Best Home Equity Loan Lenders of 2024

With a home equity loan, you can borrow against the value of your property to fund renovations, start a business, consolidate debt or cover any other major expense.

Home equity loans have lower interest rates than personal loans or credit cards — and if you use the funds on home improvements, you may be able to write off the interest.

CNBC Select has picked the best lenders for home equity loans in a variety of categories. (See our methodology for more information.)

Who’s this for? Discover only requires borrowers to have 10% equity in their home, much less than most lenders.

Standout benefits: Discover has lower-than-average interest rates on home equity loans and doesn’t charge a lender fee or closing costs, which can save you up to 6% of your loan total.

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Who’s this for? If Third Federal is unable to provide you with a lower mortgage rate, it will
pay you $1,000 after you close with its competitor on the quoted terms and time frame.

Standout benefits: Unlike many lenders, Third Federal offers both fixed- and adjustable-rate loans and allows borrowers to use a vacation home as collateral.

Who’s this for? TD Bank accepts home equity loan applicants with scores as low as 660, compared to the 680 most lenders require.

Standout benefits: TD Bank is also great for small loans. You can take out as little as $10,000 (or as much as $500,000). Its origination fee is $99, less than most lenders.

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Who’s this for? Existing customers can receive a rate discount of 0.25% when they set up autopay with a Flagstar bank account.

Standout benefits: Flagstar doesn’t charge closing fees and approves home equity loans for as little as $10,000 and as much as $1 million, compared to a range of $35,000 to $300,000 with many lenders.

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Who’s this for? While most lenders cap loans at 85% of your home equity, Rocket Mortgage will go as high as 90%.

Standout benefits: Rocket’s website provides clear rate and term information, and its mobile app is easy to use. The lender is known for exceptional customer service and is highly rated by JD Power and the Better Business Bureau.

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Discover Bank started in 1985, when big box retailer Sears added financial services. Today, Discover issues credit cards, checking and savings accounts, loans and other financial products. In February 2024, Capital One announced its plan to acquire Discover.

Minimum/maximum loan amount
$35,000 to $300,000

Repayment terms
10, 15, 20 or 30 years

Loan-to-value ratio
90%

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Founded in Cleveland in 1938, Third Federal went public in 2007. It operates in 20 U.S. states but only issues home equity loans in California, Florida, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and Virginia.

Minimum/maximum loan amount
$10,000 to $300,000

Repayment terms
Fixed-rate: 5 or 10 years, adjustable-rate: 30 years

Loan-to-value ratio
79.99%

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Dating back to 1852, TD Bank is the tenth largest bank in the U.S. by consolidated assets, according to the Federal Reserve. It issues home equity loans in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and Washington, D.C..

Minimum/maximum loan amount
$10,000 to $500,000

Repayment terms
5, 10, 15, 20 or 30 years

Loan-to-value ratio
89.99%

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Founded as First Security Savings Bank in 1987, Flagstar was acquired by New York Community Bank in 2022 and currently has 390 locations across 10 states. It earned an A- from the Better Business Bureau, but ranked below average on the J.D. Power 2024 U.S. Mortgage Servicer Satisfaction Study.

Minimum/maximum loan amount
$10,000 to $1 million 

Repayment terms
10, 15 or 20 years

Loan-to-value ratio
80%

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The second largest mortgage provider in the U.S., online lender Rocket Mortgage originated nearly 289,000 home loans in 2023, worth $78 billion. It was ranked second for customer satisfaction with mortgage origination by J.D. Power and came in first for mortgage servicing.

Minimum/maximum loan amount
$45,000 to $500,000

Repayment terms
10 or 20 years

Loan-to-value ratio
90%

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A home equity loan is a kind of second mortgage — a lump sum loan backed by your home’s value. Not all lenders offer home equity loans, but borrowers are attracted to them because they have lower interest rates than credit cards or personal loans.

Most lenders approve home equity loans for 80% of the house’s value, but some go as high as 85% or even 90%. And while you typically need 20% equity for approval, some lenders accept 15%.

A home equity loan can be a good option if you need to renovate, pay for education or have a medical emergency. Since your house is collateral, however, you could lose your home if you fail to make timely payments.

Some lenders are more flexible: For example, TD Bank approved home equity loans for borrowers with credit scores as low as 640, while Rocket Mortgage accepts applicants with as little as 10% home equity.

There are several alternatives to home equity loans, some of which won’t use 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.

A HELOC might be better than a home equity loan if you have a large, ongoing project or renovation expense and are unsure how much you will need. During your draw period, you can withdraw as many times as you need up to your limit.

Home equity sharing

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

Here’s how it works: An investor pays you for a portion of your home. That amount is due 30 years later or whenever you sell (whichever comes first). You won’t have to make payments until then and you won’t have to pay interest.

Instead, the investor uses a risk adjustment rate to levy an interest-like payment on the property. Depending on if and how much your house has appreciated, this amount could be far higher than what you’d pay on a home equity loan or HELOC.

Home equity sharing agreements typically have laxer credit requirements, so they appeal to homeowners who are cash-poor or have weak credit. And the one-time repayment means that you won’t need to come up with extra money every month. But your investor can foreclose on your property if you fail to pay when the term is due.

Cash-out refinance

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

Unlike other forms of financing, you’ll only have one payment — and your rate will probably be lower. But you’ll typically need to have at least 20% equity and a 620 credit score to get a cash out refinance.

Personal loan

A personal loan is an unsecured debt, so your home isn’t at risk of foreclosure. In addition, the credit score requirements are usually more generous. Lenders usually cap personal loans at $50,000 or $100,000, however, and they typically have higher interest rates and shorter repayment terms. In addition, you won’t be able to deduct the interest on a personal loan even if you use it for home renovations.

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CNBC Select analyzed dozens of U.S. lenders to determine which home equity lenders were the best. When narrowing down and ranking the best home equity loans, we focused on the following features: 

Fees: Common fees include origination fees, application fees, underwriting fees, processing fees, administrative fees and closing costs. We evaluate these fees in addition to other features when determining the overall offer from each lender.  Loan amounts/terms: To determine the best home equity lenders, we also considered a lender’s interest rate, maximum and minimum loan amounts and maximum loan-to-value ratio.Approval requirements: Lenders were eviewed based on maximum debt-to-income ratio, minimum home equity allowed and credit score needed, among other cited requirements.Streamlined application process: We considered whether lenders offered an online application process and/or an in-person procedure at local branches.  Customer support: Every mortgage lender on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances. 

We sorted our choices by best for low equity, for fair credit, for high loan-to-value ratio and for large and small loan amounts.

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

Rates and fee structures cited for mortgages may fluctuate in accordance with the Fed rate and company policies.