Best HELOC Lenders: Which One is Right for You?

A home equity line of credit (HELOC) offers the convenience of a credit card but with relatively low interest rates and credit limits that are generally higher. If you’re looking to tap into your home’s equity for an ongoing project, such as a home renovation or tuition, a HELOC can be a useful tool.

But finding the HELOC product that fits your needs isn’t always easy. Not all HELOCs are the same and you’ll want a line of credit that is aligned with your financial goals.

We’ve done the hard work for you and ranked the six best HELOC lenders below, with a focus on how each lender excels for different types of borrowers.

Top 6 best HELOC lenders

1. TD Bank (NMLS #399800)

Best for: Borrowers looking for a high CLTV ratio

Maximum CLTV: 89.99%

Amount: Minimum $25,000

Minimum draw: None

Fees: Origination  ($99), annual ($50), early termination (2% up to $450), closing costs for HELOCS greater than $500,000, investment properties, and co-ops.

Special features: -0.25% off APR with a TD Bank personal checking account

TD Bank’s HELOC comes with a relatively high maximum CLTV of 89.99%, which is substantially higher than the 80-85% that other big banks usually offer. That means you can tap into more of your home equity. Plus, there’s no minimum draw amount, so you only need to worry about paying interest on what you need when you need it.[1]

However, TD Bank does have some drawbacks. Its minimum HELOC amount is $25,000, so it’s not a great option if you’re only looking to borrow a small sum. Its fees can also add up, with origination and annual fees, as well as early termination and closing costs in some cases.

What customers say

“I won't go to another bank, Whenever I need help or need customer service, I get it and the people I talk to are always nice and know exactly how to help me.” — Pamela, Trustpilot

“TD Bank HELOC (tapintoequity.td.com) is a total waste of time! After 20 days with a 800+ credit score, 1 million dollars in real state and a 6 figure salary the loan was denied.” — Luis, Trustpilot

2. Navy Federal Credit Union (NMLS# 399807)

Best for: Military members and their families seeking a long draw period

Maximum CLTV: 95%

Amount: $10,000 to $500,000

Draw period: 20 years

Repayment period: 20 years

Fees: No application, origination, annual or inactivity fee. No closing costs.

Special features: Access funds with a credit card. Interest-only options available.

Navy Federal Credit Union’s HELOC provides excellent benefits for military members and their families. The maximum CLTV ratio of 95% is among the highest in the industry, there are no fees, and the draw period of 20 years is double what other lenders typically offer. You can also access your funds via a credit card that comes with no annual fee, travel assistance, and auto rental collision damage waiver.[2]

But the most obvious drawback of Navy Federal is that most people aren’t eligible to join. Unless you have some military connection, you typically won’t be allowed to become a member.

What customers say

“The assigned loan officer provided timely and clear communications about the overall HELOC process. This effort continued as we embarked on the various steps to complete the loan application.” — Howard, Trustpilot

“I have been a member of NFCU for almost 25 years. Our recent HELOC application process is making me reconsider our membership and I have started banking elsewhere. Their treatment towards their members has really taken a turn for the worst, it’s really sad.” — Raquel U., Google

3. PenFed Credit Union (NMLS# 401822)

Best for: Borrowers looking for a low rate and quick closing

Maximum CLTV: 85%

Amount: $25,000 to $500,000

Draw period: 10 years

Repayment period: 20 years

Fees: Annual ($99). Closing costs of $500 to $8,500 for HELOCs of $500,000.

Special features: Fast closing in as few as 15 days.

PenFed Credit Union’s HELOC has loan amounts and draw and repayment terms that are all fairly standard for the industry. But where it stands out is its fast closing process and low rates. You can access your funds in as few as 15 days, making it ideal for borrowers who need to tap into their equity quickly. And its interest rates tend to be competitive, depending on your location and eligibility.

While there aren’t any obvious major drawbacks to PenFed Credit Union, be aware that if you borrow the full amount of $500,000, you’ll have to pay closing costs of $500 to $8,500.[3]

What customers say

“Great services and representatives. Easy application processes. A+” — Anthony H., Trustpilot

“The loan process via PenFed was mostly problem free. My HELOC loan representatives were very helpful. The amount requested was mostly what I requested but I was anticipating being offered more considering the property used.” — Michael B., Google

4. Alliant Credit Union (NMLS# 197185)

Best for: Borrowers looking for low promotional rates

Maximum CLTV: 85%

Amount: Minimum $10,000 in most states

Draw period: 10 years

Repayment period: 20 years

Fees: Annual fee ($50). No application fee. $200 early termination fee (first 36 months). No closing costs for amounts up to $250,000.

Special features: 3.99% APR for first six months.

Alliant Credit Union’s 3.99% APR in the first six months means you can potentially save a lot of money on interest if you plan on withdrawing most of your HELOC early. In most of the states it operates, the minimum line of credit is just $10,000, making it a good choice for those looking for a relatively smaller loan.

