10 Best Home Equity Loans of October 2026

---

---

* Sample rates and APRs are subject to change. All information provided here is accurate as of September 29, 2026, and may change at any moment.

Our Top Picks for Best Home Equity Lenders of October 2026

• PNC Bank: Best Overall
• Figure: Best HELOC
• Connexus Credit Union: Best No-Appraisal Option
• Navy Federal: Best for Military Borrowers
• M&T Bank: Best for Low Rates
• Rate: Best for Investors
• Fifth Third: Best Flexible Rate Lock
• Bank of America: Best for No Fees
• Citizens Bank: Best for Small Loan Amounts
• Achieve: Best for Fast Funding

---

Pros

• Highest overall score in our review process
• Up to 89.99% LTV
• Lowest credit score minimum we found
• High loan amounts
• Low intro rate, fixed and variable rate options

Cons

• In-person appraisal is required
• Not available in all 50 states

---

---

HIGHLIGHTS

Product types:

HELOC, home equity loans

Maximum loan amount:

$1 million

Maximum LTV:

80% to 89.99%, depending on several factors

Terms:

10-year draw periods with 30-year repayment periods; 5 to 30 years for fixed-rate options; 5-year interest-only options

Interest rates:

5.74% intro APR for first six months on a $50,000 or more CHELOC. Application must be received by October 31 and closed by December 31. Then as low as 7.52% APR

Credit score minimum:

Over 600, though credit requirements can vary by borrower

Properties allowed:

Single-family homes, multi-family properties, condos, and mobile homes

Weighted score:

4.85 out of 5

---

Why we chose it: PNC Bank came out on top with a whopping 4.85 out of 5 score, making it the best-rated home equity product among the 60+ we analyzed. The bank offers large loan amounts, low credit score requirements (the lowest we found), and a variety of rate and term options.

---

Pros

• Low fixed rates
• Several term options
• Relatively low credit score requirements
• Fast funding time
• Typically, no in-person appraisal is required

Cons

• Not available in all 50 states
• Relatively low maximum loan amount
• LTV could be higher

---

---

HIGHLIGHTS

Product types:

HELOC

Maximum loan amount:

$750,000

Maximum LTV:

85%

Terms:

5, 10, 15, and 30 years

Interest rates:

Fixed rates as low as 7.35% APR

Credit score minimum:

640

Properties allowed:

Single-family homes, townhouses, planned urban developments (PUDs), most condos, and duplexes. Both primary and secondary residences can qualify.

Weighted score:

3.85 out of 5

---

Why we chose it: Figure, an online financial technology company, has our top HELOC. The line of credit comes with a low fixed interest rate and four term options, ranging from five to 30 years. Its minimum credit score is relatively low at 640, and you typically won’t need an in-person appraisal (the lender usually utilizes Automated Valuation Models, or AVMs, instead). And the best part? Many borrowers get their cash in as little as five days.

---

Pros

• No in-person appraisal required
• Low interest rates and credit score minimum
• Long draw period on HELOCs
• High LTV maximum

Cons

• No 30-year home equity loan options
• Not available in all 50 states
• Requires credit union membership

---

---

HIGHLIGHTS

Product types:

Home equity loans and HELOCs

Maximum loan amount:

Varies by state and borrower

Maximum LTV:

90%

Terms:

5, 10, and 15 years on home equity loans; 15-year draw and 15-year repayment on HELOCs

Interest rates:

4.99% intro APR until Apr. 1, 2027, and 5.49% APR until Oct. 1, 2027, then as low as 7.51% for standard HELOCs and 8.01% APR for interest-only HELOCs; fixed rates starting at 7.31% APR for home equity loans

Credit score minimum:

640

Properties allowed:

Primary residences, second homes, duplexes, townhomes, and two- to four-unit condos

Weighted score:

3.75 out of 5

---

Why we chose it: Connexus Credit Union is the place to look if you’re hoping to avoid the hassle and headache of an appraisal. You can obtain both home equity loans and HELOCs from the lender, and its low credit score minimum, 90% LTV maximum, and lengthy 15-year draw period on HELOCs are notable as well. You can even borrow against your second home if you have one — something not all home equity lenders allow.

