Washington State HELOC Guide: Rates, Lenders & Requirements (2026)

Meta Title: Washington HELOC Guide: Best Rates, No State Tax Advantage (2026) Meta Description: Washington homeowners have significant equity, especially in Seattle. Find the best WA HELOC lenders including BECU, plus no state income tax benefits. Keywords: washington heloc, heloc washington state, seattle heloc, washington state home equity loan

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Washington State homeowners — especially in the Seattle metro — are sitting on substantial equity.

The Seattle area has some of the highest home values outside California. And Washington has no state income tax, simplifying your financial picture.

Here's how to tap your equity wisely.

Washington HELOC Rates Right Now

Rates as of February 2026. Verify current rates with lenders.

Washington insight: BECU (Boeing Employees Credit Union) is the standout. Washington's largest credit union, now open to anyone in Washington, consistently has the best rates.

Best Washington HELOC Lenders

1. BECU (Boeing Employees Credit Union)

• Best for: Best overall Washington option
• Rates: Consistently the lowest in the state
• Coverage: Statewide, strongest in Seattle metro
• Standout: Membership open to all Washington residents (not just Boeing employees)

2. WSECU (Washington State Employees Credit Union)

• Best for: State employees and their families
• Rates: Very competitive
• Coverage: Statewide
• Standout: Open membership options available

3. Numerica Credit Union

• Best for: Eastern Washington (Spokane, Tri-Cities)
• Rates: Competitive regionally
• Standout: Strong Eastern WA presence

4. iQ Credit Union

• Best for: Vancouver and SW Washington
• Rates: Competitive
• Standout: Serves both WA and OR sides of the Portland metro

5. HomeStreet Bank

• Best for: Those preferring a bank over credit union
• Type: Seattle-based regional bank
• Standout: Local expertise, mortgage focus

Washington HELOC Requirements

Good news: Washington has no unusual state restrictions. Standard HELOC process.

The Seattle Metro Equity Opportunity

Seattle area home values are among the highest in the nation.

Median home prices:

• Seattle proper: $850,000+
• Eastside (Bellevue, Kirkland, Redmond): $1,000,000+
• South King County: $550,000-700,000

What this means for equity:

• Significant borrowing capacity
• But also: Larger HELOCs mean larger payments
• Don't borrow just because you can — borrow what you need

The tech connection: Seattle's economy is heavily tech-influenced. High incomes support high home values, but tech layoffs create risk. Consider your job stability when deciding how much to borrow.

Washington-Specific Considerations

No State Income Tax

Washington has no personal income tax. This is significant for financial planning.

HELOC implications:

• Federal deduction is your only tax benefit
• Simpler tax situation than California or New York
• No state deduction calculations needed

The trade-off: Washington has higher sales tax and property taxes. But for HELOC purposes, the lack of state income tax simplifies things.

Island & Waterfront Properties

Washington has significant island and waterfront real estate: San Juan Islands, Whidbey Island, Hood Canal, Puget Sound waterfront.

HELOC considerations for these properties:

• Appraisals may require specialists familiar with water access
• Comparable sales can be limited
• Island properties may have ferry-access-only complications
• Waterfront requires appropriate insurance (flood, erosion)

Practical impact: Possible but may take longer and require specialized lenders.

Eastern Washington

Beyond the Cascades, the market is different:

Spokane and Tri-Cities:

• Lower home values than Seattle (but appreciating)
• More affordable housing = smaller HELOC amounts but more manageable payments
• Numerica CU is the strong local option

What to know: BECU and WSECU serve Eastern Washington, but local credit unions have strong presence too.

How to Get a Washington HELOC

Step 1: Check your home value Seattle-area values are well-documented. Redfin (Seattle-based company) has good data.

Step 2: Calculate available equity Value × 80-85% - mortgage balance = HELOC capacity

Step 3: Join BECU (if not already a member) Membership is open to anyone who lives, works, or worships in Washington. It's worth joining for their rates.

Step 4: Compare other options Get quotes from WSECU and any local credit union. Even if BECU wins, knowing the market helps.

Step 5: Apply Timeline: 2-3 weeks typical Seattle's data-rich market often means faster appraisals

Washington HELOC Tax Implications

State income tax: None.

Federal deduction: HELOC interest is deductible IF used for home improvements (up to $750K total mortgage debt).

Practical impact: You're not getting double deduction benefits like California or New York residents. But you're also not paying 10-13% state income tax in the first place.

Keep records anyway: Federal deduction still valuable. Document home improvement expenses.

Common Questions

What are the best HELOC rates in Washington? BECU consistently has the lowest rates at 7-8%. Other credit unions are competitive at 7.25-8.5%.

Can I get a HELOC on a waterfront property? Yes, but expect specialized appraisal and insurance requirements. Island properties (ferry access only) may face more scrutiny.

How does no state income tax affect my HELOC? It simplifies your tax situation. Only the federal deduction applies, but you're not paying state tax anyway.

What credit unions offer HELOCs in Seattle? BECU is the largest and usually best. WSECU, Seattle Credit Union, and Verity are also options.

How much equity do Seattle homeowners have? With $850,000+ median values, long-term owners often have $200,000-500,000+ in equity.

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Next Steps

Calculate your home equity to see what's available. Then join BECU if you're not already a member — they're consistently the best option in Washington.

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Last updated: February 2026