Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Advertiser Disclosure
By
Anna Baluch
Anna Baluch
Banking Expert
Anna Baluch is a freelance contributor to Newsweek’s personal finance team with a focus on personal loans, student loans, credit cards, and more. She has spent years writing for small businesses as well as large publications on various financial topics. Baluch lives in Cleveland, OH with her husband and two young daughters.
Read Anna Baluch's full bio
Reviewed By
Kristy Snyder
Kristy Snyder
Banking Expert
Kristy is a freelance contributor to Newsweek’s personal finance team. As an editor, Kristy has worked with sites like Bankrate, JPMorgan Chase and NextAdvisor to craft and hone content on banking, credit cards and loans. She’s also written for publications such as Forbes Advisor and U.S. News and World. In her spare time, Kristy loves traveling, hitting up rail trails and reading.
Read Kristy Snyder's full bio
Also known as a second mortgage, a home equity loan allows you to tap into your home equity to cover virtually any expense. Whether you’d like to renovate your home, consolidate debt or anything in between, it can be a great tool.
Fortunately, there are countless home equity lenders out there. If you’re looking for the largest home equity lenders that have extensive experience distributing home equity loans, you’re in the right place. Below, we’ll dive deeper into the top home equity lenders so you can choose the ideal option for your unique situation.
Our Methodology
Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.
Our Picks
- Best for High LTV Ratio: Rocket Mortgage
- Best for Small Loans: Regions Bank
- Best for Large Loans: Flagstar Bank
- Best for Low Rates: Third Federal Savings & Loan
- Best for Secondary Properties: TD Bank
- Best for Repayment Flexibility: U.S. Bank
- Best for Online Prequalification: BMO Harris Bank
- Best for Fast Funding: Spring EQ
- Best for Minimal Fees: Discover
- Best for In-Person Service: KeyBank
10 Largest Home Equity Lenders of 2024
We’ve done the heavy lifting for you and uncovered 10 of the largest home equity lenders. These lenders actively distribute home equity loans to homeowners across the country and will likely continue to do so in the future.
Best for High LTV Ratio
Rocket Mortgage
Loan Amounts
$45,000 to $350,000
Repayment Terms
10 or 20 years
Loan-to-Value Ratio
Up to 90%
Why We Chose It
With a home equity loan from Rocket Mortgage, you can borrow up to 90% of your home’s value, as long as you’re eligible. This is a huge plus if you have a large upcoming expense such as a home renovation. Read our Rocket Mortgage home equity loan review.
Pros
- Access to a Home Loan Expert
- Can borrow up to 90% of your home equity
- Secondary homes may qualify
Cons
- Unclear terms
- Good credit required
- High minimum loan amount of $45,000
Additional Information
- Up to $350,000 in funding
- Two repayment terms: 10 and 20 years
- Good credit required
- Must work with a Home Loan Expert to apply
- Available for primary and secondary homes
Best for Small Loans
Regions Bank
Loan Amounts
$10,000 to $250,000
Repayment Terms
10, 15 or 20 years
Loan-to-Value Ratio
Up to 89%
Why We Chose It
Regions Bank is a solid pick if you only want to borrow a small amount of money. Its home equity loans start at $10,000, which is a lot lower than the minimum loan limits of other lenders. With Regions, you can tap into the home equity you need without overspending.
Pros
- Competitive rates
- Chance to apply in person at a local branch
- Low minimum loan amount of $10,000
Cons
- Only available in select states
- Late fees
- Not for investment properties
Additional Information
- Can borrow up to $250,000
- Three repayment terms: 10, 15 and 20 years
- May apply online, via phone or in person
- No closing costs
- Transparent, fixed rates
Best for Large Loans
Flagstar Bank
Loan Amounts
$10,000 to $1 million
Repayment Terms
10, 15 or 20 years
Loan-to-Value Ratio
Up to 80%
Why We Chose It
Depending on your finances and the home equity you’ve built, you may qualify for a home equity loan of up to $1 million through Flagstar Bank. This is much more than most lenders offer, so Flagstar might be your best bet if you’d like to cover a number of large expenses.
