Best HELOC Lenders in Phoenix, AZ (2026)

Phoenix's growth story is extraordinary. The Valley of the Sun absorbed millions of new residents over the past decade, driving home values to levels that would have seemed unimaginable in 2010. Even after the 2022–2023 cooling period, the median home value in the Phoenix metro sits near $430,000 — and homeowners who bought before 2021 hold substantial equity.

Arizona's competitive banking environment features strong local credit unions, regional lenders with genuine Southwest expertise, and every major national bank. Combined with a favorable tax environment (no estate tax, reasonable income taxes) and no major state-level HELOC restrictions, Phoenix is one of the better markets in the country for home equity borrowing.

HELOC Rates in Phoenix (February 2026)

Arizona follows federal HELOC guidelines. There are no state-specific restrictions that limit borrowing (unlike Texas). Rates track the prime rate (8.50% as of February 2026) plus your lender's margin.

Best HELOC Lenders in Phoenix

1. Desert Financial Credit Union ⭐ Best Overall

Desert Financial is Arizona's largest locally-owned credit union, with over 380,000 members and a best-in-class HELOC product for the Valley.

• Rates: As low as 7.00% APR for members with 740+ credit (prime minus 1.50%)
• Draw period: 10 years
• Repayment period: 15 years
• Max CLTV: 90%
• Credit line: Up to $500,000
• Closing costs: Typically under $500 (Desert Financial absorbs most fees)
• No annual fee
• Membership: Open to anyone who lives, works, worships, or attends school in Maricopa County
• Best for: Phoenix homeowners with strong credit who want the lowest rate in the Valley

2. Arizona Federal Credit Union ⭐ Best Rates for Lower Credit Scores

Arizona Federal Credit Union has competitive HELOC products and is known for working with members across a wider credit spectrum than many competitors.

• Rates: 7.25% – 8.50% APR
• Minimum credit score: 640 (lower than many lenders)
• Draw period: 10 years
• Max CLTV: 85%
• Best for: Phoenix homeowners with credit scores in the 640–720 range who still want credit union pricing

3. Credit Union West ⭐ Best for No Fees

Credit Union West operates throughout the Valley and offers a clean HELOC with minimal fees — no origination fee, no annual fee, and no [prepayment penalty](/blog/dscr-loan-prepayment-penalty).

• Rates: Prime minus 0.75% to prime minus 1.00%
• No origination fee
• No annual fee
• No prepayment penalty
• Max CLTV: 85%
• Best for: Fee-sensitive Phoenix homeowners who want to minimize total cost of borrowing

4. Western Alliance Bank ⭐ Best Regional Bank

Western Alliance is a Phoenix-based regional bank that has grown substantially and maintains strong Arizona HELOC lending capacity.

• Rates: 7.75% – 9.00% APR
• Draw period: 10 years
• Manual underwriting available
• Strong small business relationships
• Best for: Phoenix business owners, self-employed borrowers, and investors who benefit from human underwriting

5. National Bank of Arizona ⭐ Best Community Bank

National Bank of Arizona (NBofAZ) is a locally-rooted institution with strong Phoenix underwriting expertise and relationship-focused banking.

• Rates: 7.75% – 8.75% APR
• Relationship pricing
• Draw period: 10 years
• Best for: Established Phoenix homeowners who want a community bank relationship and local decision-making

6. Chase ⭐ Best National Bank

Chase has significant Phoenix presence and competitive HELOC products for its banking customers.

• Rates: 8.14% – 9.50% APR
• Relationship discount: 0.25% for existing Chase customers
• Draw period: 10 years
• Max CLTV: 80% standard; up to 85% for qualified customers
• Annual fee: $50 (waived in some cases)
• Best for: Chase banking customers who want a national brand with Phoenix branches

7. Figure ⭐ Best Online Lender

Figure's fast digital HELOC is a strong option for Phoenix homeowners who don't want to deal with branch visits and prefer a digital experience.

• Rates: 7.25% – 10.99% APR
• Max CLTV: 95%
• Closes in 5 business days
• Origination fee: 0% – 4.99%
• Non-revolving draw structure
• Best for: Phoenix borrowers who need speed and are comfortable with a full-draw product

8. Discover Home Loans ⭐ Best No-Closing-Cost Option

Discover offers a no-closing-cost HELOC with zero origination fees, no appraisal costs, and no annual fee — making it attractive for cost-conscious Phoenix borrowers.

