Finding the right home equity loan lenders can save you thousands of dollars in interest and fees. With dozens of financial institutions offering home equity loans, each lender has different requirements, rates, and terms. Understanding these differences helps you secure the best deal for your specific situation.
The home equity lending landscape has evolved significantly in recent years. Traditional banks now compete with online lenders, credit unions, and fintech companies for borrowers’ business. This competition benefits consumers through lower rates, reduced fees, and streamlined application processes.
Top Home Equity Loan Lenders in 2025
PNC Bank: Best Overall Choice
PNC Bank earned the highest rating with 4.85 out of 5 stars among over 60 analyzed home equity products. The bank stands out for offering large loan amounts, low credit score requirements, and diverse rate and term options.
PNC provides an introductory 0.25% interest rate for eligible properties in low-to-moderate income areas. This special rate program makes homeownership more affordable for qualifying borrowers in underserved communities.
The lender accepts applications for single-family homes, townhouses, planned developments, most condominiums, and duplexes. Both primary and secondary residences qualify for financing, providing flexibility for various property types.
Navy Federal Credit Union: Military Members’ Top Choice
Navy Federal Credit Union is the only reviewed lender allowing qualified homeowners to borrow up to 100% of their home’s value. This unique benefit serves military families who may have limited savings for large expenses.
Military borrowers receive additional advantages including extra discounts and streamlined approval processes. Navy Federal pays all closing costs on home equity loans and doesn’t require origination or application fees, reducing upfront expenses significantly.
The credit union offers competitive rates starting at 7.750% APR for borrowers with excellent credit scores. Processing times currently average 30-40 calendar days once applications are received.
U.S. Bank: National Coverage Leader
U.S. Bank offers home equity loans throughout the entire country — the top-scoring lender to do so. This nationwide availability benefits borrowers in areas with limited local lending options.
The bank covers all closing costs for borrowers and offers discounts for automatic payment setup and existing banking customers. Funds become available within three business days after closing, with no closing costs charged to borrowers.
U.S. Bank provides fixed-rate loans with terms up to 30 years, giving borrowers flexibility in managing monthly payments. Their online application process is streamlined and user-friendly.
Rocket Mortgage: High Loan Amounts Available
While many lenders cap borrowers at 80% of their home equity, Rocket Mortgage allows borrowing up to 90% with credit scores of 740 or better. This higher loan-to-value ratio helps borrowers access more funds.
Rocket Mortgage offers fixed-rate home equity loans between $45,000 and $500,000, compared to $35,000 to $300,000 with most lenders. These higher limits accommodate major renovation projects or debt consolidation needs.
The lender is known for exceptional customer service and user-friendly digital platforms. However, Rocket Mortgage accepts applicants with as little as 10% home equity, though best rates require higher equity positions.
Credit Union Options Worth Considering
Third Federal Savings: Rate Guarantee Promise
Third Federal’s Lowest Rate Guarantee means it will beat a credible competitor’s rate for a home equity loan or pay you $1,000 after closing with comparable terms. This guarantee provides confidence in securing competitive rates.
Unlike most lenders, Third Federal offers both fixed and adjustable-rate home equity loans. Borrowers can also use vacation homes as collateral, expanding financing options beyond primary residences.
Third Federal is the only lender surveyed that offers a personalized rate tool with instant quotes without requiring contact information submission. This transparency helps borrowers evaluate options without pressure.
TD Bank: Lower Credit Score Acceptance
While most lenders require 680 FICO scores for home equity loans, TD Bank accepts applicants with scores as low as 660. This flexibility helps borrowers with fair credit access home equity financing.
TD Bank excels at smaller loan amounts, allowing borrowers to take as little as $10,000. The bank also charges a relatively low $99 origination fee, reducing upfront costs for borrowers.
TD Bank’s website is streamlined and easy to use, with a rate tool that customizes options based on your location. This localized approach helps borrowers understand available terms in their specific markets.
Connexus Credit Union: Small Loan Specialist
The majority of lenders require borrowers to pull out a minimum of $10,000, but Connexus Credit Union offers loans as low as $5,000. This flexibility serves borrowers with smaller financing needs.
Connexus maintains transparent pricing and offers loan-to-value ratios up to 90%, higher than most competitors. The credit union serves members nationwide except Texas, providing broad accessibility.
Home equity loans are available with terms of 10, 15, or 20 years. This variety allows borrowers to choose repayment schedules that fit their budgets and financial goals.
Major Bank Lenders to Consider
Bank of America: Relationship Banking Benefits
Bank of America leverages existing customer relationships to provide enhanced home equity loan benefits. Borrowers can receive rate discounts for automatic payments and initial draw amounts, plus additional discounts based on Preferred Rewards tier status.
The bank allows borrowing up to 85% of home value minus existing mortgage balances. Setting up automatic payments from Bank of America checking or savings accounts earns a 0.25% interest rate discount.
Initial withdrawal discounts provide 0.10% rate reductions for each $10,000 withdrawn, up to maximum 1.50% total discount. These incentives reward borrowers for larger initial draws and banking relationships.
Flagstar Bank: No Closing Cost Option
Flagstar doesn’t charge closing costs on home equity products and approves loans for as little as $10,000 or as much as $1 million. This wide range accommodates diverse borrowing needs without upfront fees.
Existing Flagstar customers receive 0.25% rate discounts on home equity loans when setting up automatic payments through their checking accounts. This relationship pricing rewards customer loyalty.
The bank serves borrowers in most states except Texas, providing broad geographic coverage. Loan terms range from 5 to 30 years for maximum flexibility.
