[HELOC Rates](/blog/best-heloc-lenders-2026) in Seattle, WA: Your 2026 Guide to Home Equity Lines of Credit

Seattle homeowners have a problem most people would love to have: too much home equity. After years of tech-fueled price appreciation, the median home in the Seattle metro area is worth well over $700,000, and many homeowners who bought before 2020 are sitting on $200,000 to $400,000 in tappable equity.

A HELOC is one of the smartest ways to access that equity without refinancing your first mortgage — especially if you locked in a sub-4% rate during 2020–2021 and don't want to give it up. This guide covers everything Seattle-area homeowners need to know: current rates, the best local lenders, Washington state rules, and the tax implications that matter.

Current HELOC Rates in Seattle (February 2026)

HELOC rates in the Seattle metro currently range from 7.00% to 9.50% APR depending on your credit profile, LTV ratio, and lender choice.

• Credit unions: 7.00% – 8.25% APR for well-qualified borrowers (740+ credit, under 80% LTV)
• Regional banks: 7.50% – 8.75% APR
• National banks: 8.00% – 9.50% APR, sometimes with introductory rates as low as 6.49%

All Seattle-area HELOCs are variable-rate products indexed to the prime rate (8.50% as of February 2026). Your rate is calculated as prime plus or minus a margin. The best borrowers at local credit unions can get margins of prime minus 1.50% or better.

Why Seattle HELOC Rates Are Competitive

Washington state has a robust credit union ecosystem, and Seattle's high home values mean lenders are competing for affluent borrowers who represent low risk. The result: Seattle HELOC rates often match or beat national averages.

Best HELOC Lenders in Seattle

Credit Unions

BECU (Boeing Employees Credit Union) BECU is Washington's largest credit union with over 1.3 million members. Despite the name, membership is open to anyone who lives or works in Washington state. BECU consistently offers some of the [lowest HELOC rates](/blog/best-heloc-rates-2026) in the region.

• Typical rate: Prime minus 1.00% to prime minus 1.50%
• No annual fee
• No closing costs
• Draw period: 10 years, repayment period: 15 years
• Maximum HELOC: $500,000
• Fixed-rate option available

WSECU (Washington State Employees Credit Union) Open to all Washington residents, WSECU offers competitive HELOC rates with a simple, transparent structure. They're especially popular with borrowers who want straightforward terms without teaser rates or hidden fees.

• Typical rate: Prime minus 0.50% to prime minus 1.25%
• No annual fee, no closing costs
• 10-year draw, 15-year repayment
• Online application with 48-hour conditional approval

Alaska USA Federal Credit Union Despite the name, Alaska USA has a significant Washington presence with branches across the Seattle metro. They offer HELOCs up to $500,000 with competitive rates.

Salal Credit Union A smaller Seattle-based credit union that punches above its weight on HELOC products. Salal's personalized service can be an advantage for borrowers with non-standard income situations (freelancers, tech workers with stock-heavy compensation, etc.).

Banks

Washington Federal (WaFd Bank) A regional bank headquartered in Seattle with deep local roots. WaFd offers HELOCs with competitive rates and flexible terms. They've been in Washington since 1917, and their local knowledge shows in their underwriting — they understand Seattle's neighborhoods and property types better than most national banks.

• Typical rate: Prime + 0.00% to prime + 0.75%
• Closing costs: Generally waived for lines over $50,000
• Fixed-rate conversion available

HomeStreet Bank Another Seattle-based bank with strong HELOC products. HomeStreet offers both variable and fixed-rate HELOC options, and their local underwriting team can be more flexible than the automated systems at national banks.

Banner Bank Headquartered in Walla Walla but with a growing Seattle presence, Banner Bank offers competitive HELOC rates and is known for straightforward communication throughout the process.

U.S. Bank / Chase / Bank of America All major national banks are active in Seattle. U.S. Bank tends to be the most competitive on HELOC rates among the three. All offer relationship discounts of 0.25%–0.50% for existing customers.

Seattle Housing Market and Your Equity

Home Values

The median [home value](/blog/appraisal-process-explained) in metro Seattle is approximately $735,000 as of early 2026, making it one of the most expensive markets in the country. Prices peaked around $800,000 in 2022, corrected to about $700,000 in 2023, and have since recovered modestly.

Here's a neighborhood breakdown:

How Much Can You Borrow?

Seattle lenders typically allow 80% CLTV, with some going up to 90% for strong borrowers. Given Seattle's high home values, the borrowing amounts can be substantial.

Example: Your home is worth $800,000 and you owe $450,000.

At 80% CLTV:

• $800,000 × 80% = $640,000
• $640,000 – $450,000 = $190,000 HELOC

At 90% CLTV:

• $800,000 × 90% = $720,000
• $720,000 – $450,000 = $270,000 HELOC

Many Eastside homeowners (Bellevue, Kirkland, Redmond) with homes valued at $1M+ can access HELOCs of $300,000–$500,000.

Market Conditions

Seattle's market in 2026 is stabilizing after the volatility of 2022–2024. Tech layoffs in 2022–2023 spooked the market, but Amazon, Microsoft, Google, and Meta all still have massive presences in the region, and hiring has resumed. Population growth continues to outpace housing supply in the urban core.

For HELOC borrowers, the key concern is appraisal accuracy. Seattle's price swings mean your home might appraise lower (or higher) than you expect. Consider getting a preliminary valuation from your lender before committing to a formal application.

Washington State HELOC Regulations

No State Income Tax — But Real Estate Excise Tax Matters

Washington has no state income tax, which means there's no state-level deduction for HELOC interest (since there's nothing to deduct against). However, this also means you keep more of your income, potentially improving your [debt-to-income ratio](/blog/dti-ratio-explained) for HELOC qualification.

