HELOC Rates in Denver, CO: Your 2026 Guide to Home Equity Lines of Credit

Denver's real estate market has been one of the strongest in the country for the better part of a decade. Even after the cooldown from the 2022 peak, homeowners along the Front Range are sitting on substantial equity — the kind of equity that makes a [home equity line of credit](/blog/best-heloc-lenders-2026) (HELOC) a genuinely useful financial tool.

Whether you're remodeling a 1950s ranch in Lakewood, finishing a basement in Highlands Ranch, or pulling cash for a down payment on a mountain cabin, this guide covers everything you need to know about HELOCs in Denver: current rates, the best local lenders, Colorado-specific regulations, and the tax implications you should understand before borrowing.

Current HELOC Rates in Denver (February 2026)

Denver-area HELOC rates currently fall in the 7.00% to 9.25% APR range for qualified borrowers. Colorado's competitive credit union market helps keep rates on the lower end compared to many other metros.

Here's what to expect:

• Credit unions: 7.00% – 8.00% APR for borrowers with 740+ credit scores and LTV under 80%
• Regional and community banks: 7.50% – 8.50% APR
• National banks: 8.00% – 9.25% APR, with introductory rates sometimes as low as 6.25% for the first 6–12 months

Denver HELOCs are almost exclusively variable-rate products tied to the prime rate (currently 8.50%). Your rate equals prime plus or minus a margin based on your credit profile. Top-tier borrowers at local credit unions can sometimes get prime minus 1.50%.

Best HELOC Lenders in Denver

Credit Unions

Bellco Credit Union Bellco is Colorado's largest credit union and one of the best HELOC options in the Denver metro. They serve anyone who lives or works in Colorado, making them accessible to virtually every Denver homeowner.

• Typical rate: Prime minus 0.75% to prime minus 1.50%
• No annual fee
• No closing costs on most HELOCs
• Draw period: 10 years, repayment period: 15 years
• Fixed-rate lock option available

Elevations Credit Union Based in Boulder but serving the entire Front Range, Elevations has been aggressive on HELOC pricing. They frequently appear on "[best HELOC rates](/blog/heloc-rate-negotiation-guide)" lists nationally.

• Typical rate: Prime minus 0.50% to prime minus 1.25%
• No annual fee
• Closing costs waived for lines under $250,000 (must keep open 36 months)
• Online application with quick turnaround

Canvas Credit Union Formerly known as Public Service Credit Union, Canvas has a large Denver presence with multiple branches. They offer a solid HELOC product with no closing costs and competitive rates.

• Typical rate: Prime minus 0.25% to prime minus 1.00%
• No annual fee, no closing costs
• 10-year draw period, 20-year repayment

Premier Members Credit Union Another strong Colorado option. Premier Members serves Boulder and Denver counties and offers HELOCs with no closing costs and a straightforward rate structure.

Banks

FirstBank FirstBank is Colorado's largest locally owned bank, headquartered in Lakewood. They're a strong middle ground between credit union rates and big-bank convenience, with branches throughout the metro area.

• Typical rate: Prime + 0.00% to prime + 0.75%
• Low closing costs
• Flexible underwriting for self-employed borrowers

Alpine Bank A Colorado-based community bank with a growing Denver presence. Alpine Bank tends to offer competitive rates and more personalized service than national banks.

Wells Fargo / Chase / U.S. Bank All three have significant Denver market share. U.S. Bank is worth singling out — they often have slightly better HELOC rates than Wells or Chase, and they offer a fixed-rate conversion option. All three offer relationship discounts of 0.25%–0.50% for existing customers.

Denver Housing Market and Your Equity

Home Values

The median [home value](/blog/appraisal-process-explained) in metro Denver is approximately $575,000 as of early 2026. Denver experienced one of the steepest run-ups in the country during 2020–2022, with prices peaking around $615,000 in mid-2022 before pulling back modestly. Values have stabilized and are gradually recovering.

Here's a neighborhood breakdown:

How Much Can You Borrow?

Denver lenders typically allow 80% to 90% CLTV (combined loan-to-value). Let's walk through an example:

Your home is worth $575,000 and you owe $350,000 on your mortgage.

At 80% CLTV:

• $575,000 × 80% = $460,000
• $460,000 – $350,000 = $110,000 HELOC

At 90% CLTV:

• $575,000 × 90% = $517,500
• $517,500 – $350,000 = $167,500 HELOC

Many Denver homeowners who bought before 2020 have seen their equity grow dramatically. If you purchased a home in 2017 or 2018, you may have 40%–50% equity even without extra mortgage payments.

Market Conditions

Denver's market has shifted from the frenzy of 2021–2022 to a more sustainable pace. Inventory is still below historical norms, which supports prices, but bidding wars are rare and sellers are more willing to negotiate. For HELOC purposes, this stability is positive — lenders aren't worried about sharp value declines, which keeps approval standards reasonable.

One risk factor: the Denver condo market has softened more than single-family homes, particularly for older units and those with high HOA fees. If you own a condo, your appraisal might come in lower than you expect.

Colorado HELOC Regulations

Colorado has a generally borrower-friendly regulatory environment for HELOCs, with a few important specifics:

No State-Mandated LTV Cap

Colorado does not impose a state-level limit on how much equity you can borrow (unlike Texas at 80%). Your borrowing limit is determined entirely by the lender's own policies.

Colorado Consumer Credit Code

HELOCs in Colorado are governed partly by the Uniform Consumer Credit Code (UCCC), which provides consumer protections around disclosures, fees, and lending practices. Key protections include restrictions on certain prepayment penalties and requirements for clear fee disclosure.

