federal. All offer 10-year draws vs. Figure's 7-year and Spring's 5-year. Longer draws lower your minimum monthly payment.
If you're closing costs-conscious:
Choose Third Federal (often waives them) or Figure (no appraisal often needed). These save $400-$800 compared to other lenders.
If you value prime-indexed rates and expect rate declines:
Choose Spring EQ (Prime+0.5%) or Third Federal (Prime+0.75%). Your rate moves directly with the Fed. Fixed-intro rates lock you in higher if rates fall.
If you qualify for credit union membership:
Choose Bethpage. Credit union rates, member benefits, and relationship lending flexibility often outweigh small rate differences.
If you have 700+ credit and stable income:
You can access Spring EQ's best rates. But compare to Figure's 6.99% intro, which might still beat Sprine's Prime+0.5% for the first few years.
HELOC vs Home Equity Loan vs Cash-Out Refi: Which Wins?
Three tools let you access home equity. Each solves different borrowing problems.
Home Equity Line of Credit (HELOC)
How it works: Revolving credit like a credit card. Draw as much or as little as you need during the draw period (typically 10 years), repay flexibly, and redraw if you need more.
Best for: Projects that unfold over time (renovations), variable borrowing needs, flexibility maximization, or backup emergency access.
Pros: Pay interest only on what you draw. Draw period means multiple borrowings possible. Lowest monthly payments early on.
Cons: Interest rates variable (not fixed). After draw period ends, you enter repayment-only phase with steep payments.
Home Equity Loan (HEL)
How it works: Fixed-rate, fixed-term installment loan. Borrow a specific amount, repay in equal payments over a set period (typically 5-15 years).
Best for: Specific, known expenses (single renovation project, debt consolidation, college tuition). Predictable repayment. Fixed-budget mentality.
Pros: Fixed rates mean payment certainty. Fixed term means you know when debt is gone. Often lower rates than unsecured personal loans.
Cons: Borrow as lump sum, not as-needed. Higher upfront closing costs. Less flexibility if circumstances change.
Cash-Out Refinance
How it works: Refinance your existing mortgage and take out extra cash. Your new mortgage is larger and replaces your original.
Best for: Large borrowing needs ($50,000+) when rates are favorable. Consolidating multiple debts into one mortgage payment.
Pros: Often lowest rates available (mortgage rates beat home equity rates). Can consolidate all debt into one payment. Simplest if refinancing anyway.
Cons: Extends your payoff timeline (you're refinancing your entire mortgage, not just borrowing against equity). High closing costs ($2,000-$5,000). Requires significant equity.
The verdict: Choose HELOC for flexibility and variable needs. Choose home equity loan for fixed amounts and payment certainty. Choose cash-out refi for large amounts when mortgage rates are favorable compared to HELOC rates.
Our Methodology
We evaluated 6 major HELOC lenders on five criteria weighted by borrower priority:
- Interest rates (35%) - Introductory rates, variable ranges, and prime spreads. Lower is always better.
- Loan-to-value limits (20%) - Higher LTV means more borrowing access. We weighted LTV accessibility heavily.
- Draw period length (20%) - Longer draw periods provide more flexibility. We prefer 10 years over 7 or 5.
- Credit score requirements (15%) - Lower minimums mean broader accessibility. We favored lenders accepting 620-650+ scores.
- Speed and convenience (10%) - Application speed, digital options, and closing timelines matter, especially for time-sensitive borrowing.
All data current as of April 2026. Rates change daily and vary by location, property value, and credit profile. Always get personalized quotes before deciding. This information is educational and not financial advice.
Frequently Asked Questions
What is the best HELOC right now?
loanDepot is the best overall HELOC for 2026, offering 7.2% intro rate, 10-year draw, 90% LTV, and 620+ credit access. However, "best" depends on your profile. If you have 640+ credit, Figure's 6.99% rate beats everyone. If you're credit-union-eligible, Bethpage or Third Federal offer competitive member-first rates.
What credit score do I need for a HELOC?
Minimum credit scores range from 620 (loanDepot) to 700 (Spring EQ). Most major lenders require 640-680+ for approval. The lower your credit, the higher your rate and LTV limits drop. Credit scores above 700 unlock best rates across all lenders.
Is a HELOC better than a home equity loan?
It depends on your borrowing pattern. HELOCs are better for flexible, ongoing needs (multi-phase renovations, variable emergencies). Home equity loans are better for specific, one-time amounts where you want fixed payments and rate certainty. HELOCs carry interest-rate risk; HELs don't.
How long does it take to get a HELOC?
Timeline varies by lender. Figure (digital-first) typically closes in 5-7 days. Traditional lenders like U.S. Bank or loanDepot average 2-4 weeks. Credit unions like Bethpage may take 3-6 weeks. Appraisals, title work, and underwriting all add time. Plan for 2-4 weeks as a safe expectation.
Are HELOC interest payments tax deductible?
Yes, HELOC interest is tax deductible if funds are used to "build, buy, or substantially improve" your home (not used for personal consumption). Interest must exceed the standard deduction to matter for tax purposes. Consult a tax professional for your specific situation, as tax laws vary by state and individual circumstance.
What is the difference between a HELOC draw period and repayment period?
Draw period (typically 10 years) is when you can borrow as needed. After draw period ends, repayment period begins (typically 20 years), during which you cannot draw new funds, only repay existing balance. Plan for repayment shock when draw ends, as monthly payments spike significantly.
Can I pay off a HELOC early without penalty?
Yes. Unlike some mortgages, HELOCs have no prepayment penalties. Pay off at any time. Many borrowers strategically use HELOCs to bridge short-term needs, then repay within 1-2 years while rates are low.
Affiliate Disclosure: WalletGrower recommends products from partners we trust. We earn commissions when you apply through our links. This does not increase your cost and helps fund our independent research. All recommendations are unbiased and based on rigorous product evaluation.
Next Steps
Step 1: Check your credit score. Know your starting position before applying. Different lenders serve different credit tiers.
Get Your Free Credit Score
Credit Sesame provides free credit monitoring and shows you exactly how lenders will view your profile.
Check Your Score Now
Step 2: Get personalized HELOC quotes. Rates vary by loan amount, location, and property value. Get 3-5 quotes before deciding.
Step 3: Compare total costs, not just interest rates. Include closing costs, appraisal fees, annual fees (if any), and repayment shock calculations when the draw period ends.
Build Your Financial Plan
Albert's comprehensive dashboard tracks all your assets, debts, and borrowing options in one place. Plan your HELOC strategy alongside your full financial picture.
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Related Resources
Explore WalletGrower's Home Hub for complete home equity guidance:
Important Disclosure: This article is for educational purposes and does not constitute financial advice. HELOC terms, rates, eligibility, and availability change continuously. Rates shown are accurate as of April 2026 but may have changed. Always verify current terms directly with lenders before applying. Your specific rate depends on credit score, property value, loan amount, location, market conditions, and your lender's current pricing. Consult a financial advisor or tax professional before making major borrowing decisions. WalletGrower earns commissions when you apply through our partner links, but all recommendations are made independently.