---

Pros

• Offers both home equity loans and HELOCs
• Long draw period on HELOCs
• High maximum LTV
• Several term options
• No closing costs

Cons

• Only available to active and retired military, DoD employees and their families
• Credit score requirement could be lower
• No 30-year home equity loan options

---

---

HIGHLIGHTS

Product types:

Home equity loans and HELOCs

Maximum loan amount:

$500,000

Maximum LTV:

95% to 100%, depending on the product

Terms:

5, 10, 15, and 20 years for home equity loans; 20-year draw and 20-year repayment for HELOCs

Interest rates:

Fixed, starting at 7.34% APR on home equity loans; variable, starting at 7.00% APR on HELOCs

Credit score minimum:

650

Properties allowed:

Primary residences and second homes, as long as they’re within 50 miles of your primary residence

Weighted score:

3.55 out of 5

---

Why we chose it: Navy Federal’s home equity loans have several standout features that borrowers might find valuable. For those seeking extended access to cash, its HELOC is a good option, offering a 20-year draw period — longer than any other product we analyzed. If you’re hoping to tap a substantial amount of equity, consider a home equity loan, which offers up to a 100% LTV with no closing costs.

---

Pros

• Low interest rates
• Both variable and fixed rate options
• Loan amounts up to $1 million
• No closing costs

Cons

• Not available in all 50 states
• High credit score minimum

---

---

HIGHLIGHTS

Product types:

HELOC

Maximum loan amount:

$1 million

Maximum LTV:

85.99% for primary residences; 70.99% for vacation homes and manufactured homes

Terms:

10-year draw and 20-year repayment periods

Interest rates:

Intro rate of 5.24% APR for six months; variable rates starting at 5.94% APR after; three fixed-rate lock options available

Credit score minimum:

680

Properties allowed:

Primary residences, vacation homes, condos, townhomes, one- to four-unit properties, and manufactured homes

Weighted score:

3.5 out 5

---

Why we chose it: M&T Bank’s 5.24% intro rate can save you significantly on interest in the first six months of your loan — especially when considering how high the lender’s loan amounts go (up to $1 million). Borrowers also have three fixed-rate lock options available during their loan term and may elect interest-only payments during the draw period. One more notable detail: There are no application, closing or annual fees

---

Pros

• Investment properties and rentals allowed
• No closing costs
• Low fixed rates
• Low credit score requirement

Cons

• Short draw period
• Fairly low maximum loan amount
• Not available in all 50 states

---

---

HIGHLIGHTS

Product types:

HELOC

Maximum loan amount:

$400,000

Maximum LTV:

85%

Terms:

2 to 5-year draw and 5, 10, 15, or 30-year repayment period

Interest rates:

Starting at 7.00% APR

Credit score minimum:

640

Properties allowed:

Primary residences, second homes, investment properties, single-family rentals, condos, and townhomes

Weighted score:

3.25 out of 5

---

Why we chose it: For those looking to cash in on an investment property or rental home, Rate is a good option. The online lender, formerly Guaranteed Rate, allows you to borrow against primary residences, second homes, investment properties, single-family rentals, and more. The lender offers fixed interest rates, providing consistency throughout the five-, 10-, 15-, or 30-year term you choose. Most loans require no in-person appraisal.

---

Pros

• Rate lock option lets you choose the number and amount of monthly payments
• Low introductory interest rate
• High LTV value
• No closing costs

Cons

• Only available in 12 states, soon to expand to 15
• $95 fee to lock in rate

---

---

HIGHLIGHTS

Product types:

Home equity loans and HELOCs

Maximum loan amount:

$500,000

Maximum LTV:

90%

Terms:

30 years on loans. 10 year draw, 20 year repayment on a HELOC

Interest rates:

Rates vary for home equity loans; 4.99% APR introductory offer for first six months of a HELOC, then starting as low as 7.00% APR

Credit score minimum:

Varies with loan product

Properties allowed:

Owner-occupied residences, non-owner-occupied properties, and multi-unit properties

Weighted score:

3.55 out of 5

---

Why we chose it: Fifth Third’s flexible rate-lock option lets you secure a fixed interest rate on the lender’s Equity Flexline HELOC, locking in a favorable rate on part or all of the available line of credit. You choose how long to lock in the rate and how much to pay, which can help lower your monthly costs if you need some wiggle room.

---

Pros

• No fees
• Several rate discount options
• Wide availability

Cons

• $450 early closure penalty
• Slightly higher credit score requirement

---

---

HIGHLIGHTS

Product types:

HELOC

Maximum loan amount:

$1 million

Maximum LTV:

85%

Terms:

10-year draw period with 20-year repayment period

Interest rate:

Introductory 5.74% APR for first six months, then as low as 8.525% APR (including discounts)

Credit score minimum:

660

Properties allowed:

Primary residence, second homes, 1-4 unit residential property

Weighted score:

3.4 out of 5

---

Why we chose it: Bank of America doesn’t charge any application or annual fees, and it also doesn’t charge closing costs on its HELOC. You can also convert up to 90% of the credit line amount to a fixed rate with no conversion costs. The interest rate isn’t the lowest, but Bank of America offers several ways to get discounts, which means it can offer a competitive rate to borrowers who take full advantage.

