How we evaluated HELOC lenders
Advertised rates tell you almost nothing about which lender is actually best for your situation. We evaluated lenders across six criteria that directly affect your total cost, access to funds, and approval odds — not just the headline rate.
Interest rate / margin
Prime rate margin, not just the teaser rate. The margin you pay above prime is permanent for the life of the HELOC — it determines every future payment.
Closing costs
$0 at most online lenders vs $1,500–$3,500 at banks. For shorter payoff periods, closing costs matter more than the rate.
Minimum credit score
Who can actually qualify. A lender with a 640 minimum serves borrowers that an 680-minimum lender can’t.
Maximum CLTV
How much of your equity you can access. 95% CLTV (Navy Federal) vs 80% (some banks) can mean $50,000+ more available credit.
Speed to close
5 business days (Figure) vs 6 weeks (traditional bank). Matters when you need funds quickly for a renovation or opportunity.
Rate caps & draw access
Maximum rate you can ever pay + how you access draws (debit card, check, ACH). Practical usability matters alongside the rate.
Rates change frequently — use these as comparison frameworks HELOC rates move with the Federal Reserve prime rate. The specific margins shown below reflect 2026 averages. Before applying, get live quotes from at least 3 lenders and use the APR calculator to compare true all-in cost. These profiles are accurate as of May 2026.
Best HELOC lenders at a glance — our top picks
Based on our evaluation across all six criteria, here are our top recommendations before diving into each lender in detail.
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Figure
Best overall — Online lender
RatePrime + 0.50%–3.50%
Closing cost$0
Min credit660
Speed5 business days
Best forSpeed + $0 cost
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PenFed CU
Best rate — Credit union
RatePrime + 0.00%–1.99%
Closing cost$0 for members
Min credit650
Speed14–21 days
Best forLowest margin
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Navy Federal CU
Best for military
RatePrime + 0.25%–2.00%
Closing cost$0
Min credit640
CLTV95% (highest)
Best forMilitary / veterans
Best online HELOC lenders — lowest cost, fastest closing
Online lenders have fundamentally disrupted the HELOC market by eliminating the appraisal, title search, and origination fees that banks charge. They use AVM appraisals (instant, free) and digital-only underwriting, passing the savings to borrowers. If speed or zero upfront cost is your priority, start here.
Figure
Online Lender
Rate (prime+)
0.50%–3.50%
Closing cost
$0
Min credit / CLTV
660 • 85%
Speed & draw access
5 business days — fastest in marketACH transfer & online account access
Rate details
ACH transfer & online account accessBest for: Borrowers wanting the fastest close with zero upfront cost. Fully digital process, AVM appraisal, no title search. Excellent for renovation draw access.
Watch: Slightly higher margins than credit unions at best-credit tiers. Check final quoted rate vs PenFed before deciding.
Spring EQ
Online Lender
Rate (prime+)
1.25%–5.00%
Closing cost
$0–$500
Min credit / CLTV
640 • 90%
Speed & draw access
7–14 daysACH transfer, check
Rate details
ACH transfer, checkBest for: Borrowers needing maximum CLTV (90%) or slightly lower credit scores (640–659). Highest LTV available from a national non-military lender.
Watch: Higher margin at lower credit scores (640–660 range). Compare rate carefully at your specific score.
Bethpage Federal CU
Online Credit Union
Rate (prime+)
0.25% intro (then adjusts)
Closing cost
$0
Min credit / CLTV
670 • 80%
Speed & draw access
7–14 daysOnline transfer, ACH
Rate details
Online transfer, ACHBest for: Competitive introductory rate with online convenience. Good for borrowers who want credit union structure with digital speed.
Watch: Introductory rate period — always ask: what is the rate after the intro period and what is the lifetime cap?
The online lender advantage at a glance Every online lender above charges $0 or near-$0 at closing. They use AVM appraisals (instant, no appraiser visit) and skip the title search. For short payoff periods (under 3–5 years), the $2,000–$3,500 closing cost savings at an online lender may exceed the rate savings at a bank or credit union.
Best credit union HELOC lenders — lowest rates, most flexible
Credit unions consistently offer the lowest HELOC margins nationally. They’re member-owned nonprofits, meaning profits return to members as lower rates and reduced fees. Most are now open to any applicant with a simple one-time membership fee.
