Although most home equity lenders let you tap up to 85% of your home’s value, some lenders may offer high-LTV home equity loans that allow you to borrow more. Use our home equity loan calculator to estimate your home equity borrowing power.
LOAN AMOUNT |
APR AS LOW AS |
|
$25,000 |
7.13% |
|
$50,000 |
6.88% |
|
$100,000 |
6.88% |
|
$150,000 |
6.88% |
There are a variety of different home equity loan lenders to choose from, and each of them set their own approval guidelines. Generally, the guidelines are a bit more strict than traditional mortgages, so you should strive to:
Although it’s possible to get a home equity loan with bad credit, you may not qualify for as much as you need or want. Lenders may reduce your maximum LTV ratio and likely charge you a significantly higher interest rate. If your scores are below 620, consider a government-backed program like an FHA cash-out refinance or VA cash-out refinance.
Lender | LendingTree rating | Available features | Rate spread
Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan.
| Lender review |
|---|---|---|---|---|
 | 680 min. credit score 90% LTV with higher score $45K min. draw | 0.42% Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan. | ||
 | 5- to 30-year terms No-closing-cost options 100% LTV for qualified borrowers | 0.51% Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan. | ||
 | 5- to 30-year terms $10K to $500K loan amounts 0.25% rate discount for eligible borrowers | 0.24% Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan. | ||
 | 5- to 30-year terms 0.50% rate discount for eligible borrowers No upfront fees | 0.85% Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) each lender offered to mortgage customers in 2022. The higher the number, the more expensive the loan. | ||
 | 5- to 30-year terms $500K max loan amount 14-day closings possible | Not available |
Read more about how we gathered our best lenders list
| Available home equity loan terms | Home equity loan features | LendingTree rating |
|---|---|---|
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|  Read review |
Rocket Mortgage offers a home equity loan for borrowers with credit scores as low as 680, though you’ll need at least a 760 score to borrow up to a 90% LTV. Rocket also offers the option to combine your first and second mortgage down the road with a cash-out refinance.Don’t see a home equity lender featured? Consider our cash-out refinance lender choices.
| Available home equity loan terms | Home equity loan features | LendingTree rating |
|---|---|---|
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|  Read review |
| Available home equity loan terms | Home equity loan features | LendingTree rating |
|---|---|---|
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|  Read review |
| Available home equity loan terms | Special home equity loan features | LendingTree rating |
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| Read review |
| Available home equity loan terms | Home equity loan features | LendingTree rating |
|---|---|---|
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| Read review |
In many ways, a home equity loan works like a regular, fixed-rate first mortgage.
Terms usually range between five and 30 years, and most lenders set a maximum LTV ratio, which measures how much of your home’s value is borrowed. Most lenders cap your LTV ratio at 85%
Our home equity loan calculator can do the math for you. You just need three pieces of information:
The results are based on a maximum LTV ratio of 85%.
In order to get a home equity loan you’ll need to meet the following home equity loan requirements:
*This is the standard LTV ratio maximum. However, some home equity lenders let you borrow up to 100% of your home’s value.
Yes, if the funds from the home equity loan are used for home improvements, you can deduct the interest from your taxable income.
You can use home equity loans for just about anything, including:
Ready to tap your home equity? Compare Free Loan Offers
| Pros | Cons |
|---|---|
You’ll pay lower interest rates than those on credit cards or personal loans | You’ll pay a higher rate than a cash-out refinance |
Your payment will be fixed and stable each month | You’ll reduce the available equity in your home |
You may be able to deduct home equity loan interest from your tax bill | You’ll have two monthly house payments |
Your closing costs are typically lower than a cash-out refinance | You could lose your home if you default on your payments |
You can use the money for any purpose | You’ll need higher scores and lower debt to qualify for the best rates |
Although most home equity lenders let you tap up to 85% of your home’s value, some lenders may offer high-LTV home equity loans that allow you to borrow more. Use our home equity loan calculator to estimate your home equity borrowing power.
You’ll typically spend between 2% and 5% of your home equity loan amount on closing costs. Local banks or credit unions may offer special discounts if you open a checking or savings account and have your payment debited directly from your account.
It may take two to four weeks to close on a home equity loan. You’ll usually receive your funds following a three-business-day waiting period after your closing.
Home equity loan rates are often higher than interest rates on traditional mortgages. Usually, the more you borrow, the higher your rate will be. Your credit score also has an impact on the rate you’re offered.
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