Property Tax Considerations

Colorado's property tax system is unique. Residential properties are assessed at 6.7% of market value (following recent changes from the Proposition HH debate and subsequent legislation). This means property taxes in Denver are relatively low compared to many other high-cost metros. For HELOC borrowers, this is a minor but real advantage — lower property tax obligations leave more room in your [debt-to-income ratio](/blog/dti-ratio-explained).

Recording Fees

When your HELOC deed of trust is recorded with the county, expect to pay recording fees of approximately $13 per page in most Denver-area counties. A typical HELOC deed runs 15–25 pages, so you're looking at $195–$325. Many lenders cover this as part of their no-closing-cost offers.

Right of Rescission

The federal three-business-day right to cancel applies to all Denver HELOCs secured by your primary residence.

Tax Implications for Denver Homeowners

Federal Tax Deduction

HELOC interest is deductible on your federal taxes only if you use the borrowed funds to buy, build, or substantially improve your home. Using a HELOC to renovate your kitchen or add a bathroom qualifies. Using it to pay off credit cards or buy a car does not.

The deduction is subject to the overall $750,000 cap on total mortgage debt (including your first mortgage). Given Denver's high home values, some homeowners may bump up against this limit.

Colorado State Taxes

Colorado has a flat state income tax of 4.40% as of 2026. The state generally conforms to federal tax treatment of mortgage interest, so if your HELOC interest is deductible federally, it's deductible on your Colorado return.

Strategy for Denver Homeowners

If you're planning a significant home improvement project, using a HELOC instead of a personal loan or credit cards gives you a potential double benefit: a lower interest rate and a tax deduction. Keep meticulous records — save every contractor invoice, materials receipt, and permit document.

How to Get the Best HELOC Rate in Denver

1. Start with Bellco or Elevations. Colorado's credit unions consistently beat bank rates by 0.50% or more. Even if you end up going with a bank, having a credit union quote gives you leverage.

2. Check your LTV. If you're close to an LTV threshold (say, 81% vs. 79%), paying down a bit of your mortgage or getting a slightly higher appraisal could drop you into a better rate tier.

3. Ask about autopay discounts. Many lenders offer 0.25% off for setting up automatic payments from a checking account at the same institution.

4. Don't fixate on introductory rates. A 6.25% teaser rate that jumps to 9.00% after 12 months is usually worse than a straight 7.50% variable rate unless you plan to pay off the balance within the intro period.

5. Time your application. Denver's real estate market tends to be strongest in spring and summer. If your home would appraise better during peak season, consider timing your [HELOC application](/blog/heloc-application-process-step-by-step) accordingly.

6. Get multiple quotes on the same day. HELOC rates can change, and comparing quotes from different dates isn't a true apples-to-apples comparison.

Common Uses for HELOCs in Denver

Denver homeowners frequently use HELOCs for:

• Basement finishing: A classic Denver move. Unfinished basements are common in the metro area, and finishing one adds $30,000–$80,000 in value while costing $25,000–$60,000. A HELOC is ideal for this kind of project since you draw funds as the work progresses.

• Energy efficiency upgrades: Colorado's sunshine makes solar panels a popular investment. Many Denver homeowners use HELOCs to fund solar installations, new windows, or insulation — projects that both reduce utility bills and increase home value.

• ADU construction: Denver updated its zoning regulations in recent years to allow accessory dwelling units (ADUs) in more neighborhoods. Building a detached ADU can cost $150,000–$300,000 but can generate $1,500–$2,500/month in rental income.

• Debt consolidation: With a HELOC rate of 7.50% vs. credit card rates of 20%+, the math often works — but only if you're disciplined enough not to run up new [credit card debt](/blog/heloc-vs-credit-card).

Frequently Asked Questions

How long does it take to close a HELOC in Denver?

Expect 2 to 5 weeks from application to closing. Credit unions tend to be on the longer end (3–5 weeks), while larger banks with automated underwriting can sometimes close in 2–3 weeks. Several Denver lenders now offer fully online applications.

Can I get a HELOC on a condo in Denver?

Yes, but with caveats. Lenders will review the HOA's financial health, insurance coverage, and litigation status. Condos in buildings with significant deferred maintenance, low reserve funds, or ongoing lawsuits may be difficult to get a HELOC on. FHA-approved condo projects generally have an easier time.

What's the minimum credit score for a HELOC in Denver?

Most Denver lenders require 680 or higher. Bellco and Canvas may go as low as 660 with strong compensating factors. For the best rates (prime minus 1.00% or better), you'll typically need 750+.

Should I get a HELOC or a home equity loan in Denver?

It depends on your needs. A HELOC is better if you want flexible access to funds over time (like an ongoing [renovation](/blog/bathroom-renovation-cost-guide)). A home equity loan gives you a lump sum at a fixed rate, which is better if you know exactly how much you need and want payment certainty. Many Denver homeowners use a HELOC for smaller projects and a home equity loan for large, defined expenses.

Can I deduct the interest if I use my HELOC to buy a rental property?

Not as mortgage interest, but potentially as an investment expense. If you use HELOC funds to purchase a rental property, the interest may be deductible against your rental income as a business expense. Consult a tax professional — this is an area where the rules get complicated.

Bottom Line

Denver's strong equity positions, competitive credit union market, and borrower-friendly state regulations make it one of the better metros in the country for HELOC borrowers. Start by getting quotes from Bellco and at least one other credit union, compare against a bank or two, and focus on the total cost — not just the introductory rate. Most Denver homeowners with good credit and reasonable equity should be able to land a HELOC in the 7.00%–8.25% range.

Related Articles

• Using a HELOC as a Down Payment for Rental Property
• [Home [Equity Explained](/blog/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