PenFed Credit Union
Credit Union — Open to All
Rate (prime+)
0.00%–1.99%
Closing cost
$0 for members
Min credit / CLTV
650 • 85%
Speed to close
14–21 days — slightly slower than onlineMembership
Open to everyone for a $5 one-time savings deposit. No military requirement. Online application available.Best for: Best overall rate + low cost combination for 700+ credit. Prime + 0.00% for best-qualified members is the lowest margin nationally available.
Watch: Processing slower than online lenders. Check state availability and confirm $0 closing cost terms before applying.
Navy Federal Credit Union
Credit Union — Military
Rate (prime+)
0.25%–2.00%
Closing cost
$0
Min credit / CLTV
640 • 95%
Speed to close
14–21 daysMembership
Military, veterans, DoD civilian, and family members only. If you qualify, membership is free.Best for: Military community — 95% CLTV is the highest in the market. Unmatched terms for qualifying members. Best for borrowers with limited equity.
Watch: Membership restricted to military/family. If you don't qualify, PenFed is the next best credit union option.
Why credit unions dominate on rate Credit unions are member-owned nonprofits. They don’t pay shareholders — they return earnings to members as lower rates and fewer fees. PenFed’s prime + 0.00% margin means their members pay the base prime rate with no additional profit margin. No bank can match this structure.
Check your HELOC eligibility before applying to any lenderConfirm your CLTV, credit score range, and DTI qualify before a hard credit inquiry with any lender.
Check EligibilityBest bank HELOC lenders — highest limits, relationship discounts
Banks offer the highest credit limits (up to $750,000 at US Bank) and often provide significant rate discounts for existing customers. The trade-off is higher closing costs and a slower process. If you need a very large HELOC or already have a mortgage/significant deposits at a bank, start here.
US Bank
National Bank
Rate (prime+)
0.25%–3.00% (relationship discount available)
Closing cost
$0–$750
Min credit / CLTV
680 • 85%
Speed to close
4–6 weeks full appraisal requiredMembership
Existing US Bank customers receive rate and fee discounts. Relationship pricing with checking + mortgage.Best for: Large HELOCs ($300,000–$750,000). Existing US Bank customers qualify for the best pricing. Highest limit available from a national bank.
Watch: Slower process; full appraisal required. Closing costs can reach $750 even with relationship discounts.
Bank of America
National Bank — Preferred Rewards
Rate (prime+)
0.50%–2.50% (Preferred Rewards discount)
Closing cost
$0 (Preferred Rewards customers)
Min credit / CLTV
680 • 85%
Speed to close
3–5 weeksMembership
Preferred Rewards members (with $20K+ in BofA accounts) receive rate and closing cost benefits. Open to all customers.Best for: Existing BofA customers with Preferred Rewards status. $0 closing costs only available to qualifying relationship customers.
Watch: Best rates and $0 cost only for relationship customers. Without Preferred Rewards, terms are less competitive vs credit unions.
Wells Fargo
National Bank
Rate (prime+)
Competitive (relationship pricing)
Closing cost
$0–$2,500
Min credit / CLTV
680 • 80%
Speed to close
4–6 weeksMembership
Existing mortgage or banking customers receive relationship discounts.Best for: Existing Wells Fargo mortgage customers. Relationship discounts can narrow the gap with credit union rates.
Watch: Lower max CLTV (80%) than other banks and credit unions. Closing costs up to $2,500 for non-relationship customers.
Chase
National Bank
Rate (prime+)
Variable margin
Closing cost
$50/yr annual fee
Min credit / CLTV
680 • 80%
Speed to close
4–6 weeksMembership
Chase Private Client and existing mortgage customers receive best pricing.Best for: Existing Chase customers with significant deposit relationship.
Watch: $50 annual fee applies. Not available in all states. Lower CLTV (80%) limits borrowing vs competitors.
The bank relationship discount reality “Bank relationship discounts are real but require you to already be a significant customer — existing mortgage, meaningful deposit balances, or premium account status. If you’re not already a meaningful relationship customer, banks almost never beat credit union rates. The relationship discount closes a gap; it rarely eliminates one.”