Pros
- Can borrow up to $1 million
- Discount for enrolling in autopay
- No closing costs
Cons
- Only available in select states
- Unclear credit score requirements
- Only for primary residences
Additional Information
- Up to $1 million in funding
- Three repayment terms: 10, 15 and 20 years
- Autopay discount
- No closing costs
- 24/7 loan servicing
Best for Low Rates
Third Federal Savings & Loan
Loan Amounts
$10,000 to $300,000
Repayment Terms
5 to 30 years
Loan-to-Value Ratio
Up to 80%
Why We Chose It
A home equity loan from Third Federal Savings & Loan makes sense if low rates are your priority. You can choose from competitive fixed or adjustable rates. Plus, if you’re able to find a lower rate elsewhere, you’ll get rewarded with $1,000 via the Lowest Rate Guarantee program.
Pros
- Multiple home equity products available
- Can choose from fixed or adjustable rates
- May collect $1,000 if you find a lower rate
Cons
- Only available in 20 states and Washington, D.C.
- Unclear credit score requirements
Additional Information
- Traditional home equity loan or 5/1 adjustable-rate home equity loan
- Fixed or adjustable interest rates
- No closing costs or annual fees
- Lowest Rate Guarantee program
- No prepayment penalties
Best for Secondary Properties
TD Bank
Loan Amounts
$10,000 to $500,000
Repayment Terms
5 to 30 years
Loan-to-Value Ratio
Up to 89.99%
Why We Chose It
TD Bank’s home equity loans apply to both primary and secondary homes. Since many lenders limit their home equity loans to primary residences, TD Bank is worth considering if you have a vacation property or another home with equity.
Pros
- Repayment flexibility
- Primary and secondary homes qualify
- Low minimum loan amount of $10,000
Cons
- Only available in 15 states and Washington, D.C.
- Must close in person at a local branch
- $50 annual fee for loans greater than $50,000
Additional Information
- Up to $500,000 in funding
- Five repayment terms: 5, 10, 15, 20 and 30 years
- Available for primary and secondary residences
- Autopay discount
- Transparent, fixed rates
Best for Repayment Flexibility
U.S. Bank
Loan Amounts
$25,000 to $750,000
Repayment Terms
5 to 30 years
Loan-to-Value Ratio
Up to 80%
Why We Chose It
U.S. Bank lets you choose from five repayment terms so you can customize your home equity loan and repayments to meet your budget and needs. You’ll find that many other lenders only offer a few terms that might not work for your financial situation.
Pros
- Repayment flexibility
- Chance to prequalify online
- In-person application available
Cons
- High minimum loan amount of $25,000
- Not for trust-held properties
- Not available in all 50 states
Additional Information
- Up to $750,000 in funding or $1 million in California
- Five repayment terms: 5, 10, 15, 20 and 30 years
- Online prequalification tool
- Autopay discount
- No closing costs
Best for Online Prequalification
BMO Harris Bank
Loan Amounts
$25,000 to $150,000
Repayment Terms
5 to 20 years
Loan-to-Value Ratio
Up to 70%
Why We Chose It
BMO Harris Bank gives you the chance to prequalify online. You can check your rates and terms before you formally apply without any impact on your credit. All you have to do is plug in details about yourself and your property.
Pros
- Minimal fees
- Can prequalify and check your rates
- Available in most states
Cons
- Low maximum loan amount
- High minimum credit score requirement
- Not offered for investment properties or second homes
Additional Information
- Up to $150,000 in funding
- Online prequalification tool
- Autopay discount
- No application fees
- Low to no closing costs
Best for Fast Funding
Spring EQ
Loan Amounts
$25,000 to $500,000
Repayment Terms
5 to 30 years
Loan-to-Value Ratio
Up to 95%
Why We Chose It
If you need funds as soon as possible to pay for an emergency or planned expense, Spring EQ should be on your radar. You may receive your home equity loan as soon as 14 days from the date you apply.
