Best HELOC Lenders for 2025

Home equity is an effective way for homeowners to build wealth. It can also be a valuable financial resource when you need access to funds.

If you have enough equity in your home, you can borrow against it through a home equity line of credit (HELOC). While a HELOC has pros and cons, this loan can help you cover home renovations, emergency expenses, debt consolidation and more.

Here’s our expert list of some of the best HELOC lenders of 2025, along with a closer look at what a home equity line of credit is and how it works. To create this list, we consulted with multiple certified financial planners and experts, plus evaluated each HELOC lender through a standardized methodology, which you can view at the bottom of this article. I’ve also been working in finance for the past decade, so it’s safe to say I know a thing or two about HELOCs. Let’s get into it, shall we?

Quick Winners List

• Best Overall: Bethpage Federal Credit Union
• Best Fixed-Rate HELOC: Figure
• Best HELOC for Veterans: Navy Federal Credit Union
• Best HELOC for Bad Credit: Lower
• Best HELOC for Self-Employed: PenFed Credit Union
• Best HELOC for Investment Property: Better

Best Overall: Bethpage Federal Credit Union

Pros:

• Promotional introductory rate
• No closing costs
• Fixed-rate options
• Highly-rated mobile apps
• Excellent Trustpilot rating

Cons:

• Higher max LTV with other lenders
• Slower funding than other lenders
• Limited branches outside of Long Island

With a Bethpage HELOC, you can secure a fixed rate as low as 6.99% for the first 12 months. After that, Bethpage bases your APR on your creditworthiness and the Prime Rate (currently 7.50%). The max loan-to-value (LTV) is 80%, but you can only withdraw up to 75% if you want the introductory rate.

There are no closing costs or fees for the application origination or appraisal. According to its site, members get access to their funds within 35 days on average.

Bethpage has an excellent rating on Trustpilot, currently at 4.4 stars with over 80 reviews. Its mobile apps are also highly rated for both Apple and Android. I also contacted the credit union to ask a couple of questions about this article. The representative responded promptly and was friendly and helpful.

Minimum credit score: 670

National/regional: National

Max LTV: 80%

Best Fixed-Rate HELOC: Figure

Pros:

• Fixed-rate HELOCs
• Competitive interest rates
• Quick funding
• Option for secondary and investment properties
• Excellent Trustpilot rating

Cons:

• Origination fee up to 4.99%
• Must withdraw full loan amount at origination
• Higher max credit limits with other lenders

Most traditional HELOCs have a variable APR, meaning your interest rate can change at any time. Figure, however, offers a fixed-rate HELOC with rates ranging from 6.95% to 16.35%.

You may be able to prequalify with Figure’s 100% online application and receive your funding within five days. The credit limit is $400,000; however, you can redraw up to 100% of your original credit limit as you pay it off.

Customers have rated Figure 4.5 stars on Trustpilot. I contacted Figure with questions for this article. Although it took a few days to respond, a representative did get back to me. I sent my email on New Year's Day, though, so it may have gotten lost in the shuffle with the holidays.

Minimum credit score: 640

National/regional: National

Max LTV: 85%

Best HELOC for Veterans: Navy Federal Credit Union

Pros:

• High max LTV
• 20-year draw period
• No closing costs
• Home Equity Line Platinum Credit Card
• Excellent Trustpilot rating

Cons:

• Slower funding than other lenders
• Poor Android app reviews
• Membership requirements

Navy Federal is a credit union that provides banking products to veterans. To qualify for membership, you or someone in your family or household must be a service member of the armed forces, DoD or National Guard.

Although you can find a lower APR elsewhere, 8.00% is still a highly competitive HELOC rate. Navy Federal also lets you draw up to 95% of your loan-to-value ratio ($500,000 limit) – one of the highest max LTVs on this list. On top of that, the draw period lasts 20 years instead of the typical 10 and you get a Home Equity Line Platinum Credit Card.

Members rate Navy Federal highly, with 4.5 stars from over 38,000 Trustpilot reviews. Its customer service is available 24/7 and there are over 360 branches worldwide. Although the Navy Federal Android app has received poor reviews on Google Play, it’s rated highly by Apple users.