HELOC lender comparison — all lenders side by side
Every lender we reviewed, in a single table. Sort by the criteria most important to your situation.
| Lender | Type | Rate (prime+) | Closing cost | Min credit | Max CLTV | Speed |
|---|---|---|---|---|---|---|
| PenFed CU | Credit union | 0.00%–1.99% | $0 | 650 | 85% | 14–21 days |
| Navy Federal CU | Credit union | 0.25%–2.00% | $0 | 640 | 95% | 14–21 days |
| Figure | Online | 0.50%–3.50% | $0 | 660 | 85% | 5 days |
| Spring EQ | Online | 1.25%–5.00% | $0–$500 | 640 | 90% | 7–14 days |
| Bethpage FCU | Online CU | 0.25% intro | $0 | 670 | 80% | 7–14 days |
| US Bank | Bank | 0.25%–3.00% | $0–$750 | 680 | 85% | 4–6 wks |
| Bank of America | Bank | 0.50%–2.50% | $0* | 680 | 85% | 3–5 wks |
| Wells Fargo | Bank | Competitive | $0–$2,500 | 680 | 80% | 4–6 wks |
| Chase | Bank | Variable | $50/yr | 680 | 80% | 4–6 wks |
| Local credit union | Credit union | 0.50%–2.50% | $0–$800 | 620–650 | 80–85% | 14–21 days |
*BofA $0 closing costs available to Preferred Rewards members only • Navy Federal restricted to military/veterans/family • Bethpage intro rate applies for initial period only
Best HELOC lender for your specific situation
The right lender depends on your credit score, equity position, speed needs, and existing banking relationships. Here’s our specific recommendation for each borrower profile.
Best overall rate
PenFed Credit Union
Prime + 0.00%–1.99% is consistently the lowest margin nationally. Open to everyone for a $5 one-time savings deposit. Apply here first if rate is your primary concern and you can wait 2–3 weeks.
Fastest closing
Figure
5 business days is the fastest in the market. Fully digital process, AVM appraisal, no title search. Use if you need funds quickly for a renovation start date or time-sensitive opportunity.
Lower credit (620–659)
Spring EQ (640+) or local credit union
Spring EQ minimum is 640; most local credit unions accept 620–650 with stronger equity. Be prepared for higher margins at lower credit tiers. Check your rate vs PenFed even at 650 — you may still qualify.
Military & veterans
Navy Federal Credit Union
Best terms in the market for qualifying members. 95% CLTV is unmatched anywhere. $0 closing costs. Competitive margins. If you or an immediate family member qualifies, Navy Federal is the clear choice.
Large HELOC ($250K+)
US Bank
$750,000 maximum limit, relationship pricing, full underwriting provides security for large amounts. Existing US Bank mortgage customers get the best terms. For $300K+ HELOCs, also check Bank of America Preferred Rewards.
Maximum CLTV (limited equity)
Spring EQ (90%) or Navy Federal (95%)
If your equity is limited and you need to maximize borrowing, Spring EQ reaches 90% CLTV nationally. Navy Federal reaches 95% for military members. Compare at your specific CLTV before choosing.
Existing bank customer
Match your primary bank
Bank of America (Preferred Rewards), Wells Fargo (existing mortgage), Chase (Private Client) all offer relationship discounts that can close the gap with credit union rates. Always get a PenFed quote first to use as your comparison baseline.
Get your eligibility and max amount before shopping lendersKnow your CLTV, estimated qualifying credit limit, and whether you meet the criteria — before any lender runs a hard inquiry.
Check EligibilityHELOC lender red flags — what to watch for
Not all lenders are equal in transparency. These are the six most common traps in HELOC offers — all of which can cost significantly more than the advertised rate suggests.
1
Introductory “teaser” rates
Some lenders advertise extremely low rates (prime + 0% or even below prime) that apply for only 6–12 months before reverting to a much higher margin. Always ask: “What is the rate after the introductory period ends?” Bethpage FCU’s intro rate is legitimate; some smaller lenders use this deceptively.
2
Early closure clawback provision
Many lenders waive closing costs but include a clawback clause: if you close the HELOC within 2–3 years, you reimburse the waived fees. Always read: “What happens if I close within 24 months?” If the answer is “you owe us $1,500,” you need to factor that into the total cost.