Online and Fintech Lenders
Figure: Technology-Driven HELOC Leader
Figure, an online financial technology company, offers top-rated HELOCs with low fixed interest rates and four term options ranging from five to 30 years. The company’s minimum credit score requirement is relatively low at 640.
Figure typically avoids in-person appraisals by utilizing Automated Valuation Models instead. This approach speeds the application process and reduces costs for borrowers.
The lender’s digital-first approach appeals to borrowers who prefer online interactions over traditional bank visits. Processing times are generally faster than conventional lenders.
Spring EQ: Specialized Home Equity Focus
Spring EQ focuses specifically on home equity loans and HELOCs, bringing specialized expertise to the market. The Philadelphia-based lender established in 2016 offers various loan options for different financial situations.
As a specialist lender, Spring EQ often provides more flexible underwriting and creative solutions for complex borrowing scenarios. Their focused business model allows for enhanced customer service in the home equity space.
The lender serves borrowers nationwide and offers both traditional home equity loans and lines of credit to meet diverse financing needs.
Regional and Local Lender Options
RBFCU: Texas Homestead Specialists
Randolph-Brooks Federal Credit Union offers home equity products specifically for Texas properties, with unique requirements for primary residence homestead loans. The maximum loan-to-value ratio is 80% per Texas law.
RBFCU typically closes home equity loans within 45 days and provides manufactured home financing with specific requirements. The credit union serves over 1 million members in Texas and worldwide.
Texas homestead laws provide unique protections and requirements that specialized lenders like RBFCU understand thoroughly. This expertise benefits borrowers navigating complex state regulations.
Truist Bank: Flexible Rate Options
Truist offers home equity lines where borrowers can choose between fixed or variable interest rates on each draw. This flexibility allows borrowers to optimize their borrowing costs based on market conditions.
The bank provides three payment options during draw periods, including interest-only payments. Variable-rate minimum monthly payments equal 1.5% of total outstanding balance, helping borrowers manage cash flow.
Truist’s dedicated loan officers provide personalized service throughout the application process. Quick decisions and streamlined applications make the borrowing experience efficient.
Key Factors When Comparing Lenders
Credit Score Requirements
Most lenders look for minimum credit scores of 680 or higher, though some accept scores as low as 620-660. Higher scores unlock better rates and terms across all lenders.
Navy Federal and PNC Bank offer more flexible credit requirements, particularly for military borrowers and those in underserved areas. Credit unions generally provide more lenient qualification standards than major banks.
Review your credit report before applying to understand your qualification likelihood. Address any errors or negative marks that could impact loan approval or pricing.
Loan-to-Value Ratio Limits
Most lenders allow borrowing up to 85% of home value, though some offer higher ratios at premium rates. Navy Federal’s 100% LTV option is unique among reviewed lenders.
Higher loan-to-value ratios provide access to more funds but typically come with higher interest rates. Conservative borrowing ratios often result in better pricing and loan terms.
Consider your long-term financial plans when determining appropriate borrowing amounts. Maintaining equity cushions protects against market downturns and provides future flexibility.
Fees and Closing Costs
U.S. Bank and Navy Federal cover all closing costs for borrowers, while others charge varying fees for appraisals, origination, and processing. These cost differences significantly impact total borrowing expenses.
Some lenders waive fees for existing customers or those meeting specific requirements. Compare total costs rather than focusing solely on interest rates when evaluating loan offers.
Flagstar waives closing costs if accounts remain open for at least 36 months, while others charge fees upfront regardless of loan duration.
Application and Approval Process
Documentation Requirements
Most lenders require recent pay stubs, tax returns, bank statements, and property information. Documentation typically includes proof of insurance, current mortgage statements, and income verification.
Self-employed borrowers need additional documentation including profit and loss statements, business tax returns, and bank statements covering longer periods. Preparation speeds the approval process significantly.
Military borrowers may have streamlined documentation requirements at lenders like Navy Federal. Specialized lenders often understand unique income situations better than generalist institutions.
Processing Timeframes
CrossCountry Mortgage reports average closing timelines of 21 days, faster than many competitors. Processing times vary significantly between lenders and loan complexity.
Navy Federal currently estimates 30-40 calendar days to close new home equity loans once applications are received. Complex situations or property issues can extend timelines further.
Online lenders often process applications faster than traditional banks due to automated underwriting systems. However, complex cases may still require manual review and longer processing times.
Making the Right Lender Choice
Rate Shopping Strategy
Shopping around with at least three lenders can help get the best rates. Rate differences between lenders can save thousands over loan terms.
Apply to multiple lenders within short timeframes to minimize credit score impacts. Most credit scoring models treat multiple mortgage inquiries as single events when clustered together.
Consider both initial rates and potential rate adjustments for variable products. Fixed-rate loans provide payment predictability while variable rates may offer lower initial costs.
Relationship Banking Benefits
Existing banking relationships often provide rate discounts, fee waivers, or streamlined processing. However, loyalty shouldn’t prevent comparison shopping for better overall terms.
Credit union membership may provide access to better rates and more flexible qualification standards. Membership requirements vary but often include employer affiliations or geographic restrictions.
Local lenders may offer more personalized service and flexible underwriting for unique situations. However, their rates may not always compete with larger institutions’ offerings.
Choosing the right home equity loan lender requires careful comparison of rates, terms, fees, and service quality. Top-rated lenders like PNC Bank combine competitive rates with excellent service, while specialized institutions serve specific borrower segments effectively.
Consider your individual needs including credit score, loan amount, property type, and service preferences when selecting a lender. The lowest rate isn’t always the best choice if service quality or loan terms don’t meet your requirements.
Take time to research multiple options and read customer reviews before making final decisions. The right lender partnership can save significant money while providing excellent service throughout the borrowing process.