Best HELOC Lenders in 2026: Compare Rates and Draw Periods

A HELOC (Home Equity Line of Credit) lets you borrow against your home's equity with a revolving credit line. You draw what you need, pay interest only on what you use, and can tap it repeatedly during the draw period.

HELOCs are ideal for home improvements, debt consolidation, or keeping cash available for investment opportunities. Here are the 10 best HELOC lenders in 2026, based on rates, fees, and flexibility.

What is a HELOC?

A HELOC works like a credit card secured by your home. You're approved for a maximum credit line (usually 80-90% of your home's value minus your mortgage balance), and you can borrow and repay repeatedly during the draw period—typically 10 years.

After the draw period, you enter the repayment period (usually 20 years), where you can no longer borrow and must pay down the balance.

Top 10 HELOC Lenders for 2026

1. Figure

Best for: Fast funding and fixed-rate options

Figure is fully digital and can fund a HELOC in as little as 5 days. They also offer a fixed-rate HELOC, which is rare.

• Rates: 7.50% - 13.99% APR (variable)
• Fixed-rate option: Yes, lock in any time
• Credit limits: $15,000 - $400,000
• LTV: Up to 90%
• Draw period: 10 years
• Repayment period: 30 years
• Closing time: 5-7 days
• Fees: No closing costs for credit lines under $100k
• Credit score: 640 minimum

2. Connexus Credit Union

Best for: Lowest rates

Credit unions typically beat banks on HELOC rates, and Connexus consistently offers some of the lowest APRs available.

• Rates: 6.75% - 9.25% APR (variable)
• Credit limits: $25,000 - $250,000
• LTV: Up to 90%
• Membership: $5 deposit to join
• Draw period: 10 years
• Fees: $0 closing costs
• Credit score: 720+ for best rates
• Special feature: Rate discount for autopay

3. Navy Federal Credit Union

Best for: Military families

Navy Federal serves military members, veterans, and their families. Their HELOC terms are among the best in the industry.

• Rates: 6.50% - 9.00% APR (variable)
• Credit limits: $10,000 - $500,000
• LTV: Up to 90%
• Membership: Military affiliation required
• Draw period: 10 years
• Fees: $0 closing costs
• Credit score: 680 minimum
• Special feature: No appraisal for credit lines under $250k in some cases

4. TD Bank

Best for: Branch access and customer service

TD Bank has a large branch network and offers in-person support for HELOC applications. They also have flexible repayment options.

• Rates: 7.25% - 11.50% APR (variable)
• Credit limits: $25,000 - $500,000
• LTV: Up to 89.9%
• Draw period: 10 years
• Fees: $0 closing costs (must keep HELOC open 3 years or fees apply)
• Credit score: 680 minimum
• Special feature: Interest-only payments during draw period

5. Bethpage Federal Credit Union

Best for: Low fees in NY/NJ area

Bethpage is a regional credit union with excellent HELOC terms and no hidden fees.

• Rates: 6.99% - 9.50% APR (variable)
• Credit limits: $10,000 - $500,000
• LTV: Up to 90%
• Membership: Live/work in NY or join association
• Draw period: 10 years
• Fees: $0 closing costs, $0 annual fee
• Credit score: 700 minimum
• Special feature: No prepayment penalty

6. PenFed Credit Union

Best for: High credit limits

PenFed offers HELOC credit lines up to $600,000 and has competitive rates for borrowers with strong credit.

• Rates: 7.00% - 10.25% APR (variable)
• Credit limits: $25,000 - $600,000
• LTV: Up to 90%
• Membership: $5 to join
• Draw period: 10 years
• Fees: Appraisal fee only ($400-600)
• Credit score: 680 minimum
• Special feature: Exclusive discounts for members

7. Spring EQ (formerly Luxury Mortgage)

Best for: High-value homes and jumbo HELOCs

Spring EQ specializes in homes worth $1 million+ and can approve HELOCs up to $1 million.

• Rates: 7.50% - 11.00% APR (variable)
• Credit limits: $100,000 - $1,000,000
• LTV: Up to 90%
• Property value: $500k minimum
• Draw period: 10 years
• Fees: Varies by state
• Credit score: 700 minimum
• Special feature: Luxury home expertise

8. Flagstar Bank

Best for: Borrowers with lower credit scores

Flagstar is more lenient on credit scores and will work with borrowers down to 620 FICO.

• Rates: 8.00% - 12.50% APR (variable)
• Credit limits: $10,000 - $250,000
• LTV: Up to 85%
• Draw period: 10 years
• Fees: Closing costs may apply
• Credit score: 620 minimum
• Special feature: More flexible underwriting

9. Truist Bank (formerly SunTrust/BB&T)

Best for: Relationship banking discounts

Truist offers rate discounts if you have checking, savings, or investment accounts with them.

