Best Home Equity Loan Lenders of December 2025

Rapid home price appreciation and low inventory mean American homeowners are sitting on substantial home equity. In the second quarter of 2025, mortgage holders carried $11.5 trillion in “tappable” equity, meaning it’s available to borrow while still maintaining at least a 20% equity cushion.

Individually, homeowners are sitting on an average of $212,000 of tappable equity, according to Intercontinental Exchange.

With a home equity loan, you can borrow against your home’s value to pay bills, start a business or cover other expenses. Rates on home equity loans are lower than those for personal loans or credit cards, and if the funds are for home improvements, you can deduct the interest on your taxes.

CNBC Select has selected the best lenders for home equity loans across a number of categories.

For more on how we made our picks, see our methodology.

Who’s this for? First Access Lending offers a maximum home equity loan draw of $850,000, higher than average.

Standout benefits: First Access offers home equity loans to non-traditional borrowers, including the self-employed, second-home owners and investors.

Who’s this for? Rocket Mortgage was the highest-ranked mortgage provider in J.D. Power’s 2025 mortgage servicing customer satisfaction survey and consistently ranks above average in these surveys.

Standout benefits: Rocket Mortgage offers fixed-rate HELOANS of between $45,000 and $500,000, compared to $35,000 to $300,000 with most lenders. It’s known for its exceptional customer service and easy-to-use website and mobile app.

Who’s this for? Third Federal‘s Lowest Rate Guarantee means it will beat a credible competitor’s rate for a home equity loan or pay you $1,000 after you close with a comparable loan amount, terms and fees.

Standout benefits: Unlike most lenders, Third Federal offers both fixed- and adjustable-rate HELOANS. Borrowers can also use their vacation homes as collateral.

Who’s this for? While most lenders require a FICO score of 680 or higher for a home equity loan, TD Bank accepts applicants with scores as low as 660.

Standout benefits: TD Bank is ideal for small loans, allowing borrowers to take out as little as $10,000. It also has a relatively low origination fee of $99. Typically, the minimum is between $25,000 to $40,000.

Who’s this for? Connexus Credit Union offers loans starting at $5,000, compared to the $10,000 minimum set by most lenders. That makes it an excellent option if you’re looking for a quick infusion of cash for a small project.

Standout benefits: Connexus is transparent about its low rates and offers a 90% loan-to-value ratio, which is higher than most lenders.

Who’s this for? Existing Flagstar customers can receive a 0.25% rate discount on a home equity loan if they set up autopay through their checking or savings account.

Standout benefits: Flagstar doesn’t charge closing costs on home equity products and approves loans ranging from $10,000 to $1 million.

A home equity loan is a type of second mortgage secured by the value of your home, typically provided as a lump sum. It can be a good option if you need to renovate, pay for education or cover medical expenses. Since your house is used as collateral, however, you could face foreclosure if you fail to make timely payments.

Not all lenders offer home equity loans, but borrowers are drawn to lower interest rates than those for credit cards or personal loans.

Home equity loans are typically approved for borrowers with credit scores of 680 or higher and 20% home equity, although some lenders are more flexible. For instance, TD Bank approves loans for borrowers with credit scores as low as 660, while Rocket Mortgage accepts applicants with as little as 10% home equity.

There are several alternatives to home equity loans, some of which don’t use your home as collateral.

Home equity line of credit (HELOC)

HELOCs are secured lines of credit that use your home as collateral. There’s typically a 10-year draw period and a 20-year repayment period. Because a HELOC is backed by your home, the lender could force you into foreclosure if repayment terms aren’t met.

A HELOC may be a better option if you have a large, ongoing project and are unsure of the exact amount you’ll need. During your draw period, you can withdraw as many times as you need up to your limit.

Home equity sharing

With a home equity-sharing agreement, homeowners get cash in exchange for a slice of their home’s future value.

Here’s how it works: An investor lends you a portion of your home’s value, with payment due after 30 years or when you sell (whichever comes first). Instead of interest, though, you’re assessed a risk adjustment rate at the end of your term.

Home equity sharing agreements have more flexible approval requirements, making them appealing to homeowners who are cash-strapped or have poor credit.

However, depending on how much your house has appreciated over the years, the risk adjustment amount could be far higher than the interest on a traditional home equity loan or HELOC.

Cash-out refinancing

With a cash-out refinance, you replace your original mortgage with a larger loan. After the original balance is paid off, you can take the remainder in cash.

Rates are usually lower than other forms of refinancing, but you typically need at least 20% equity and a credit score of 620 to qualify for a cash-out refinance.

Personal loan

A personal loan is an unsecured debt, so your home isn’t at risk, and credit score requirements are usually more lenient. Lenders typically cap personal loans at $50,000 or $100,000, but interest rates are generally higher, and repayment terms are shorter.

In addition, you can’t deduct the interest on a personal loan from your taxes, even if you use it for home renovations.

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CNBC Select analyzed dozens of U.S. lenders that offer home equity loans, focusing on: 

Loan amounts and terms: We considered lenders’ maximum and minimum loan amounts, the maximum loan-to-value ratio offered and the available repayment terms.

Approval requirements: Lenders were reviewed based on the maximum debt-to-income ratio allowed and the minimum home equity and credit score needed for approval.

Credit score: Most lenders require a FICO score of 680 or higher to secure a home equity loan. We noted if a lender had options for borrowers with scores below that threshold.

Fees: When possible, we noted if a lender had lower lender fees and closing costs, or if certain fees were discounted or waived.

Application process: We considered whether lenders offered an online pre-approval and application process, as well as whether they had physical branches for an in-person experience. 

Customer service: We gave more weight to lenders that scored highly on J.D. Power’s mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on these criteria, our recommendations for the best home equity loans are: