Best HELOC Lenders 2026: Lowest Rates and Flexible Terms

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A HELOC lets you tap your home equity when you need it. But not all lenders are the same. Rates, fees, and draw terms vary a lot.

Here are the best HELOC lenders for 2026, based on APR ranges, draw periods, and credit score requirements.

Best HELOC Lenders 2026: Quick Comparison

Lender APR Range Draw Period Min. Credit Score
Figure 8.45% – 14.99% 2, 3, 5 yrs 640
Bethpage FCU 7.99% – 10.49% 10 years 670
Bank of America 8.60% – 10.20% 10 years 660
PNC Bank 8.50% – 11.50% 10 years 660
U.S. Bank 8.70% – 12.25% 10 years 660
Third Federal 8.24% – 9.99% 10 years 680

Rates as of May 2026. APRs are representative and may vary by location, credit profile, and LTV.

Best for Fast Funding: Figure

Figure is an online lender. It uses automated appraisals to close in as few as 5 business days. Rates start around 8.45%. The draw periods are shorter than traditional HELOCs (2, 3, or 5 years). You get the full line upfront, like a loan. Best for people who need cash quickly.

Best Credit Union Rate: Bethpage FCU

Bethpage Federal Credit Union often has some of the lowest HELOC rates available. You must become a member, but anyone can join with a small deposit. It offers a traditional 10-year draw period and no closing costs on most products.

Best Big Bank Option: Bank of America

Bank of America is a solid choice for existing customers. Preferred Rewards members get rate discounts. The bank offers HELOCs in most states and has a straightforward online application. No annual fee and no closing costs on most products.

Best for Low Intro Rate: Third Federal

Third Federal has consistently low rates among traditional lenders. It serves a limited number of states. If you qualify, it’s worth checking. It also has no closing costs and no annual fee.

What to Look for in a HELOC Lender

  • APR: Compare the full annual percentage rate, not just the intro rate
  • Draw period: Standard is 10 years. Some online lenders offer shorter terms
  • Fees: Watch for annual fees, prepayment penalties, and inactivity fees
  • Closing costs: Many lenders waive these — always ask
  • Rate caps: Variable HELOCs should have a lifetime rate cap

How to Qualify for the Best HELOC Rate

Lenders look at three things:

  1. Credit score: 720+ gets the best rates
  2. Loan-to-value (LTV): Having 25%+ equity helps
  3. Debt-to-income ratio: Under 43% is the standard cutoff

Check your debt-to-income ratio before applying. Before you borrow, make sure you understand your total home-related costs using our mortgage payment calculator.

HELOC vs Other Home Equity Options

Not sure a HELOC is right? Compare your options:

  • Home equity loan: Fixed rate, lump sum — better for one-time costs
  • Cash-out refinance: Replaces your mortgage with a larger one — best when rates are low
  • Personal loan: No home collateral needed — but higher rates

See our full breakdown: HELOC vs Home Equity Loan: Which Is Better in 2026?

Frequently Asked Questions

What credit score do I need for a HELOC?

Most lenders require at least 620. To get the best rates, aim for 720 or higher.

How much can I borrow with a HELOC?

Most lenders allow up to 80%–85% combined loan-to-value. That means your mortgage plus the HELOC cannot exceed 80%–85% of your home’s value.

Are HELOC rates fixed or variable?

Most HELOCs have variable rates tied to the prime rate. Some lenders (like Figure) offer fixed-rate HELOCs. Check before you apply.

Can I get a HELOC if I already have a second mortgage?

It depends on your equity. If you have enough equity and your combined LTV is within limits, some lenders will still approve you.

Is a HELOC a good idea right now?

It depends on your needs and how you plan to use the funds. For home improvements or ongoing expenses, a HELOC offers flexibility. Just be aware that rates are variable and could rise.