---

Pros

• Fast application and funding
• Very few fees
• 0.25% rate discount with autopay

Cons

• Only available in 30 states
• Has borrower income limits

---

---

HIGHLIGHTS

Product types:

HELOC

Maximum loan amount:

$25,000

Maximum LTV:

85%

Terms:

10-year draw period with 15 year repayment period

Interest rates:

As low as 9.75% APR with autopay

Credit score minimum:

680

Properties allowed:

Primary residence, owner-occupied 1 to 4 unit multifamily property, condominium.

Weighted score:

3.5 out of 5

---

Why we chose it: Citizens‘ GoalBuilder HELOC makes our list as a good option for homeowners who only require a small amount of money. You can access $5,000 to $25,000 with a 10-year draw period and a 15-year repayment term. The lender doesn’t charge any closing costs or annual fees, and there is no prepayment penalty.

---

Pros

• Fast closing and funding times
• Up to 90% LTV
• No in-person appraisal required
• Low credit score requirement

Cons

• Short draw period of 5 years
• Available in only 31 states

---

---

HIGHLIGHTS

Product types:

HELOC, home equity loans

Maximum loan amount:

$700,000

Maximum LTV:

90%

Terms:

5 year draw period, 10, 15, 20 or 30 year repayment period

Interest rate:

Starting at 6.25% APR

Credit score minimum:

600

Properties allowed:

Owner occupied residential properties

Weighted score:

3 out of 5

---

Why we chose it: Achieve offers a fixed rate as low as 5.5% APR for its HELOC — one of the lowest starting interest rates available. They also offer some of the fastest closing and funding times among the companies we evaluated. You can close on a loan in as few as seven days and receive the funds within five days after closing. You can choose from Achieve’s flexible term options, which range from 10 to 30 years.

Other companies we considered

TD Bank

TD Bank was a top choice for the best overall home equity lender, offering both a HELOC and a home equity loan and scoring highly in our system. The lender offers a variety of term and rate options, and its loan amounts go up to $6 million.

Why we didn’t choose it: Its limited geographic footprint kept it from being a top choice for many borrowers.

Rocket Mortgage

Rocket Mortgage is often ranked among the top mortgage lenders thanks to its easy online application process, multiple loan options and high customer satisfaction ratings. They offer loans in all states and may be a good choice for someone seeking an online lender.

Why we didn’t choose it: Rocket’s home equity products have higher credit score requirements (you need a 740 to qualify for a 90% LTV) than those of other lenders we considered, and the company doesn’t advertise rates to help you gauge costs. In-person appraisals are also required, which increases the cost of accessing your equity.

SoFi

We also considered online bank SoFi for our list. The lender’s home equity loan offers several term options and loans of up to $350,000 for home improvements or debt consolidation.

Why we didn’t choose it: The minimum credit score of 680 is slightly higher than some other options we considered, and its interest rates are higher than those of other options we analyzed, so it ranks below other home equity loans on this list.

What you need to know about home equity loans

Homeowners have accumulated near-record levels of home equity over the past five years, driven by the rapid rise in home prices triggered by the pandemic-driven buying frenzy. According to data analytics firm Intercontinental Exchange (ICE), American mortgage holders held $18 trillion in home equity in August, with nearly $12 trillion considered tappable.

Kenon Chen, executive vice president of real estate analytics firm Clear Capital, tells Money that one of the first steps a homeowner must take when considering tapping into their equity is knowing their financial position. Homeowners should be know their home’s value and how market conditions in their area may be changing in ways that could affect their equity.

Equity products need to be repaid and add a monthly expense to your budget. Knowing “whether that’s sustainable for you is important,” Chen says.

If you’ve never tapped your home equity before, it can be a time-consuming process. Here’s how these loans work and how you can borrow from your equity successfully.

What is a home equity loan?

A home equity loan is a type of second mortgage — meaning it’s a loan you take out in addition to your main mortgage. It has its own terms, interest rate, and monthly payments. And, like your first mortgage, it uses your home as collateral, so if you fail to make payments, the lender can foreclose on your home.