Minimum credit score: Not disclosed

National/regional: National

Max LTV: 95%

Best HELOC for Bad Credit: Lower

Pros:

• High LTV
• Can qualify with a fair credit score
• Prequalify with a soft credit inquiry
• Customer support via text
• Excellent Trustpilot rating

Cons:

• Lower rates with other lenders
• 1% origination fee
• Not available in all states

Many lenders have HELOC requirements that include a credit score of 680 or higher. With Lower, however, you only need a score of 580. This makes it easier for subprime consumers to access credit.

Its HELOC interest rates are higher, ranging between 8.75% and 13.50% APR. However, the maximum LTV is 95% (up to $500,000), tying Navy Federal for the highest loan-to-value ratio on this list. Keep in mind, though, that there’s a 1% origination fee for HELOC transactions.

Lower is one of the best HELOC lenders for Trustpilot ratings, with 96% of reviewers giving the company a 5-star review. Customers praise the company for its transparency, easy application process and outstanding service from its representatives.

Minimum credit score: 580

National/regional: National

Max LTV: 95%

Best HELOC for Self-Employed: PenFed Credit Union

Pros:

• Competitive interest rates
• Fast closing
• No origination fees
• Clear documentation requirements 
• Excellent mobile app reviews

Cons:

• Expensive closing costs
• Higher max LTV with other lenders
• Better Trustpilot rating with other lenders

Applying for credit can be more challenging when you’re self-employed. PenFed, however, makes it simple by clearly listing on its website the documentation both W2 and self-employed workers need to qualify for a HELOC.

The credit union provides competitive rates on HELOCs, starting at 7.37% APR. Although closing costs range from $500 to $8,500, it has no origination fees and you can close in as little as 15 days. It’s also an interest-only HELOC during the 10-year draw period, meaning you’ll have lower payments.

While there’s room for improvement, PenFed has a Trustpilot rating of 3.9 stars from over 1,500 reviews. Its mobile app also has excellent reviews on Google Play and the App Store.

Minimum credit score: 680

National/regional: National

Max LTV: 80%

Best HELOC for an Investment Property: Better

Pros:

• Available for secondary and investment homes
• High max LTV
• Quick funding
• Prequalification with a soft credit inquiry
• Excellent Trustpilot rating

Cons:

• Lower rates with other lenders
• High minimum withdrawal
• No mobile apps

Many of the best HELOCs are only available for your primary residence. So if you want to take out a HELOC on investment properties or a second home, then Better could be the ideal choice.

Rates start as low as 8.00% APR, but you must withdraw a minimum of $50,000 or 75% of your credit limit at closing, whichever is greater. You can get approved online within minutes, close as soon as three days and receive funding in as little as seven days.

Better has an excellent Trustpilot score and is Better Business Bureau (BBB) accredited with an A rating. It doesn’t have a mobile app, which may be a turnoff if you like managing your finances from your phone.

Minimum credit score: 680

National/regional: National

Max LTV: 90%

What is a HELOC?

A home equity line of credit or HELOC, is a loan that lets you borrow money using the equity in your home.

Your home equity is the value of your property minus the amount you owe on your mortgage.

Property Market Value – Remaining Mortgage Balance = Home Equity

So, as you pay down your mortgage balance, your home equity will increase if your property value goes up.

When you’ve built enough equity in your home, you can open a revolving line of credit with a HELOC. However, since your home secures the loan, you risk foreclosure if you can’t make the payments.

How Does a HELOC work?

HELOCs typically have a set credit limit. Some of the best HELOC lenders let you borrow up to 80% of your home’s loan-to-value ratio (LTV), which is the value of your home minus the amount you owe on your mortgage.

You can use the line of credit as needed during the “draw period” (usually five to 10 years). Many lenders only require interest payments during this time. Then, once the HELOC draw period ends, you start paying the principal and interest during the repayment period (normally 10-20 years). But this might not always be the case:

“Some HELOCs require that you begin paying back interest and principal immediately after use, meaning not all loans allow you to continuously use and pay off your line of credit,” said Joseph Eck, CFP and owner of Stage Ready Financial Planning.