However, while Alliant’s promotional rate is attractive, you’ll need to watch out for the rate you’ll be charged afterwards, which can be slightly higher than the competition. Also, Alliant only operates in 25 states plus the District of Columbia, so it may not be an option where you are.[4]

What customers say

“I use Alliant Credit Union for all my banking needs. I've been a member since 2006, and they're really great to work with. I have my mortgage, HELOC, credit cards, Checking and Savings with them and I love what they offer.” — Tony T., Trustpilot

“I have my mortgage and HELOC with them and its so hard to make payments online. They online portal is always down and its very hard to get a knowledgeable representative on the phone.” — Austin S., BBB

5. Splash Financial (NMLS# 1630038)

Best for: Digital-savvy borrowers looking to close fast

Maximum CLTV: 90%

Amount: Up to $500,000

Minimum draw: At least $75,000 for HELOCs above $100,000 or 75% for those below $100,000.

Draw period: 10 years

Repayment period: 10-20 years

Fees: Annual fee ($100). Other fees may apply.

Special features: Close in as few as 10 days.

Splash Financial’s HELOC boasts an incredibly fast closing time, with funds available in as few as 10 days after applying. Its digital-first application process is also quick and easy to navigate and makes it ideal for those who prefer applying online.

Where Splash comes up short is its minimum draw amounts, which are $75,000 for HELOCs over $100,000 or 75% for HELOCs under $100,000. That makes them unsuitable for borrowers who only want to withdraw small amounts at a time. Plus, Splash is only available in 15 states.[5]

What customers say

“Splash Financial is one of the easiest Companies to work with. Super-fast approval process and payment. Customer Service is exceptional always making sure I knew what was going on and answering all my questions.” — Alex B., Google

“Unable to delete my account or change contact info. Also, the ridiculous APRs! I can get better rates anywhere and everywhere else.” — Duh, Trustpilot

6. Flagstar Bank (NMLS# 417490)

Best for: Borrowers looking for a high credit limit

Maximum CLTV: 85%

Amount: $10,000 to $1 million

Minimum draw: 50% for HELOCs over $50,000. Full amount for HELOCs under $50,000.

Draw period: 10 years

Repayment period: 20 years

Fees: Annual fee ($75). Fees vary by state. Flagstar will pay closing costs so long as the account is kept open for at least 36 months.

Special features: 4.99% APR for first six months. 0.25% discount for automatic payments from a Flagstar account.

Flagstar Bank’s maximum HELOC limit of $1 million makes it a good choice for borrowers who have substantial equity in their homes and are looking for an especially large line of credit. On top of the high limit, Flagstar offers a special promotional rate of 4.99% APR for the first six months.[6]

However, there are some significant drawbacks to be aware of. Flagstar’s minimum draw requirements of 50% for lines of credit over $50,000 and for the full amount for lines of credit under $50,000 means you’ll be paying interest on a large principal right away. Also, it comes up short in terms of customer service and ranks below average in J.D. Power’s 2025 U.S. Retail Banking Satisfaction Study.[7]

What customers say

“I use this Flagstar Bank all the time, I can't say enough awesome things about them the management team and staff are fantastic.” — Cheryl M., Google

“Slowest bank ever, it takes forever when you need something from them.” — Marianne N., BBB

Understanding how HELOCs work

Are HELOCs right for you?

HELOCs tend to be a good choice for ongoing projects where you’ll be withdrawing relatively limited amounts at a time, such as ongoing home renovations or for education. While some HELOCs with high limits can be good for large one-time purchases, you may want to consider lump sum loans instead, such as a home equity loan or a home improvement loan.

Also, be aware that HELOCs typically offer variable rates. While these rates may be lower than fixed-rate loans, they can also fluctuate. If you want stability, alternatives like a fixed-rate home equity loan may make more sense.

Finally, while HELOCs are flexible with what they can be used for, some impose limits, such as limits against down payments on investment properties. 

HELOC vs. mortgages: Key differences

On the surface, HELOCs and mortgages appear similar because they both use your home as collateral. That means that if you default on either one, you risk losing your home through foreclosure.

However, HELOCs differ substantially from mortgages, including second mortgages, in how you access and pay for your credit. Whereas a mortgage is repaid through fixed sums, usually every month, a HELOC is a form of revolving credit, similar to a credit card. This means that you access your HELOC funds as needed and only pay interest on the withdrawn amounts.

HELOCs also tend to require a less intensive application process than mortgages. Application processes take less than a month in many cases and an appraisal may be required, especially for large credit limits.

Methodology: How we ranked each HELOC lender

We ranked each HELOC lender using a comprehensive rubric. We used the following questions to get an overall view of each lender’s competitiveness and value:

1. HELOC rates: How does the lender’s current interest rates and promotional periods compare to the competition?
2. HELOC fees: Does the lender charge origination, annual, early closure, and other fees?
3. Draw periods: Does the draw period differ from the industry standard of approximately 10 years?
4. Repayment terms: Does the lender provide at least 20 years for repayment and how flexible are the repayment terms?
5. Customer service: Is customer service easy to reach and how effective is the lender in resolving issues?
6. Digital tools: Does the lender offer online tools or an app and how user-friendly are they?
7. Qualifying requirements: Are credit score, CLTV, and other requirements better than industry norms?

Maximum CLTV and draw and repayment terms are primarily sourced directly from lender websites. If such information wasn’t available, we used research published by NerdWallet, U.S. News & World Report, and CNBC.

For information concerning customer service and lender reputation, we relied on reviews from Trustpilot, the Better Business Bureau (BBB), and Google Review