Pros
- Repayment flexibility
- Fast funding
- Chance to prequalify
Cons
- Unclear fees
- Stricter requirements for self-employment borrowers
- Not available in all states
Additional Information
- Up to $500,000 in funding
- Five repayment terms: 5, 10, 15, 20 or 30 years
- Funding within 14 to 21 days
- May access up to 95% of your home value
- Online prequalification tool
- Quick, digital application process
Best for Minimal Fees
Discover
Loan Amounts
$35,000 to $300,000
Repayment Terms
10 to 30 years
Loan-to-Value Ratio
Up to 90%
Why We Chose It
With a home equity loan from Discover, you don’t have to worry about excessive fees. The lender doesn’t charge closing costs as well as other common fees like origination fees and application fees. Read our Discover home equity loan review.
Pros
- No closing costs and other fees
- Offered for condos and townhomes
- Repayment flexibility
Cons
- High loan minimum of $35,000
- Low loan maximum of $350,000
- 6- to 8-week closing process
Additional Information
- Up to $300,000 in funding
- Four repayment terms: 10, 15, 20 or 30 years
- Available for a variety of property types
- No closing costs
- No application or origination fees
Best for In-Person Service
KeyBank
Loan Amounts
$25,000 to $500,000
Repayment Terms
5 to 30 years
Loan-to-Value Ratio
Up to 80%
Why We Chose It
If you prefer to apply for and manage a home equity loan in person, KeyBank can be a good fit. There are traditional branches in 15 states. Of course, an online application is available if you’d like.
Pros
- Flexible repayment terms
- Rate discounts for borrowers in some areas
- Access to local branches
Cons
- High minimum loan amount
- Origination and early termination fees
- Only available in select states
Additional Information
- Up to $500,000 in funding
- Five repayment terms: 5, 10, 15, 20 and 30 years
- Autopay discount
- Special rates for borrowers in select communities
- Online or in-person application
Vault’s Viewpoint: Compare the Largest Home Equity Lenders of 2024
| Loan Amounts | Repayment Terms | Loan-to-Value Ratio | Credit Score Requirement | Online Application | |
| Rocket Mortgage | $45,000 to $350,000 | 10 or 20 years | Up to 90% | 680 | |
| Regions Bank | $10,000 to $250,000 | 10 to 20 years | Up to 89% | Not disclosed | ✔ |
| Flagstar Bank | $10,000 to $1 million | 10 to 20 years | Up to 80% | Not disclosed | ✔ |
| Third Federal Savings & Loan | $10,000 to $300,000 | 5 to 30 years | Up to 80% | Not disclosed | ✔ |
| TD Bank | $10,000 to $500,000 | 5 to 30 years | Up to 89.99% | Not disclosed | ✔ |
| U.S. Bank | $25,000 to $750,000 (up to $1 million in California) | 5 to 30 years | Up to 80% | 660 | ✔ |
| BMO Harris Bank | $25,000 to $150,000 | 5 to 20 years | Up to 70% | 700 | ✔ |
| Spring EQ | $25,000 to $500,000 | 5 to 30 years | Up to 95% | 640 | ✔ |
| Discover | $35,000 to $300,000 | 10 to 30 years | Up to 90% | 660 | ✔ |
| KeyBank | $25,000 to $500,000 | 5 to 30 years | Up to 80% | Not disclosed | ✔ |
Learn More About Home Equity Lenders
Here is some more information about home equity lenders and what you can expect if you choose one of the lenders on our list.
Who Are The Largest Home Equity Lenders?
The largest home equity lenders have been offering home equity loans for quite some time. They’re active originators of these loans so you can count on them for exceptional service and support. Most of these lenders also offer a variety of other products you may be interested in including mortgages, home equity lines of credit (HELOCs), cash-out refinancing, personal loans and more.
How Do Home Equity Lenders Work?
Once you apply for a home equity loan from a lender, they’ll consider factors such as your credit score and the amount of equity you have in your home. Upon approval, they’ll disperse a lump sum of money that you can use in any way you’d like.
In most cases, you’ll repay a home equity lender via a fixed interest rate over a set repayment term ranging from five to 30 years. Since home equity loans use your home as collateral, a lender may put your home into foreclosure if you default on your payments.
Who Are Home Equity Lenders Best For?
If you have an upcoming expense and you know exactly how much money you need, home equity lenders can help you out. They may make it easier to fund a small or large expense, such as a car repair or kitchen renovation.
You should consider a home equity lender if you’re looking to borrow anywhere from $10,000 to $500,000. You’ll need to have sufficient equity built up in your home (at least 20%) and feel confident you’ll be able to make your repayments.
