Best home equity lenders for home improvement 2025

Written by

Linda Bell,

Edited by

Troy Segal

Published on April 14, 2025 | 2 min read

Bankrate is always editorially independent.

design image of a couple doing home improvement

If you’re considering borrowing against your home equity to remodel or repair your home, you’re in good company: Renovations are the most common reasons homeowners take out home equity loans and home equity lines of credit (HELOCs). Here’s our guide to the best home equity lenders for home improvement and how to find one that’s tailored to your needs.

Best home equity lenders for home improvement

Lender	Minimum credit score	Loan amount	Term lengths	Bankrate Score
RenoFi	620	$25,000–$750,000	10, 15 or 20 years for HE Loans; multiple terms for HELOCs	4.2
PenFed Credit Union	680	$25,000–$500,000	10-year draw period/20-year repayment period	4.5
Bank of America	Undisclosed	$25,000– $1 million	10-year draw period /20-year repayment period	4.3
FourLeaf Federal Credit Union	720 for intro rate	$10,000– $1 million	10-year draw period/20-year repayment period	4.3
Fifth Third Bank	640	$10,000– $500,000	10-year/period and 20-year repayment period with HELOC; 10-30 years for HE Loan	4.3
Flagstar Bank	680	$10,000– $1 million	10-year draw period/20-year repayment term for HELOC; 10, 15 or 20 years for HE Loan	3.6
U.S. Bank	660	$25,000– $750,000 (up to $1 million in California)	10-year draw period/20-year repayment period (HELOC); up to 30 years (home equity loan)	4.3
Connexus Credit Union	640	Starting at $5,000	15-year draw/15-year repayment period for HELOC; 5–15 years for home equity loan	4.2
Regions Bank	Undisclosed	$10,000– $500,000 for HELOC; $10,000– $250,000 for home equity loan	10-year draw period/20-year repayment term for HELOCs; 10-20 years for HE Loans	4.0

RenoFi

4.2

- Availability: Most U.S. states and Washington D.C.
- Home equity products: HELOCs and home equity loans
- Minimum credit score requirement: 620
- Funds available in: 14-50 days
- Where to find: Only available online
Pros

RenoFi’s loans are earmarked specifically for home improvement.

RenoFi is a broker that works with a variety of lenders, which can make the approval process easier.

Customers can borrow up to 90% of their home’s post-renovation value and 125% of its current value, which is more than a traditional home equity loan or HELOC.
Cons

Though RenoFi works with credit unions offering low rates, its own fees and closing costs can boost final APRs.

RenoFi only has a presence online, which is a negative for borrowers who prefer face-to-face interaction.

The loan can’t be used on a home you’ve listed for sale in the past six months.

PenFed Credit Union

4.5

- Availability: All U.S. states, as well as Washington D.C.
- Home equity products: Adjustable-rate HELOCs and the ability to convert some or all of the HELOC balance to a fixed rate anytime during the draw period
- Minimum credit score requirement: 680
- Funds available in: 15 days
- Where to find: PenFed’s help center is available online 24/7, though its branches are only limited to a handful of states
Pros

PenFed allows you to switch from a variable-rate HELOC into a fixed-rate one on some or a portion of the balance during the draw period, at no charge.

For HELOCs up to $500,000, PenFed will pay most of your closing costs.

PenFed boasts of a fast closing, which can be completed in as little as two weeks.
Cons

PenFed does not offer a traditional fixed-rate home equity loan.

PenFed’s HELOCs are not available for co-ops, timeshares, properties with more than four units, mobile homes or properties currently under major renovations.

If you close your account within the first three years, you’ll be required to reimburse any closing costs.

Bank of America

4.3

- Availability: Every state in the U.S.
- Home equity products: Adjustable-rate HELOCs; conversion to a fixed-rate loan at opening
- Minimum credit score requirement: Undisclosed
- Funds available in: Undisclosed
- Where to find: Bank of America has branches in every state, plus online and phone customer service
Pros

Covers closing costs up to $1 million and doesn’t charge application, conversion or annual fees.

You can convert a portion or all of your HELOC balance to a fixed rate, a minimum of $5,000 for one year, without incurring a fee.

Preferred customers can receive interest rate discounts of 0.125% to 0.625%.
Cons

In most cases, Bank of America’s minimum line amount is $25,000, which can be steep for homeowners who only need financing in the four figures.