Washington Consumer Loan Act

HELOCs in Washington are regulated under the Consumer Loan Act (CLA), which requires lenders to be licensed and sets standards for disclosures, fees, and lending practices. The CLA provides a layer of consumer protection beyond federal requirements.

No State LTV Cap

Washington does not impose a state-mandated limit on [home equity borrowing](/blog/home-equity-loan-vs-heloc-2026). Your maximum CLTV is determined by the lender.

Recording Fees

King County (Seattle) charges recording fees of approximately $86 for the first page and $1 per additional page for deeds of trust. This has increased in recent years due to surcharges funding affordable housing initiatives. A typical HELOC deed of trust runs about $100–$150 in recording fees.

Community Property State

Washington is a community property state, which means both spouses generally must consent to a HELOC on a jointly-owned home. Even if only one spouse is on the mortgage, the other may need to sign the HELOC deed of trust. This can complicate things in some situations — discuss with your lender upfront.

Tax Implications for Seattle Homeowners

Federal Tax Deduction

The same federal rules apply: HELOC interest is deductible if the funds are used to buy, build, or substantially improve your home, subject to the $750,000 total mortgage debt cap.

Important for Seattle homeowners: Given the area's high property values, many borrowers already have first mortgages near or above $750,000. If your first mortgage is $700,000 and you take out a $100,000 [HELOC for home improvement](/blog/heloc-for-home-gym-conversion), only the interest on the first $50,000 of the HELOC may be deductible ($700K + $50K = $750K cap). Talk to your tax advisor about how the cap applies to your specific situation.

No State Income Tax Benefit

Since Washington has no state income tax, you won't get any state-level tax benefit from HELOC interest. This is a meaningful difference compared to states like California or Oregon where the state deduction adds real savings.

Capital Gains Exclusion

One indirect tax benefit for Seattle homeowners: if you use your HELOC to improve your home, those improvements increase your cost basis. When you eventually sell, a higher cost basis reduces any taxable capital gains above the $250,000/$500,000 exclusion. Given Seattle's appreciation, this could save you real money down the road.

Special Considerations for Seattle HELOC Borrowers

Tech Compensation and Underwriting

Many Seattle-area borrowers have non-traditional income: RSUs (restricted stock units), bonuses, freelance income, or startup equity. Not all lenders handle this well.

Tips for tech workers:

• BECU and WSECU are generally good at handling RSU income
• WaFd Bank and HomeStreet have local underwriters familiar with tech compensation structures
• National banks often have rigid income verification processes that don't account for stock-based compensation
• Have 2 years of tax returns and a recent paystub showing your RSU vesting schedule ready

High-Value Properties

If your home is worth over $1 million, you'll want a lender that can handle jumbo HELOCs. BECU caps at $500,000, but some banks (WaFd, U.S. Bank) can go higher. For HELOCs over $500,000, expect more documentation requirements and slightly higher rates.

Earthquake Risk

While not a direct HELOC concern, Seattle is in a seismic zone. Lenders require hazard insurance on your home, and some may inquire about [earthquake insurance](/blog/earthquake-insurance-guide). Standard homeowner's policies don't cover earthquake damage — something to consider if you're taking on additional debt secured by your home.

Frequently Asked Questions

How long does it take to get a HELOC in Seattle?

Plan on 3 to 5 weeks. Seattle-area lenders have been experiencing moderate-to-high volume in early 2026, and appraisals in King County can take longer due to the complexity of the market. BECU quotes 3–4 weeks; some banks claim 2–3 weeks but may take longer in practice.

What credit score do I need for a HELOC in Seattle?

Most Seattle lenders require 680 minimum. For the best rates, aim for 750+. Given the high dollar amounts involved (average Seattle HELOC is larger than the national average), lenders tend to be somewhat stricter on credit requirements.

Can I get a HELOC if I have a jumbo first mortgage?

Yes. Having a jumbo first mortgage doesn't disqualify you from a HELOC. However, the combined loan amount (first mortgage + HELOC) will be scrutinized closely. If your total debt exceeds conforming limits, expect slightly tighter underwriting standards.

Are there any Seattle-specific HELOC programs for energy efficiency?

Not specific to HELOCs, but Washington state offers various incentives for energy-efficient home improvements (heat pumps, solar, weatherization). You can use a HELOC to fund these projects and potentially benefit from both the tax deduction (if used for home improvement) and the state incentive programs.

Can I use a HELOC as a bridge loan when buying a new home in Seattle?

Yes, and this is relatively common in Seattle given the competitive market. Some buyers use a HELOC on their current home to fund the down payment on a new home, then pay off the HELOC when the original home sells. This strategy works best if your current home has significant equity and you're confident it will sell quickly. Be aware of the risk: if your home takes longer to sell than expected, you'll be carrying both the HELOC payment and the new mortgage.

Bottom Line

Seattle's sky-high home values translate into massive borrowing potential through HELOCs, and the local lending market — led by BECU and other Washington credit unions — keeps rates competitive. The lack of a state income tax means you won't get a state-level deduction on interest, but the overall cost of a HELOC in Seattle remains attractive compared to alternative borrowing methods. Start with BECU, compare against WSECU and at least one bank, and make sure your lender can handle the complexities of your income structure and property value. Most qualified Seattle borrowers can expect HELOC rates in the 7.00%–8.50% range.

Related Articles

• [Home [Equity Explained](/blog/home-equity-explained): What It Is and How to Build It](/blog/home-equity-explained)
• Tappable Home Equity: How Much Can You Access?
• Best HELOC Lenders in 2026 - Compare Rates and Draw Periods