• Rates: 7.50% - 11.25% APR (variable)
• Credit limits: $10,000 - $500,000
• LTV: Up to 85%
• Draw period: 10 years
• Fees: $0 closing costs with 3-year commitment
• Credit score: 680 minimum
• Special feature: 0.25% rate discount with Truist checking account

10. Discover Home Loans

Best for: No closing costs

Discover offers a straightforward HELOC with no closing costs, no application fees, and no appraisal fees.

• Rates: 7.75% - 12.50% APR (variable)
• Credit limits: $35,000 - $300,000
• LTV: Up to 90%
• Draw period: 10 years
• Repayment period: 20 years
• Fees: $0 closing costs, $0 annual fee
• Credit score: 680 minimum
• Special feature: Cashback rewards on initial draw ($100-500)

How HELOC Rates Work

HELOC rates are typically variable and tied to the prime rate. As the Federal Reserve adjusts interest rates, your HELOC rate will move up or down.

Example:

• Prime rate: 7.50% (Feb 2026)
• Lender margin: +0.50%
• Your HELOC rate: 8.00% APR

If the Fed cuts rates by 0.50%, your rate drops to 7.50%.

Some lenders (like Figure) offer fixed-rate conversion options, letting you lock in a portion of your balance at a fixed rate.

HELOC vs. Home Equity Loan

How to Qualify for a HELOC

Minimum Requirements (Most Lenders):

• Credit score: 680+ (some go to 620-640)
• Home equity: 15-20% minimum (80-85% max LTV)
• Debt-to-income ratio: Below 43%
• Income verification: W-2s, pay stubs, or tax returns
• Property type: Primary residence (some allow investment properties)

How to Calculate Your Available Equity:

Step 1: Determine your home's current value (use Zillow, Redfin, or get an appraisal).

Step 2: Multiply by the lender's max LTV (usually 85-90%).

Step 3: Subtract your current mortgage balance.

Example:

• Home value: $500,000
• Max LTV: 85%
• Max loan amount: $425,000
• Mortgage balance: $300,000
• Available HELOC credit: $125,000

Fixed-Rate vs. Variable-Rate HELOCs

Variable-Rate (Most Common):

• Rate fluctuates with prime rate
• Lower initial rates
• Risk: Rates can increase
• Best for: Short-term borrowing or when rates are falling

Fixed-Rate (Rare):

• Lock in a fixed rate on all or part of your balance
• Higher initial rates
• Predictable payments
• Best for: Long-term borrowing or when rates are rising

Figure and some credit unions offer fixed-rate conversion options.

HELOC Fees to Watch For

1. Closing costs: $0 to $5,000 (many lenders waive this in 2026)
2. Annual fee: $0 to $100/year
3. Inactivity fee: $50-100 if you don't use the line
4. Early closure fee: $200-500 if you close within 3 years
5. Appraisal fee: $400-600 (sometimes waived)

Best Uses for a HELOC

Good Reasons:

• Home renovations (increase property value)
• Debt consolidation (if HELOC rate < credit card rate)
• Emergency fund backup
• Real estate investment down payments
• Education expenses

Bad Reasons:

• Funding a lifestyle you can't afford
• Speculation or gambling
• Vacations or depreciating assets
• Paying for consumables

Remember: Your home is the collateral. If you can't repay, you risk foreclosure.

HELOC Repayment Strategies

During Draw Period (Years 1-10):

• Interest-only payments: Minimum required, but balance doesn't decrease
• Principal + interest: Pay down the balance while you can still draw

During Repayment Period (Years 11-30):

• Fixed payments: Can no longer borrow; must pay down balance
• Payoff early: No prepayment penalties with most lenders

Pro tip: If you're using a HELOC for a one-time project, pay it down during the draw period to avoid payment shock when repayment starts.

How to Apply for a HELOC

1. Check your credit score (680+ gets you the best rates)
2. Calculate your available equity (use formula above)
3. Shop at least 3 lenders (rates vary by 1-2%)
4. Gather documents: Pay stubs, tax returns, mortgage statement
5. Get an appraisal (lender will order, you may pay $400-600)
6. Close and access funds (5-30 days depending on lender)

Tax Deductibility

HELOC interest is tax-deductible if you use the funds to "buy, build, or substantially improve" the home securing the loan. It's NOT deductible for debt consolidation, car purchases, or vacations.

Consult a CPA for your specific situation.

Final Thoughts

The best HELOC lender depends on what you value most:

• Lowest rates: Connexus or Navy Federal
• Fastest funding: Figure
• High credit limits: Spring EQ or PenFed
• No fees: Discover or Bethpage

Before opening a HELOC, make sure you have a plan to use it responsibly. The flexibility is powerful, but borrowing against your home carries risk. Use it for value-generating expenses, not lifestyle inflation.

If rates are high, consider waiting or using a fixed-rate home equity loan instead. If you need flexibility and can manage variable rates, a HELOC is one of the best financial tools available.

Related Articles

• HELOC Repayment Strategies: 7 Smart Ways to Pay Off Your Home Equity Line
• Home Equity Explained: What It Is and How to Build It
• What Is a HELOC? Home Equity Line of Credit Explained