How To Get the Fastest HELOC Closing Times
If you’re in a cash crunch and want to tap your home equity — and fast — your best bet is a lender that specializes in quick closings. You’ll get your funds the fastest when using a home equity line of credit (HELOC), but a home equity loan typically won’t take much longer. A cash-out refinance is another popular choice, but this will be the slowest way to get your cash.
We’ll cover which lenders are known for the fastest HELOC closing times, as well as some steps you can take to make the process quicker, regardless of which lender you choose.
The fastest HELOC lenders of 2024
Guaranteed Rate: 5 days to close
Guaranteed Rate advertises that it can approve you for a HELOC in five minutes and close the loan in five business days. They’re able to offer quick turnaround because they have a digital closing process, which includes electronic signing through a remote notary.
Maximum loan amount: $400,000
Draw period: 2-5 years
Read our Guaranteed Rate mortgage review to see if this lender is a good fit for you.
Figure: 5 days to close
Figure also offers a HELOC with five-minute approval and five-day closing. The company has used automated underwriting to issue over $10 billion dollars worth of HELOCs since 2018. Unlike most HELOC lenders, though, Figure doesn’t offer a variable-rate HELOC. Instead, you’ll have a fixed rate for the original draw (which must be 100% of your credit line) and a new fixed rate for any subsequent draws.
Maximum loan amount: $400,000
Draw period: 2-5 years
Learn more about how and where you can get the best HELOC rates.Better Mortgage: 7 days to close
Better Mortgage has a One Day HELOC™ program allows you to apply online and get approved within 24 hours. You’ll then get your cash within seven days. To get a HELOC this quickly, you’ll need to upload all of your documentation within 24 hours of applying and keep your loan amount under $400,000.
Maximum loan amount: $500,000
Draw period: 3 years
Read our Better Mortgage review to see if this lender is a good fit for you.Spring EQ: 2-3 weeks to close
Spring EQ can convert your home equity to cash within 14 to 21 business days. Their HELOCs go up to $500,000 and offer interest-only payments for the first 10 years.
Maximum loan amount: $500,000
Draw period: 3 years
Read our Spring EQ mortgage review to see if this lender is a good fit for you.3 tips for getting the fastest HELOC closing
1. Know how much money you’ll qualify to borrow
Most HELOC lenders set a cap on how much you can borrow, typically 85% of your home’s value. If you’re hoping to borrow more than that, but you haven’t specifically sought out a high-LTV HELOC program, this could delay your loan’s approval and funding.
Use our HELOC and home equity loan calculator to help you quickly find how much you may be able to borrow, based on the 85% standard.2. Choose a lender with an AVM
An automated valuation model (AVM) is a computer program that evaluates how much your house is worth. HELOC lenders who use an AVM can typically close more quickly because they don’t have to arrange for someone to come out and appraise your house in person.
Many lenders mention their automated systems on their websites, but if you’re not sure how a given lender deals with home appraisals, the quickest way to find out is to call customer service.
3. Have all your financial documents ready to go
How fast you can close on a HELOC depends on both the lender and on you as the borrower. No matter how fast a lender is able to underwrite a HELOC loan, if they don’t have all of your documents, they won’t be able to process your loan quickly. Make sure you have everything ready — you’ll usually need to provide documentation of your income, assets and employment in addition to details about your home and mortgage.
How to qualify for the fastest HELOCs
→ Minimum equity in your home: 15%
→ Loan-to-value (LTV) ratio maximum: 85%
→ Minimum credit score requirement: typically 620 or higher
→ Debt-to-income (DTI) ratio maximum: 43%
Don’t know your credit score? Get your free score on LendingTree Spring today.Which has the fastest closing: HELOCs, home equity loans or cash-out refinances?
The most common options for tapping the equity in your home are a HELOC, home equity loan or cash-out refinance. Home equity loans and HELOCs have roughly similar closing timelines, whereas a cash-out refinance will often take longer.
| Type of loan | Typical time to close |
|---|---|
| Home equity line of credit (HELOC) | Two to six weeks |
| Home equity loan | Two to eight weeks |
| Cash-out refinance | Six weeks |
Keep in mind, though, that these are just the typical times across all lenders. There are lenders who advertise shorter turnaround times, and if you need a fast closing, you should seek out the lenders listed above.
A cash-out refinance replaces your current mortgage with a new loan at a higher amount than what you currently owe. The new mortgage pays off the existing loan balance, and you receive the difference in one lump sum. You have three different cash-out refinance programs to choose from: conventional cash-out refinances, FHA cash-out refinances and VA cash-out refinances.
See today’s refinance mortgage rates and best lenders to compare offers on LendingTree.Alternatives to tapping home equity to get cash quickly
One major drawback to borrowing money against your home equity is that it puts your home at risk. If you can’t afford your payment, your lender may decide to foreclose. If you’d prefer not to secure another loan against your home, or don’t have enough equity to do so, you do have other options.
Personal loan
Personal loans are fixed-rate installment loans consumers can use for any reason. Borrowing with a personal loan may be faster than tapping into home equity — you could get approved within hours of applying and sometimes receive the funds within 24 hours with a quick loan. They’re also less risky for borrowers, since most personal loans are unsecured, meaning you won’t have to use your home as collateral.
However, interest rates on personal loans are generally much higher than on home equity products. And only borrowers with the best credit scores qualify for competitive rates.
Repayment terms are usually shorter than home equity financing — often between three and seven years.
Learn more about personal loan requirements to see if you qualify.
Credit card
Credit cards can be an easy and fast way to access funds. If you’re applying for a new card, you can often get same-day approval, which beats out even the fastest HELOC closing. And if you qualify, you could get access to a high credit limit. However, using a credit card to fund a large purchase or ongoing expense is a costly way to borrow — unless you pay off your balance in full each month — with average APRs in the double digits.
Learn more about how to apply for a credit card to get started.