California HELOC Rates & Lenders: The Complete Guide for Golden State Homeowners

California homeowners have more equity than just about anyone in the country. The median home price is approximately $780,000 statewide — and in the Bay Area, it's well above $1 million. Even in the more affordable Central Valley and Inland Empire, prices have risen enough that most homeowners who've been in their homes for a few years are sitting on six figures of accessible equity.

That makes California one of the most active HELOC markets in the nation. Here's everything you need to know.

California HELOC Market Overview

HELOC rates in California currently range from about 7.00% to 9.50% APR for qualified borrowers. California's massive market draws intense lender competition, which pushes rates toward the lower end of the national range — particularly for high-equity, high-credit-score borrowers.

Every major national bank operates here. So do dozens of regional banks, credit unions, and fintech lenders. That's great for borrowers: you have leverage to negotiate.

Variable rates tied to prime are standard, with margins as low as -1.00% for top-tier borrowers at some institutions. Fixed-rate conversion options are widely available. Some lenders offer introductory rates as low as 6.49% for the first 6–12 months.

Given California's high home values, HELOC lines here are often large — $200,000 to $500,000 is common, and some lenders offer lines up to $1 million or more. This means lender fees, which are sometimes percentage-based, can add up. Pay attention to closing costs and origination fees.

One important dynamic: California's Proposition 13 means many long-time homeowners have property assessed far below market value. Your low tax basis doesn't affect HELOC eligibility (lenders use current market value), but it's context for your overall financial picture.

HELOC Requirements in California

Equity Requirements

Most lenders allow 80–90% CLTV. Some go higher for high-credit borrowers — a few credit unions push to 95%, though rates increase significantly above 80%.

With California's high home values, the math gets interesting. A $900,000 Bay Area home with a $500,000 mortgage at 80% CLTV qualifies for up to $220,000 ($900,000 × 0.80 = $720,000 − $500,000 = $220,000). That's a substantial credit line.

In Southern California, a $750,000 home with $450,000 owed at 80% CLTV gets you up to $150,000.

Credit Score

• 740+: Best rates, typically 7.00%–7.75% APR
• 700–739: Competitive rates, roughly 7.75%–8.50% APR
• 660–699: Higher rates, approximately 8.50%–9.50% APR
• 620–659: Limited options, expect 9.50%+ APR

California's average credit score is around 720, above the national average. The state's tech and professional workforce tends to have strong credit profiles, which means lenders can be more competitive on rates.

Income and DTI

Maximum DTI of 43–50% is standard. California's high cost of living — especially housing — means DTI ratios can be tight even for high earners. If you're paying $3,500/month on your first mortgage plus property taxes and insurance, your housing costs alone might eat up 35% of your income before you add a HELOC payment.

Lenders account for this. In high-cost markets, some allow higher DTI ratios (up to 50% or slightly above) for borrowers with strong compensating factors like high credit scores, significant liquid assets, or low CLTV.

Self-employment is extremely common in California (tech contractors, gig economy, entertainment industry). You'll need two years of tax returns, and lenders will use your net self-employment income after deductions — not your gross revenue.

Property Types

California has every property type imaginable. Single-family homes qualify universally. Condos qualify with most lenders, though some HOA-heavy high-rises may require additional review. ADUs (accessory dwelling units) are booming in California — the presence of a permitted ADU can increase your home's appraised value and HELOC eligibility. Unpermitted additions, which are common in older LA neighborhoods, can complicate appraisals.

Multi-unit properties (2–4 units) qualify with most lenders at slightly higher rates and lower max CLTVs. Properties in wildfire-prone areas may face additional scrutiny — lenders will verify you have adequate insurance, which has become harder and more expensive to obtain in recent years.

Best HELOC Lenders in California

First Republic / JPMorgan Chase

Following the 2023 acquisition, JPMorgan Chase absorbed First Republic's private banking operation and continues to offer premium HELOC products through its Private Client tier. If you have $250,000+ in Chase investments, you may qualify for exceptionally low HELOC rates — sometimes below prime. For standard Chase customers, HELOC rates start around 7.25% APR with relationship pricing. Chase has the largest branch network in California.

Golden 1 Credit Union

California's largest credit union with over $20 billion in assets, Golden 1 offers some of the best HELOC rates in the state. Rates start around 7.25% APR with no closing costs and no annual fee. Membership is open to anyone who lives, works, or attends school in California. They're consistently rated among the top HELOC lenders in the state. Their 10-year draw period and 20-year repayment period are standard.