Types of Home Equity Lenders
In general, there are three types of home equity lenders:
- Banks: Banks can be large, national banks or smaller, community banks. If you already have a relationship with an existing bank, see if they offer home equity loans. Some banks offer special discounts and perks to current customers.
- Credit Unions: Credit unions are member-owned, non-profit organizations. While you’ll have to join a credit union to take advantage of a home equity loan or any other product, you may be able to lock in lower rates than you would at a bank. Fortunately, there are many credit unions with flexible membership requirements.
- Online Lenders: Online lenders have simple applications and faster approvals. You might want to explore an online lender if you’re in search of a digital process and can’t wait long for the funds.
How to Choose a Home Equity Lender
As you shop around for a home equity lender, consider the following:
Interest Rate
Ideally, you’d choose a lender that offers low interest rates. The lower your interest rate, the less you’ll spend on your home equity loan overall. A good interest rate can save you hundreds or even thousands of dollars over the life of the loan.
Borrowing Amounts
Once you determine what you’ll do with the proceeds from a home equity loan, you’ll need to find a lender that will lend you enough money. Fortunately, many lenders offer loans that go up to $500,000 or even $1 million. If you have a smaller expense, look for a lender with a lower loan minimum like $10,000. Otherwise, you may be tempted to overspend.
Fees
Fees can increase your cost of borrowing. That’s why it’s a good idea to find a lender with minimal to no fees. The good news is many lenders don’t charge origination fees, application fees or closing costs. Before you sign on the dotted line, read the fine print and make sure you’re aware of any fees you may have to pay.
Other Home Equity Lender Alternatives
Connexus Credit Union
Connexus Credit Union offers a variety of products, including home equity loans that start at $5,000, to members in every state except Maryland, Texas, Hawaii and Alaska. You may borrow up to 90% of your home’s equity and choose from terms ranging from 5 years to 15 years. If you’re a member, you can apply online without the need for an appraisal. You’ll work with a personal lender to complete the process. Note that if you choose to move forward with a home equity loan from Connexus, you will owe closing costs.
Navy Federal Credit Union
Navy Federal Credit Union’s home equity loans with 5- to 20-year terms are only available to members of the U.S. Armed Forces, veterans, U.S. Department of Defense (DoD) employees and their families. Its home equity loans range from $10,000 to $500,000 and you can borrow up to 100% of your home equity. There are no fees, including application, origination and closing costs. You can apply online or via your mobile device and track the status of your application digitally.
Pennymac
Pennymac’s home equity loans can allow you to borrow up to 85% of the equity in your home. There’s a home value estimator calculator on the Pennymac website so you can get an idea of your home value and equity. While there is no online application process, you can fill out a short contact form online, and a loan officer will reach out to you. There is limited information about rates, repayment terms and eligibility requirements online, so a loan officer can answer any questions you may have.
Frequently Asked Questions
What Is the Average Credit Score for a Home Equity Loan?
In most cases, you’ll need good to excellent credit to qualify for a home equity loan. Some lenders, however, have more lenient requirements and may accept borrowers with credit scores as low as 620.
How Much Can You Borrow With a Home Equity Loan?
Factors like your current home value, the amount you owe on your mortgage and the lender you choose will dictate how much you can borrow with a home equity. Most lenders will let you borrow up to 85% of your home’s value.
How Soon Can You Get a Home Equity Loan?
The time it takes to close on your home equity loan depends on the lender. In general, you can expect the process to take anywhere from a few weeks to a few months after you complete a formal application.
Related Articles
- Discover: 2024 Home Equity Review
- Unlock: 2024 Home Equity Review
- Spring EQ Home Equity Review 2024: Fast Funding and Access to Up to 95% of Your Home’s Equity
- Best Mortgage Lenders of May 2024
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Anna Baluch
Banking Expert
Anna Baluch is a freelance contributor to Newsweek’s personal finance team with a focus on personal loans, student loans, credit cards, and more. She has spent years writing for small businesses as well as large publications on various financial topics. Baluch lives in Cleveland, OH with her husband and two young daughters.
Read more articles by Anna Baluch