3
Annual fees buried in the terms
Most competitive lenders charge $0 annual fee. Some charge $50–$100/year. On a 10-year draw period, $100/year = $1,000 in additional cost. Ask specifically: “Is there an annual fee to keep the HELOC open?” Do not rely on the loan estimate alone — it only shows fees at origination.
4
Draw minimums that restrict flexibility
Some lenders require minimum draw amounts ($10,000–$25,000) at opening or at each subsequent draw. This eliminates the staged-draw savings advantage for smaller renovation phases. Ask: “What is the minimum draw amount, both at opening and for subsequent draws?”
5
Geographic availability (check before applying)
Figure operates in ~40 states. Spring EQ has state limitations. Bethpage FCU has geographic restrictions. Always confirm the lender operates in your state before starting an application — a hard inquiry that results in “we don’t serve your state” wastes your inquiry.
6
Rate caps (or their absence)
Most HELOCs have lifetime rate caps (typically prime + 6–8%, meaning your all-in rate can never exceed roughly 14–17% at current prime). Some lenders have lower caps; others have none in certain states. Ask: “What is my lifetime rate cap?” This is the maximum rate you could ever pay regardless of Fed increases.
Always get a Loan Estimate (LE) before committing Federal law requires lenders to provide a standardized Loan Estimate within 3 business days of application. The LE lists every fee in standardized format. If a lender is evasive about providing one or wants a commitment before sharing the LE, that is itself a major red flag.
How to shop for a HELOC — getting the best rate in 5 steps
1
Check your eligibility first — before any lender does
Run the eligibility calculator to confirm your CLTV, credit score range, DTI, and estimated borrowing amount. This prevents unnecessary hard inquiries with lenders you won’t qualify for. Know your numbers before any lender sees them.
2
Get quotes from 3 lender types simultaneously
One online lender (Figure or Spring EQ) — your $0-cost baseline. One credit union (PenFed, or Navy Federal if you qualify) — your lowest-rate baseline. One bank (your primary bank) — your relationship pricing baseline. All three simultaneously.
3
Apply within a 14–30 day window — one inquiry
Multiple mortgage-related applications within 14–30 days count as a single inquiry for FICO scoring purposes. Apply to all target lenders in the same window. Never apply to one, wait for the result, then apply to another — that creates multiple inquiries.
4
Compare on APR — not just the advertised rate
Use the APR calculator to convert rate + closing costs + annual fees into one comparable number. A $0-closing online lender at prime + 1.50% may cost less total than a bank at prime + 0.75% with $2,000 in closing costs, depending on your payoff timeline. APR is the honest number.
5
Ask the 6 questions before signing anything
Ask every lender: (1) Is this an introductory rate — what’s the rate after? (2) Is there an early closure fee? (3) What is the annual fee? (4) What is the minimum draw amount? (5) Do you serve my state? (6) What is my lifetime rate cap? These 6 questions surface 95% of hidden cost issues.
Key takeaways — best HELOC lenders 2026
Everything you need to remember
Best overall (speed + $0 cost): Figure — 5-day close, $0 closing, 660+ credit. Best for renovation borrowers needing funds quickly with no upfront cost
Best overall (lowest rate): PenFed Credit Union — prime + 0.00%–1.99%, open to everyone for $5. Apply here first if rate is your primary concern
Best for military: Navy Federal CU — 95% CLTV (unmatched), $0 closing, prime + 0.25%–2.00%. If you or family qualify, this is the clear choice
Best for large HELOCs ($250K+): US Bank — $750,000 limit, relationship pricing, full underwriting. Bank of America Preferred Rewards also strong for large amounts
Best for lower credit (640–659): Spring EQ (640 min) or local credit unions (sometimes 620). Expect higher margins at lower credit tiers
Always compare 3 types: online lender + credit union + your primary bank. The winner is almost always revealed by live quotes, not assumptions
Apply in a 14–30 day window — multiple applications count as one credit inquiry. Never wait for one rejection before applying to the next
Ask 6 questions at every lender: intro rate duration, early closure fee, annual fee, draw minimum, state availability, lifetime rate cap