Best HELOC Lenders in Sacramento, CA (2026)

Sacramento emerged as one of the great pandemic-era beneficiaries — as San Francisco Bay Area residents fled high costs, the state capital absorbed an enormous wave of buyers who drove values up dramatically. The median home value in the Sacramento metro now sits near $490,000, roughly double its pre-pandemic level in many neighborhoods.

That appreciation has created meaningful equity for Sacramento homeowners. California's favorable HELOC environment (no state-specific restrictions on home equity lending) and a rich local lending ecosystem make Sacramento a strong market for HELOC borrowers in 2026.

HELOC Rates in Sacramento (February 2026)

Lender Type	APR Range	Max CLTV
Credit unions	7.00% – 8.25%	Up to 90%
Regional banks	7.50% – 9.00%	Up to 85%
National banks	7.75% – 9.50%	Up to 85%
Online lenders	7.25% – 10.99%	Up to 95%

California follows federal HELOC guidelines without additional state restrictions that meaningfully limit borrowing. Rates track the prime rate (8.50% as of February 2026) plus lender margin. Sacramento's rates are generally in line with California averages — lower than the Bay Area premium market, but comparable to Southern California suburban markets.

Best HELOC Lenders in Sacramento

1. Golden 1 Credit Union ⭐ Best Overall

Golden 1 Credit Union is California's largest state-chartered credit union and one of the largest in the country. Sacramento-based and Sacramento-proud, Golden 1 consistently offers some of the most competitive HELOC rates in Northern California.

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 $0–$600 (Golden 1 absorbs most fees)
Annual fee: None
Membership: Open to anyone who lives or works in California
Best for: Sacramento homeowners who want the best rates from a locally headquartered institution

Golden 1's Sacramento headquarters means local underwriting teams who genuinely understand the region's neighborhood dynamics — from Midtown to Elk Grove to Folsom.

2. SAFE Credit Union ⭐ Best Rates (Runner-Up)

SAFE Credit Union (originally serving Sacramento Area Federal Employees) is now open to anyone who lives, works, or worships in Sacramento County — and offers outstanding HELOC terms.

Rates: Prime minus 0.75% to prime minus 1.25% for qualifying members
Draw period: 10 years
Max CLTV: 90%
Low closing costs
No annual fee
Best for: Sacramento homeowners who want a second rate quote alongside Golden 1 — SAFE often matches or beats them

3. SchoolsFirst Federal Credit Union ⭐ Best for Educators

Sacramento has an enormous population of teachers, administrators, and school district employees. SchoolsFirst FCU serves this community with outstanding financial products.

Rates: As low as 7.25% APR for qualifying members
Draw period: 10 years
Max CLTV: 90%
Membership: California school employees and their families
Best for: Sacramento-area teachers, school staff, and their families

4. River City Bank ⭐ Best Community Bank

River City Bank is a Sacramento-headquartered community bank serving Northern California's business and professional community. Its HELOC underwriting is flexible and locally informed.

Rates: 7.75% – 8.75% APR
Draw period: 10 years
Manual underwriting available
Strong understanding of Sacramento's government and agriculture economy
Best for: Self-employed Sacramentans, government contractors, and those with complex income

5. Tri Counties Bank ⭐ Best for Northern California Properties

For Sacramento homeowners with properties in surrounding rural or agricultural areas (Yolo County, Placer County, El Dorado County), Tri Counties Bank offers underwriting expertise that national banks lack.

Rates: 7.75% – 9.00% APR
Agricultural and rural property experience
Draw period: 10 years
Best for: Sacramento homeowners with non-standard property types or foothill/agricultural land

6. Wells Fargo ⭐ Best National Bank

Wells Fargo has significant Sacramento presence and competitive HELOC products for existing banking customers.

Rates: 7.99% – 9.25% APR
Relationship discount available
Draw period: 10 years
Max CLTV: 80% standard; up to 85% for qualified customers
Fixed-rate lock option
Best for: Existing Wells Fargo customers who want national bank reliability with Sacramento branches

7. Bank of America ⭐ Best for No-Cost HELOCs

Bank of America covers closing costs for qualified applicants — title, appraisal, and origination fees — making it one of the better national bank choices for fee-conscious Sacramento borrowers.

Rates: 7.99% – 9.25% APR
$0 closing costs for qualified applicants
Preferred Rewards discount: Up to 0.625% for eligible clients
Max CLTV: 85%
Best for: Existing BofA customers with $100,000+ in combined assets

8. Figure ⭐ Best Online Lender

Figure's all-digital HELOC platform is highly competitive in California and particularly appealing to Sacramento's tech-adjacent workforce.

Rates: 7.25% – 10.99% APR
Max CLTV: 95%
Closes in 5 business days
Origination fee: 0% – 4.99%
Non-revolving draw structure (important to understand)
Best for: Sacramento homeowners who want speed and comfort with a digital process

9. Spring EQ ⭐ Best for Large Equity Draws

Spring EQ specializes in home equity and offers fast approvals for larger credit lines — well-suited to Sacramento's appreciating market.

Rates: 7.50% – 10.99% APR
Max CLTV: 90%
Minimum credit score: 640
Best for: Sacramento homeowners with significant equity who need to access $150,000–$400,000 quickly

Sacramento-Specific HELOC Considerations

The Bay Area Refugee Effect

Sacramento's most significant market driver has been the influx of Bay Area transplants — people who sold $1.5M San Jose homes and bought $600,000 Sacramento properties with all-cash or large down payments. This group tends to have enormous equity and low mortgage balances, making them ideal HELOC candidates.

If you're in this category, you may qualify for an unusually large HELOC credit line relative to your monthly income, because your LTV ratio is excellent. Lenders appreciate this risk profile.

