Top Home Equity Loan Options

Our experts have identified some of the strongest home equity loan choices available. Before you decide, take a look at our reviews to compare the options.

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Guide to choosing the best home equity loans

Ready to shop? Start with the top picks:

Large expenses can add up quickly, whether you are renovating a kitchen, covering a child’s college tuition, or paying down high-interest debt. As a homeowner, you may already have access to the money you need. According to an ICE Mortgage Monitor report, homeowners with mortgages hold trillions in home equity, and a large share of it may be available through home equity loans.

A home equity loan lets you borrow against your equity and receive a lump sum that you repay in installments. A home equity line of credit, or HELOC, works more like a credit card, with approval for a borrowing limit you can draw from as needed.

These loans often come with lower interest rates than personal loans or credit cards. They may also let you borrow more and use the money for nearly any purpose. Keep in mind that your home serves as collateral, so only borrow what you can comfortably repay.

Editors’ picks

Figure Lending

Editors’ Favorite

Minimum Credit Score: 640 | Starting APR: 7.35% | Loan Amount Max: $750,000

Figure is an online lender focused on HELOCs. It offers HELOCs with fixed interest rates, which is unusual for this type of credit and can make monthly budgeting easier because your payment will not rise when rates increase. The entire application process can be completed online, and borrowers can choose repayment terms of five, 10, 15, or 30 years.

The 640 minimum score is somewhat higher, but it may still be within reach for many homeowners. Figure often does not require an in-person appraisal and instead uses an automated valuation model, which can speed up the process and may save you the cost of a traditional appraisal. Funds may also arrive quickly, sometimes in as little as five days.

Figure may be the better choice if you do not need to borrow a large amount and want faster funding. Availability is limited in some states, so check the lender’s website to see whether it operates 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 offers one of the more competitive HELOC rates, starting at 5.24% APR for the introductory period before the variable rate rises to as low as 5.94% APR. There are no application, closing, or annual fees, which can help keep upfront costs down, especially on larger HELOCs. Qualified borrowers make interest-only payments during the 10-year draw period, followed by a 20-year repayment term.

While M&T is not available in all 50 states, borrowers in eligible areas may qualify for one of three fixed-rate options. Vacation homes and manufactured homes can also qualify, though borrowing limits may be lower for those property types.

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, giving borrowers a choice between products. It also provides fixed and variable rate options. Fixed-rate terms range from five to 30 years, and interest-only payments are available for the first five years.

PNC accepts borrowers with credit scores just above 600, the lowest minimum on this list. That makes it a solid option for applicants with weaker credit. Depending on your financial profile, you may be able to borrow up to $1 million and up to nearly 90% of your home’s value.

This bank is a strong starting point if you want the widest selection of rates and repayment terms. An in-person appraisal is required, and the bank does not lend in every state.

Connexus Credit Union

No Appraisal Needed

Minimum Credit Score: 640 | Starting APR: 7.30% | Loan Amount Max: Not disclosed

Connexus Credit Union offers both home equity loans and HELOCs and does not require an in-person appraisal. Its standard HELOC includes a 15-year draw period and a 15-year repayment period, giving borrowers ample time to access funds for a range of needs.

Borrowers seeking a competitive rate can get an introductory HELOC APR of 4.99% through April 1, 2027, with rates varying based on loan terms. Home equity loans are available with five-, 10-, and 15-year repayment periods.

To borrow, you must first become a Connexus Credit Union member, although membership is open to anyone.

Navy Federal Credit Union

Best for Military Families

Minimum Credit Score: 650 | Starting APR: 7.00% | Loan Amount Max: $500,000

For eligible borrowers, Navy Federal Credit Union offers highly competitive rates, though its maximum loan amount is lower than some other lenders. The credit union serves active-duty and retired military members, Department of Defense employees, and their families.

Applicants can choose a fixed-rate home equity loan with terms from five to 20 years or a variable-rate HELOC. You may also be able to borrow up to 100% of your home’s equity with no closing costs. Borrowers may qualify for a home equity loan on a second home, provided it is within a certain distance of the primary residence.

Another advantage of its HELOC is a 20-year draw period, which is the longest on this list. Navy Federal Credit Union does not publish an official minimum credit score, though borrowers generally need around 650 to qualify.

How we evaluated

We selected the best home equity loans by weighing factors such as starting interest rates, minimum credit score requirements, and maximum loan amounts. We also considered draw and repayment terms, appraisal requirements, fees, and loan-to-value limits. The strongest lenders allow borrowing up to 85% of a home’s value and accept applications from borrowers with credit scores in the 600s.