If you’re like me, the idea of tapping your home’s equity sounds both smart and risky—depending on how and where you do it. A HELOC (home equity line of credit) can be a powerful financial tool, but the lender you choose and the fine print you skip can make or break your experience. And based on Yahoo Finance’s latest rankings, 2025 is shaping up to be a standout year for savvy borrowers—if they’re willing to read between the lines.
What to Look for in the Best HELOC Lenders of 2025
On June 20, Yahoo Finance released its updated list of top-rated home equity line of credit Score lenders, after analyzing 45 national and regional options. Truist Bank topped the list, with Better Mortgage rate , Navy Federal Credit Union, Bank of America, and New American Funding following for their respective strengths—from customer satisfaction to low fees and fast closings.
What Homeowners Should Really Know About These Rankings
Big Limits Aren’t Always a Big Win
Truist stood out for offering HELOCs up to $1 million with flexible payment options and high combined loan-to-value ratios (up to 89%). That sounds impressive, and it is—but only if you truly need that kind of borrowing power. I’ve seen too many homeowners get excited by big numbers and end up borrowing more than they actually need. If you’re only looking for $50K or so, a simpler option may serve you better.
Speed Can Be Misleading
New American Funding claims it can close in as little as five days. Sounds great, right? But that speed comes with a tradeoff: You have to draw the entire credit line upfront. That’s not typical for a HELOC, which usually lets you borrow as needed. So, while quick access may help in a pinch, be clear about whether flexibility or speed matters more to you.
Customer Satisfaction Comes With Limits
Navy Federal Credit Union scored highest for customer happiness—and I believe it. But here’s the catch: You must be affiliated with the military to qualify. This is one of those cases where great service doesn’t help the average homeowner. If you do qualify, though, this lender might be your golden ticket.
Low Fees Can Mask Long Waits
Bank of America wins for fee transparency: no origination, annual, or application fees, plus loyalty perks for existing customers. But don’t overlook that their average HELOC closing time is around 50 days. If you’re in a hurry, that’s a red flag. If you’re not? The savings may be worth the wait.
What I’d Do If I Were You: Practical Advice for Borrowers
Compare CLTV Ratios
CLTV stands for combined loan-to-value, and it determines how much you can borrow. If you have a lot of equity, go with lenders like Better Mortgage or Truist, which offer up to 90% and 89% CLTV, respectively.
Ask About Fixed-Rate Conversion Options
With interest rates fluctuating, some borrowers want the safety of fixed payments. Truist lets you convert portions of your balance to fixed-rate terms for a small fee—this can be a lifesaver if Interest rates rise again.
Watch Initial Draw Requirements
Better Mortgage rates requires an initial draw of at least 75% of your credit line or $50,000, whichever is greater. That’s a major commitment upfront. If you just want access to funds in case of emergency, this may not be the lender for you.
Don’t Skip the Fine Print
Whether it’s an annual fee, closing costs, or draw minimums, each lender has quirks. I’d recommend calling the lender directly and asking for the real terms—not just the website version.
Quick Explainer: What Is a Home Equity Line of Credit (HELOC)?
What is a HELOC, and how does it work?
A HELOC lets you borrow against the value of your home as needed, similar to a credit card. You can draw money during a set “draw period” (often 10 years), then repay it over a longer “repayment period.” Most have variable interest rates, though some offer fixed-rate conversion options.
Reader Q&A
Can I get a HELOC with bad credit?
Some lenders accept lower credit scores, but you may face higher interest rates and stricter requirements. Look into credit unions or smaller lenders for more flexibility.
Should I choose a HELOC or a home equity loan?
If you need all your funds upfront and prefer fixed payments, a home equity loan may be better. If you want ongoing access to funds, go with a HELOC.
Can I use a HELOC for anything?
Technically yes, but interest is only tax-deductible if used to buy, build, or substantially improve your home (until rules change in 2026).
Want to stay ahead of the market?
Smart homeowners know that borrowing is just one part of the financial puzzle. I always recommend pairing HELOC research with a review of your full debt picture—and using digital tools to compare offers before locking one in.
Let me know what you’re considering using your HELOC for—I’d love to help you think through your options.
One Last Thought: Be Real About Why You Need This Money
Are you renovating your home? Consolidating high-interest debt? Funding education? A HELOC can make all of these possible—if it aligns with your broader financial goals. But tapping your home equity without a clear, disciplined plan is how good intentions turn into decades of debt.
You don’t need the “best” HELOC lender on paper—you need the best fit for your priorities.