SchoolsFirst Federal Credit Union

Serving current and former school employees in California (plus their families), SchoolsFirst is the largest credit union in the state by some measures. Their HELOC rates are among the lowest anywhere — starting around 7.00% APR. If you're eligible for membership (you or a family member works for a California school), this should be your first call.

Bank of America

Highly active in California with Preferred Rewards discounts of up to 0.375%. Competitive rates starting around 7.25%–7.75% APR. Strong digital experience and extensive branch network. They offer HELOCs up to $1 million.

Wells Fargo

Headquartered in San Francisco, Wells Fargo has deep California roots. Their HELOC product is solid if unspectacular — rates start around 7.75% APR with autopay discount. They'll go up to $1 million on HELOC lines for qualifying borrowers.

Bethpage Federal Credit Union

Though based in New York, Bethpage lends nationally and consistently offers some of the lowest HELOC rates in the country. Membership is open to anyone (you can join through a qualifying organization). Rates start around 6.99%–7.49% APR. The downside: no California branches, so everything is done remotely.

Figure

Figure is headquartered in San Francisco and its automated platform works extremely well in California's data-rich markets. Rates start around 7.50% APR with fast approval and funding. Their AI-driven home valuation is accurate for most California properties, especially in metro areas.

Spring EQ

A good option for borrowers who want a fixed-rate HELOC. Spring EQ offers second-lien products with fixed rates, which provides payment certainty. Rates are slightly higher than variable options but eliminate rate risk. They're active throughout California.

California-Specific Regulations and Consumer Protections

Anti-Deficiency Protection (CCP § 580b, 580d)

California has strong anti-deficiency protections, but they're nuanced for HELOCs:

• Purchase money loans on owner-occupied 1–4 unit properties are non-recourse — the lender can't pursue a deficiency after foreclosure.
• HELOCs and refinance loans are generally recourse debt. If the property is sold in foreclosure for less than you owe, the lender can potentially pursue you for the difference.
• However, under CCP § 580d, if the lender forecloses non-judicially (trustee sale, which is the norm in California), they waive the right to a deficiency judgment on all liens, including junior ones like HELOCs.

The practical result: if your first mortgage holder forecloses via trustee sale, the HELOC lender gets wiped out and typically cannot pursue a deficiency. But if there's a judicial foreclosure or you do a short sale, the analysis changes. Consult a California real estate attorney for your specific situation.

Non-Judicial Foreclosure

California primarily uses non-judicial foreclosure through deeds of trust. The process takes approximately 120 days minimum (notice of default + 90 days, then notice of sale + 21 days). During this period, you have the right to cure the default.

Community Property State

California is a community property state. Property acquired during marriage is generally owned equally by both spouses. Both spouses typically must consent to a HELOC on community property, even if only one spouse is on title.

California Finance Lenders Law

Non-bank lenders making HELOCs in California must be licensed under the California Finance Lenders Law (CFLL) or the California Residential Mortgage Lending Act (CRMLA). This provides regulatory oversight and consumer protections beyond federal requirements.

Wildfire Insurance Requirements

This isn't a HELOC regulation per se, but it's critically relevant. California's insurance crisis — with major insurers pulling out of wildfire-prone areas — affects HELOC borrowers directly. Lenders require adequate hazard insurance, and if you can't get it through the private market, you may need to use the California FAIR Plan (insurer of last resort), which is more expensive and provides less coverage. Budget for insurance costs when calculating the true cost of your HELOC.

Tax Implications

Federal Deduction

Standard rules: interest deductible if used for home improvement, $750,000 combined limit. Given California's high home values, many borrowers are closer to this limit, which can cap the deductible amount.

California State Income Tax

California has the highest state income tax in the nation, with a top marginal rate of 13.3% on income above $1 million. The rates that affect most HELOC borrowers:

• 6% on income $40,246–$63,312 (single) / $80,490–$126,622 (joint)
• 8% on income $63,312–$79,507 / $126,622–$159,012
• 9.3% on income $79,507–$330,507 / $159,012–$661,012
• 10.3% on income $330,507–$661,012 / $661,012–$1M
• 11.3% on income $661,012–$1M / above $1M (plus mental health surcharge)

California allows mortgage interest deductions on the state return, following federal rules but with a $1 million mortgage debt limit (the pre-2018 federal limit).