• Rates: 7.99% – 9.99% APR
• $0 closing costs
• Draw period: 10 years
• Max CLTV: 90%
• Minimum credit score: 620
• Best for: Phoenix homeowners who want to minimize upfront costs and don't need the absolute lowest rate

Phoenix-Specific HELOC Considerations

The HOA Factor

Phoenix metro is HOA country. Scottsdale, Chandler, Gilbert, and Tempe are full of HOA-governed communities. This generally doesn't affect [HELOC underwriting](/blog/heloc-application-mistakes) for single-family homes, but be aware that some HOA CC&Rs may restrict certain uses of HELOC funds (like construction modifications). Check your HOA documents.

Maricopa County Property Values

Maricopa County home values vary dramatically — from $300,000 starter homes in Laveen and Surprise to $1,000,000+ properties in Paradise Valley and north Scottsdale. Lenders who know the Valley understand these neighborhoods; national algorithms may undervalue or overvalue specific submarkets.

If your appraisal comes in lower than expected, provide your lender with specific comparable sales from your neighborhood. Phoenix's micro-market variation means broad metro averages can be misleading.

Investment Property Concentration

Phoenix has attracted enormous investor activity — many homeowners also own rental properties. HELOC funds drawn from a primary residence can fund investment property down payments, creating a DSCR loan (see DSCR Loans in Phoenix). This is a popular Valley investment strategy.

Summer Maintenance and Renovation Costs

Arizona's extreme heat drives unique home maintenance costs — AC system replacement, pool resurfacing, sun damage to roofing and exterior paint. Many Phoenix homeowners use HELOCs specifically for these climate-driven repairs. These are legitimate uses and generally preserve or improve home value.

The Short-Term Rental Market

Phoenix/Scottsdale is a major STR destination — Super Bowl, spring training, golf tournaments, and warm winter climate drive year-round demand. Many Valley homeowners use HELOC equity to purchase STR-optimized investment properties.

Calculating Your Phoenix HELOC Limit

Standard calculation:

• Home value: $430,000
• Current mortgage balance: $250,000
• Max CLTV (90%): $387,000
• Available HELOC credit: $137,000

For a Scottsdale property:

• Home value: $750,000
• Current mortgage: $400,000
• Max CLTV (90%): $675,000
• Available HELOC credit: $275,000

Qualifying for a Phoenix HELOC

Standard requirements:

• Credit score: 680 minimum (740+ for Desert Financial's best rates)
• CLTV: ≤90%
• DTI: ≤43%
• 2 years tax returns or W-2s
• Homeowner's insurance (flood insurance not typically required in Phoenix proper)

Arizona-specific note: Arizona's homestead exemption protects $250,000 of equity from most creditors — but HELOC lenders have a direct lien on the property, so this doesn't affect their security position.

Phoenix HELOC vs. [Cash-Out Refinance](/blog/cash-out-refinance-guide)

Phoenix homeowners who locked in 3%–5% mortgages during 2020–2022 should strongly preserve those rates. A HELOC in the 7%–8% range on a second-lien basis is far more cost-effective than replacing a low-rate first mortgage with a 7.25% cash-out refi.

See: HELOC vs. Cash-Out Refinance 2026

Top HELOC Uses in Phoenix

• Pool installation: In Phoenix's heat, a pool is both a lifestyle and resale value investment
• AC and HVAC upgrades: Energy-efficient systems are essential in Arizona
• Investment property down payments: See DSCR Loans in Phoenix
• Kitchen and bath renovations: High ROI in Phoenix's active resale market
• Debt consolidation: Rolling 20%+ credit card debt into an 8% HELOC saves real money

Frequently Asked Questions

What's the best credit union for HELOCs in Phoenix? Desert Financial Credit Union offers the most competitive rates for qualified members (740+ credit, 80%+ LTV position). Arizona Federal is more accessible for borrowers with 640–720 credit scores.

Can I get a HELOC on my [Phoenix investment property](/blog/dscr-loans-phoenix)? Yes. Expect rates 1%–2% higher than primary residence rates and max CLTV around 70%–75%. Western Alliance and National Bank of Arizona are experienced with Arizona investment property HELOCs.

Does the Phoenix market have seasonal appraisal issues? Phoenix sees more buyer activity in fall and winter (snowbirds), which can affect comparable sales data. If you're closing in summer, ensure your appraisal uses comps from the most recent market period.

Related Articles

• HELOC Rates in Phoenix, AZ (2026)
• [[Arizona HELOC Guide](/blog/arizona-heloc-guide)](/blog/arizona-heloc-guide)
• DSCR Loans in Phoenix
• HELOC vs. Cash-Out Refinance 2026
• [[HELOC for Pool](/blog/heloc-for-pool-installation) Installation](/blog/heloc-for-pool-installation)
• [[Best HELOC Rates 2026](/blog/best-heloc-rates-2026)](/blog/best-heloc-rates-2026)
• [[HELOC on Investment Property](/blog/heloc-for-investment-property)](/blog/heloc-on-investment-property-guide)