HELOCs are a type of second mortgage, too. However, these two loans work very differently, even though they tap the same equity. A home equity loan works just like a regular loan you’d use to buy almost anything – you get a lump sum at closing to use for whatever expenses you want to cover.

With a HELOC, however, you’re actually turning your equity into something more like a credit card. Instead of receiving a lump sum payment that you have to repay at a set pace over a set amount of time, you can borrow up to the maximum amount of the HELOC, just like with a credit card, and just like with a credit card, you only pay for what you borrow.

How does a home equity loan work?

Home equity loans let you borrow from your home equity — or the portion of your home that you actually own. Typically, lenders will let you borrow up to 80 to 90% of your home’s value, minus the balance on your existing mortgage loan.

So, if your home is worth $300,000 and you have a mortgage balance of $150,000, you can expect to be able to tap between $90,000 and $120,000, depending on your lender’s limits.

Once you receive your cash, home equity loans work just like your primary mortgage. You’ll pay it off with set monthly payments over a long period, ranging from five to 30 years.

HELOCs have a slightly different repayment strategy. With these, you’ll usually make interest-only payments for the first few years of the loan, then full principal-and-interest payments once your credit line’s draw period ends.

Differences between HELOCs and home equity loans

HELOCs are less standardized than home equity loans, so they offer a wide range of payment options. This variety is why it’s so important to understand your HELOC terms before you sign on the dotted line.

In general, a HELOC works like this: your bank gives you a maximum amount that you’re allowed to borrow from your home’s equity, and treats it much like a credit card. You may even get a debit card you can use with your HELOC. You have a set period during which you can borrow from your credit line, typically from five to 15 years. Depending on your loan, you may be allowed to pay only the interest during this period.

Once the draw period ends, your loan amount is fixed. So, if you were given a $100,000 HELOC but used only $75,000 during your draw period, your final loan amount would be $75,000. At this point, your loan payment is calculated to pay off the principal in full before the end of your loan term. You’re then expected to pay full interest and principal for the rest of the loan’s life.

As for which option may work best for you, Chen says it depends on your goals. You should ask yourself whether you’re looking for short-, mid- or long-term funding.

“That helps you home in on what type of home equity product you might be looking for,” he says.

How to choose a home equity lender

Choosing the right home equity lender is critical to achieving your goals. Qualifying requirements vary by lender, as do loan amounts, product types, and more. Carefully consider the pros and cons of each option.

Your first step is deciding what type of product you want. Next, look at lenders that offer that product and compare costs and terms.

Chen also recommends checking with any lender you currently hold a loan with, especially if you have had a good experience with them. It could make it easier to visualize all your payments and manage them in a healthy way.

When choosing where to get your home equity loan, make sure to consider the following:

• Eligibility requirements, including credit score minimums and appraisal requirements.
• Property types allowed, especially if you’re considering borrowing against a second home, vacation property, or investment home (these are harder to find lenders for).
• Loan amounts and loan-to-value ratios, since these determine how much you’ll be able to borrow.
• Fees, rates, and repayment term options, since these factors will determine the overall cost of borrowing and the total interest you’ll pay.

You should consider customer reviews and ratings, too, as well as any regulatory actions or lawsuits against the company. You can find this information by searching the lender in the Nationwide Mortgage Licensing System (NMLS) database.

Pros and cons of home equity loans

---

Pros	Cons
Allows you to turn your home equity into cash	Adds a second mortgage payment to your household
Funds can be used for any purpose	Puts your home at risk of foreclosure if you don’t make your payments
Interest may be tax-deductible if you use the money to improve your house	Usually come with upfront closing costs and fees
Typically have lower rates than other types of consumer borrowing products	Could put you upside down on your house if it loses value

---

Alternatives to home equity loans

Home equity loans and HELOCs aren’t the only way for homeowners to borrow cash.

If you’re looking for other financing options — and aren’t sure which one makes the most sense for your situation — a mortgage professional or financial advisor can help you weigh the pros and cons. In the meantime, here are several alternatives worth considering:

Cash-out refinance

A cash-out refinance replaces your current mortgage with a new one with a larger balance. You receive the difference between the two balances as a lump-sum payment at closing. Fair warning, though: This loan replaces every aspect of your existing loan, including its rate and payment. This option may be ill-advised if rates have increased since you took out your current mortgage.

Personal loan or credit card

If you want to avoid using your home equity altogether, you can consider an unsecured personal loan or even a credit card. Just note that these typically come with much higher rates than home equity products (and mortgages in general), so they might not be a good option if you need to borrow a large amount or expect to carry the balance for an extended period.