The tax benefit is substantial. On $10,000 of deductible HELOC interest, a California homeowner in the 9.3% state bracket and 32% federal bracket saves about $3,200 federally and $930 at the state level — $4,130 total per year in tax savings. This effectively reduces the cost of borrowing significantly.

For high earners in the 11.3%+ state brackets, the combined federal-state tax benefit can reduce the effective HELOC rate by 3–4 percentage points.

Property Tax Context

Thanks to Proposition 13 (1978), California property taxes are capped at 1% of the assessed value at the time of purchase, with annual increases limited to 2% per year. This means long-time homeowners pay dramatically less than the market value would suggest.

A home purchased for $300,000 in 2000 might have a current assessed value of around $480,000 (with 2% annual increases), resulting in property taxes of about $4,800/year. That same home might be worth $900,000 on the open market, where a new buyer would pay about $9,000/year.

For HELOC purposes, lenders use current market value — not the Prop 13 assessed value — to determine equity and CLTV. Your low property tax bill relative to your home's value is actually a benefit: it keeps your housing costs (and DTI) lower than a non-Prop-13 state.

Proposition 19 (2020) modified some Prop 13 rules around intergenerational transfers and portability, but the core protection remains for homeowners staying in their home.

Frequently Asked Questions

What's the maximum HELOC amount in California?

There's no state-imposed maximum. Individual lenders set their own limits — most cap at $500,000 to $1 million. Some private banks and jumbo lenders offer HELOCs up to $2 million or more for high-value properties. For a $2 million home with $1 million owed, at 80% CLTV, you could theoretically access up to $600,000.

How does California's insurance crisis affect HELOCs?

Directly. Lenders require adequate hazard insurance as a condition of your HELOC. If you're in a wildfire-prone area (much of the hills and canyons in LA, the Bay Area, and the Sierra foothills), insurance costs have skyrocketed — sometimes to $10,000–$20,000+ per year. This increases your housing costs, raises your DTI, and can reduce the HELOC amount you qualify for. Some lenders have added wildfire risk overlays to their underwriting.

Can I use a HELOC to fund an ADU in California?

Absolutely, and this is one of the smartest uses. California has streamlined ADU permitting, and a well-built ADU can add $100,000–$300,000+ to your property's value while generating rental income of $1,500–$3,000/month. Using a HELOC to fund ADU construction often has a positive return. Plus, the interest is deductible since you're improving the property that secures the HELOC.

Is it worth getting a HELOC in this rate environment?

It depends on the use. For home improvement that increases property value — especially in California where appreciation rates are strong — the math often works. For debt consolidation, compare the HELOC rate (7–9%) to what you're currently paying (credit cards at 20%+ are an obvious win). For general spending or speculation, probably not. The key advantage of a HELOC over a home equity loan is flexibility: you have the line available but only pay interest on what you draw.

What happens to my HELOC if I sell my California home?

The HELOC must be paid off at closing. The title company will include the HELOC payoff in the settlement statement. Any remaining credit line is closed. If you're selling and buying, you'll need to apply for a new HELOC on the new property after you close on the purchase.

The Bottom Line

California is the premier HELOC market in the country. High home values mean large credit lines. Fierce competition means competitive rates. Strong state income tax deductions mean the effective cost of borrowing is lower than the headline APR suggests.

Your best approach: check SchoolsFirst FCU (if eligible) or Golden 1 Credit Union first — they consistently offer the best rates. Compare against Bank of America or Chase, especially if you have an existing relationship. If speed matters, Figure is worth a look.

For Bay Area homeowners with large equity positions, Chase Private Client or a similar high-net-worth lending program may offer rates that beat anything on the open market.

Three quotes minimum. Negotiate. California lenders will match or beat competitors' offers — they want your business.

The biggest risk for California HELOC borrowers isn't the rate — it's overleveraging in a market that has historically experienced sharp corrections (early 1990s, 2008–2012). Keep your CLTV at 70% or below if you can. Leave a cushion. California real estate always comes back, but it can take years, and you don't want to be underwater on a HELOC during that time.

Smart equity access can accelerate wealth building. Reckless equity extraction can devastate it. Know which one you're doing.

Related Articles

• [Home Equity Explained: What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• Best HELOC Lenders in 2026 - Compare Rates and Draw Periods