How does a HELOC differ from a home equity loan?

A HELOC is a revolving line — you can borrow, repay, and re-borrow during the draw period, and your rate is variable. A home equity loan is a one-time lump sum at a fixed rate, amortized like a mortgage. HELOCs are better when you don't know the exact amount you'll need; home equity loans are better when you do.

What's the typical draw period?

Most HELOCs offer a 5-10 year draw period (you can borrow during this window) followed by a 10-20 year repayment period (no more borrowing; pay down principal + interest). Some lenders allow interest-only payments during the draw period; others require minimum principal repayment from day one.

HELOC rates are typically the Wall Street Journal prime rate plus a margin (e.g., prime + 0.5%). The margin is set at origination and stays the same; the prime rate floats with the federal funds rate, so your payment can change month-to-month.

What's the minimum credit score for a HELOC?

Most major lenders require 680+ for HELOCs. Some accept 660 or below with strong compensating factors (high equity, low DTI, significant reserves). The best rates require 720+ scores.

How does a HELOC differ from a home equity loan?

A HELOC is a revolving line — you can borrow, repay, and re-borrow during the draw period, and your rate is variable. A home equity loan is a one-time lump sum at a fixed rate, amortized like a mortgage. HELOCs are better when you don't know the exact amount you'll need; home equity loans are better when you do.

What's the typical draw period?

Most HELOCs offer a 5-10 year draw period (you can borrow during this window) followed by a 10-20 year repayment period (no more borrowing; pay down principal + interest). Some lenders allow interest-only payments during the draw period; others require minimum principal repayment from day one.

HELOC rates are typically the Wall Street Journal prime rate plus a margin (e.g., prime + 0.5%). The margin is set at origination and stays the same; the prime rate floats with the federal funds rate, so your payment can change month-to-month.

What's the minimum credit score for a HELOC?

Most major lenders require 680+ for HELOCs. Some accept 660 or below with strong compensating factors (high equity, low DTI, significant reserves). The best rates require 720+ scores.

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Best HELOC Lenders for Flexible Home Equity Access

Variable-rate revolving access. Draw what you need.

A HELOC works like a credit card secured by your home — borrow what you need during a 5-10 year draw period, then enter a 10-20 year repayment phase. Compare lenders by introductory rate, ongoing margin over prime, and minimum-draw rules.

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Alpha Lending539 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Lowest APR

Theta Loans951 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Fast funding

Beta Financial1,363 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Bad credit

Eta Lending1,775 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Large loans

Gamma Bank2,187 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Customer service

Epsilon Direct2,599 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Soft credit pull

Iota Mortgage3,011 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for No origination fee

Zeta Capital3,423 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Repeat borrowers

Kappa Trust3,835 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

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APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Best for Branch network

Delta CU4,247 reviews by Trustpilot

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APR: 5.99%–29.99% APR
Loan amount: $1,000 to $100,000

8.4

Very good ⌄

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More Details:

APR

5.99%–29.99% APR

Loan amount

$1,000 to $100,000

Term

12–84 mo

Min credit

580+ credit

Our Top Choice

Frequently asked questions

How does a HELOC differ from a home equity loan?
A HELOC is a revolving line — you can borrow, repay, and re-borrow during the draw period, and your rate is variable. A home equity loan is a one-time lump sum at a fixed rate, amortized like a mortgage. HELOCs are better when you don't know the exact amount you'll need; home equity loans are better when you do.
What's the typical draw period?
Most HELOCs offer a 5-10 year draw period (you can borrow during this window) followed by a 10-20 year repayment period (no more borrowing; pay down principal + interest). Some lenders allow interest-only payments during the draw period; others require minimum principal repayment from day one.
How is the rate set?
HELOC rates are typically the Wall Street Journal prime rate plus a margin (e.g., prime + 0.5%). The margin is set at origination and stays the same; the prime rate floats with the federal funds rate, so your payment can change month-to-month.
What's the minimum credit score for a HELOC?
Most major lenders require 680+ for HELOCs. Some accept 660 or below with strong compensating factors (high equity, low DTI, significant reserves). The best rates require 720+ scores.

Best HELOC Lenders for Flexible Home Equity Access

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Frequently asked questions

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