Sacramento Neighborhoods: Value Tiers

Sacramento's housing market has distinct tiers:

Midtown/East Sacramento/Land Park: Premium urban neighborhoods, strong appreciation
Elk Grove/Rancho Cordova: Suburban growth corridor, high value increases since 2019
Folsom/El Dorado Hills: Affluent Foothills communities, premium values
South Sacramento/Arden: More affordable, slower appreciation
Davis (Yolo County): University-driven market, stable premium values

Know your neighborhood's tier when estimating your HELOC credit line — and ask your lender about comp selection for your appraisal.

California Property Tax (Prop 13) Impact

California's Proposition 13 caps assessed value increases at 2% per year regardless of market appreciation. This means long-term Sacramento homeowners pay property taxes based on their original purchase price — often a fraction of current market value.

For HELOC purposes, this means lower property tax expenses in your DTI calculation, which can help you qualify more easily. A Sacramento homeowner paying $4,000/year in property taxes (on a home now worth $490,000 due to Prop 13 base) has significantly better DTI than a comparable homeowner in a state without this protection.

California's High State Tax Environment

California's top marginal income tax rate exceeds 13%, making HELOC interest deductibility (for qualifying home improvement uses) particularly valuable for high-income Sacramento borrowers. The deduction reduces the effective after-tax cost of your HELOC rate. Consult your tax advisor — see HELOC Tax Deduction.

The State Government Economy

Sacramento is California's capital, meaning a large percentage of homeowners are state government employees with stable incomes, defined-benefit pension plans, and excellent job security. This demographic profile is ideal for HELOC underwriting — stable income, predictable employment, and long tenure. Many Sacramento credit unions and banks have specific products or pricing for state workers.

Investment Properties in the Sacramento Metro

Sacramento's rental market is robust, driven by young professionals, state workers, and students at UC Davis and Sacramento State. Many homeowners use HELOC equity from their primary residence to fund rental property acquisitions. See DSCR Loans for investment financing structures that work well after the equity access step.

Calculating Your Sacramento HELOC Limit

Typical Sacramento calculation:

Home value: $490,000
Current mortgage balance: $270,000
Max CLTV (90%): $441,000
Available HELOC credit: $171,000

For a Folsom or El Dorado Hills home:

Home value: $700,000
Current mortgage: $350,000
Max CLTV (90%): $630,000
Available HELOC credit: $280,000

For a Bay Area transplant with large equity:

Home value: $600,000
Current mortgage: $100,000 (paid mostly cash)
Max CLTV (90%): $540,000
Available HELOC credit: $440,000

Qualifying for a Sacramento HELOC

Standard requirements:

Credit score: 680 minimum (740+ for Golden 1's best rates)
CLTV: ≤90%
DTI: ≤43%
Homeowner's insurance
2 years tax returns (self-employed) or pay stubs

California note: Many Sacramento homeowners have significant investment income, rental income, or business income. Lenders vary considerably in how they document and credit these income sources. Local credit unions and community banks tend to be more flexible than national bank algorithms.

Sacramento HELOC vs. Cash-Out Refinance

Sacramento homeowners who bought during 2019–2022 at 3%–5% mortgage rates should strongly consider a HELOC over cash-out refinancing. Replacing a 3.75% first mortgage with a 7.00%+ cash-out refi to access equity is rarely financially optimal.

A HELOC at 7%–8% on the incremental draw preserves your low first mortgage rate — the mathematically superior structure for most Sacramento homeowners.

See: HELOC vs. Cash-Out Refinance 2026

Top Uses for Sacramento HELOCs

Home renovations: Kitchen, primary bath, and ADU additions have strong ROI in Sacramento's active resale market
ADU construction: Sacramento's housing shortage and zoning reform make ADUs highly rentable
Investment property down payments: Sacramento rental demand is strong — pair with DSCR loans for rental investments
Bay Area transplant strategies: Using Sacramento equity to invest back in Bay Area or other markets
Debt consolidation: Replacing California-scale credit card balances with 7%–8% HELOC rate saves significantly

Steps to Get the Best HELOC Rate in Sacramento

Start with Golden 1 and SAFE Credit Union — get rate quotes from both before talking to any bank
Check your current appraised value — use Zillow, Redfin, or request a broker opinion; Sacramento values vary significantly by neighborhood
Calculate your CLTV — plug your numbers into the formula: (mortgage balance + desired HELOC) ÷ home value
Get at least one bank quote for comparison — Wells Fargo or BofA will compete with credit unions on fees if not always on rate
Ask about fixed-rate conversion — if you're drawing a large lump sum, ask whether you can lock it at a fixed rate

Frequently Asked Questions

Is Golden 1 the best HELOC in Sacramento? For most qualified borrowers, yes. SAFE Credit Union is a close second. Both are superior to national banks for most Sacramento homeowners.

Can I get a HELOC on a Sacramento investment property? Yes. Expect rates 1%–2% above primary residence rates and max CLTV of 70%–75%. River City Bank and Tri Counties Bank are most experienced with Sacramento investment property HELOCs.

How does Prop 13 affect my HELOC? It reduces your property tax expense, improving your DTI ratio. It does not directly affect your assessed value for HELOC purposes — lenders use current market value, not assessed tax value, to determine your credit line.

What if my Sacramento home was bought all-cash? You can still get a HELOC (not a refinance, as there's no existing mortgage). The HELOC will be in first-lien position. Golden 1 and SAFE both offer first-lien HELOCs for paid-off Sacramento homes.

Best HELOC Lenders in Sacramento, CA (2026): Rates, Fees & Local Picks

Key Takeaways