Reverse mortgage

For eligible older homeowners, a reverse mortgage can provide another way to access their home equity. With these, the lender pays you from your equity — either as a lump sum, monthly, or as a line of credit. You won’t repay anything until you permanently move out or sell the house. If you pass away and your heirs wish to keep the house, they will need to arrange repayment of the reverse mortgage. Government-backed reverse mortgages are available to homeowners 62 and older, although some lenders offer proprietary options for homeowners as young as 55.

Latest home equity news

Home price growth has slowed but hasn’t come to a complete standstill. According to data analysis firm Intercontinental Exchange (ICE), price growth has accelerated for the past six months.

Most of that acceleration happened during the first half of the year, when mortgage rates were at their yearly lows and buyer demand ticked up. Growth has slowed over the past three months after rates began to climb.

Still, home prices are rising, which means many homeowners are also seeing an increase in home values. Home equity has reached record levels as a result of those increasing values. According to ICE, American mortgageholders had a record high $18 trillion in equity at the end of the second quarter this year. That equity is an asset that can be accessed and used to help pay for home improvements, education or even to beef up a retirement fund.

---

Home equity loan FAQs

What credit score do you need for a home equity loan?

A score between 620 and 640 is enough to qualify with most lenders, although a 680 score or higher will get you the lowest rates. Some lenders, such as PNC and Achieve, will accept a score as low as 600.

How much equity do I need to qualify for a home equity loan?

You need to have at least 15% to 20% equity in the home to qualify for a home equity loan. If your home is worth $300,000 and your outstanding mortgage balance is $150,000, you have $150,000 in equity, or 50%.

What disqualifies you from getting a home equity loan?

A debt-to-income ratio (DTI) above 43 %, not having enough equity and a credit score below the lender’s minimum requirement will disqualify you from getting a home equity loan. Keep in mind that the projected new loan payment counts toward your DTI.

How much are closing costs on a home equity loan?

Closing costs typically range between 2% and 5% of the loan amount. On a $100,000 loan, the closing costs would be between $2,000 and $5,000. Rocket Mortgage may charge up to 6% in closing costs, which would increase the amount due to $6,000.

What is the monthly payment on a $50,000 home equity loan?

At an 8% interest rate and a 10-year term, the monthly payment on a $50,000 home equity loan would be approximately $607. The payment increases to about $478 with a 15-year term.

Is a home equity loan tax deductible in 2026?

It is only tax-deductible if you use the proceeds to buy, build, or substantially improve your home. Otherwise, no. To qualify, your combined total debt, including your primary or secondary mortgage, cannot exceed $750,000, and you must itemize the deduction when you file taxes.

Is it a good idea to take equity out of your house?

That depends on your financial situation and what you’re using the funds for. If you’re using the money to improve your home or pay off higher-interest debts, then it can be a smart idea. Just make sure you can afford the monthly payments for the long haul.

---

Methodology

We evaluated dozens of banks, credit unions and online home equity lenders nationwide. We gathered data on product terms, qualifying requirements, interest rates, availability, and other benefits to identify the best options. We scored lenders on a one-to-five scale across five categories: interest rates (30%), loan terms (20%), credit score minimums (20%), loan-to-value ratio (15%) and maximum loan amounts (15%).

We considered companies that offered competitive interest rates, as these are among the primary factors influencing the cost of financing a home purchase.

• We assigned higher scores to lenders offering longer draw periods.
• We prioritized companies with lower credit score requirements because they make products available to a broader range of borrowers.
• We assigned higher scores to companies with higher loan-to-value ratios, thereby increasing the pool of borrowers eligible to use the products offered.
• We assigned higher scores to companies that offered higher loan amounts than their competitors.

Summary of our top picks for the 10 best home equity loans of October 2026

• PNC Bank: Best Overall
• Figure: Best HELOC
• Connexus Credit Union: Best No-Appraisal Option
• Navy Federal: Best for Military Borrowers
• M&T Bank: Best for Low Rates
• Rate: Best for Investors
• Fifth Third: Best Flexible Rate Lock
• Bank of America: Best for No Fees
• Citizens Bank: Best for Small Loan Amounts
• Achieve: Best for Fast Funding

More from Money

• Best No-appraisal Home Equity Loans of 2026
• Best Home Equity Sharing Companies of 2026
• How to Get a Home Equity Loan with Bad Credit