“A HELOC also typically comes with an annual fee and sometimes costs associated with the application and underwriting, whether you use the line of credit or not.”

You should also be aware that although some HELOCs offer fixed-rate options, most have variable interest rates, meaning the APR can change at any time.

Who Should Open a HELOC? 

Homeowners often use HELOCs to fund home repairs and renovations. This can be a strategic move that boosts the property's value, increasing home equity in the long run.

However, there may be other instances where you can use a HELOC:

“I often recommend opening a HELOC to create a liquid resource when a homeowner doesn’t have strong cash reserves,” said Eck. “If someone is trying to build up their emergency fund, a HELOC can be a great way to have access to cash in the meantime for an emergency.”

You might also use a HELOC to pay off credit card debt, cover educational costs or start a new business.

Alternatives to HELOC

While a HELOC can be a great option if you’re low on cash or need to fund a project, it may not be the best choice for everyone. According to Eck, there are some potential downsides to consider:

“Payback terms and interest rates can vary dramatically and in many cases, your interest rate can fluctuate or increase over time,” Eck said. “If you use your HELOC, there’s always a risk that you would struggle to repay the loan, potentially putting your house at risk.”

If you’re not sure if a HELOC is right for you, here are some possible alternatives:

• Home equity loan: Similar to a HELOC, a home-equity loan lets you use your home equity to borrow money. The main difference is that you receive a lump sum instead of opening a line of credit. So, is a home-equity loan a good idea? It depends. A home-equity loan provides a fixed APR, making it more stable and predictable, while a HELOC offers more flexibility and often a lower interest rate.

• Cash-out refinance: If receiving a lump sum instead of a line of credit interests you, a cash-out refinance is another option. You take out a new mortgage to pay off your old one plus the amount you want to borrow. The loan may have different terms than your first mortgage, though, along with a new interest rate and amortization schedule.

• Reverse mortgage line of credit: People aged 62 or older can borrow from their home equity with a reverse line of credit. A reverse mortgage accrues interest but doesn’t require payments until the homeowner sells, moves out or passes away.

• Personal loan: Unlike a home-equity loan or HELOC, personal loans are unsecured, meaning you don’t need to provide collateral. You’ll likely pay a higher interest rate, but if you miss any payments, you won’t risk losing your home.

• 0% introductory APR credit card: You can make interest-free purchases with some credit cards as long as you pay off the balance before the introductory period ends (usually within 12-18 months). This option is risky, though, because if you miss a payment or don’t pay the card off in time, you’ll likely get hit with back interest at a rate as high as 25% to 35% APR.

Why You Should Trust Us

Benzinga provides approximately 25 million monthly readers with up-to-date data and news so they can stay informed and learn more about the financial world. Since 2010, we’ve helped individual investors navigate the capital markets and improve their financial health without analyst and brokerage fees.

As for the author of this article, Carley Clark (yours truly), I have been writing about finance since 2020. In 2015, I earned my bachelor’s degree in business from Spring Arbor University and later worked in finance at a casino before transitioning to writing professionally.

For this piece, I consulted Joseph Eck, CFP, owner of Stage Ready Financial Planning. Eck has extensive financial education and about 10 years of experience in the industry.

HELOC Methodology 

To find the best HELOC lenders, I analyzed 25 financial institutions, which included a mixture of banks, credit unions and fintech companies. The interest rate was the most heavily weighted factor, followed by the max LTV. Trustpilot and BBB ratings, as did mobile app ratings, also factored in substantially. I also considered other aspects, including fixed-rate options, fees for underwriting, closing and funding time, max credit limits, minimum credit score requirements and any other standout features or drawbacks. For more info, read Benzinga’s full mortgage methodology.

Frequently Asked Questions

Sources

1. Joseph Eck, CFP, owner of Stage Ready Financial Planning, via email interview on Dec. 27, 2024.

1. Experian, “How to Get a HELOC,” retrieved on Jan. 5, 2025.

1. HELOC lender information sourced from company websites, including Bethpage Federal Credit Union, Figure, Navy Federal Credit Union, Lower, PenFed Credit Union and Better.

1. Review data sourced from the Better Business Bureau, Trustpilot, Apple App Store and Google Play.