You can start filling out the application online, but you have to visit one of Bank of America’s branches to complete the closing.

You will be charged a $450 early termination fee if you close your account within three years of opening it.

FourLeaf Federal Credit Union

4.3

- Availability: Every state, with the exception of Texas
- Home equity products: HELOCs and the option to convert some or all of your balance to a fixed-rate loan at no charge
- Minimum credit score requirement: 720 for introductory rate
- Funds available in: 35-38 days
- Where to find: Branches in New York; video appointments, via email or phone
Pros

FourLeaf doesn’t charge appraisal, application or origination fees.

You can convert some or all of your adjustable-rate HELOC to a fixed-rate loan without incurring a charge.

FourLeaf pays closing costs for credit lines up to $500,000.
Cons

While FourLeaf has a HELOC, it doesn’t offer a traditional fixed-rate home equity loan.

If you close your HELOC within three years of opening it, you will be on the hook for closing costs, which could run as high as $15,000.

FourLeaf branches are limited to New York and you need to open a savings account with them before opening the HELOC.

Fifth Third Bank

4.3

- Availability: Home equity products are only available in 11 states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee and West Virginia
- Home equity products: HELOCs, home equity loans, the option to convert your adjustable-rate HELOC to a fixed-rate home equity loan
- Minimum credit score requirement: 640
- Funds available in: Undisclosed
- Where to find: Customers can reach Fifth Third Bank online, on the phone, online or at one of its local branches
Pros

Fifth Third doesn’t charge closing costs for its HELOCs or home equity loans.

You have the option of locking in your variable-rate HELOC into a fixed-rate loan whenever you’d like for $95. and unlocking it for free.

The debit card attached to your HELOC earns one reward point with every $3 you spend on purchases.
Cons

Fifth Third Bank’s home equity products are only available in 11 states.

To get the lowest advertised rates, you need a minimum credit score of 750 and a loan-to-value ratio of 70 percent.

While you can start Fifth Third’s application process online, it must be completed in person or on the phone.

Flagstar Bank

3.6

- Availability: Every state, except Texas
- Home equity products: HELOC and home equity loan
- Minimum credit score requirement: 680
- Funds available in: 48 hours for a HELOC; 3 to 5 days for a home equity loan
- Where to find: In person at over 400 branches, on the phone or via live online chat
Pros

Flagstar Bank’s home equity loan and HELOCs feature loan amounts as high as $1 million.

Flagstar pays all closing costs, which include appraisal fees, title fees and recording fees.

For the first six billing cycles of the HELOC, Flagstar offers a low introductory APR.
Cons

Flagstar’s physical presence is limited to only nine states.

For lines of credit less than $50,000, Flagstar requires an initial draw equal to the full amount.

$75 annual fee (waived in the first year)

U.S. Bank

- Availability: HE Loans: all states; HELOCs: every state except for Delaware, Texas and South Carolina
- Home equity products: Home equity loan, HELOC and the option to lock in the HELOC to a fixed rate
- Minimum credit score requirement: 660
- Funds available in: Undisclosed
- Where to find: You can start an application on the phone; in-person support at one of 2,000 branches in 26 states
Pros

U.S. Bank doesn’t charge closing costs for its home equity products as some lenders do.

You have the option of converting a portion of your HELOC to a fixed-rate loan.

U.S. Bank has high borrowing limits: up to $750,000 for homes in most states and up to $1 million in California.
Cons

If you pay off and close the HELOC within the first 30 months, you will be subject to an early closure fee of 1 percent of the line amount or a maximum of $500.

After the first year, there’s a $75 annual fee (waived for select customers).

To receive the lowest home equity rates, you have to set up automatic payments from a U.S. Bank checking or savings account.

Connexus Credit Union

4.2

- Availability: Connexus’ home equity products are available in every state except Alaska, Maryland, Hawaii and Texas
- Home equity products: Connexus offers a fixed-rate home equity loan, along with a standard and interest-only HELOC
- Minimum credit score requirement: 640
- Funds available in: Within 30 days of applying
- Where to find: Connexus has about 475,000 members in all 50 states and 14 branches in Illinois, Minnesota and Wisconsin.
Pros

Connexus’ loans start at $5,000, much lower than other home equity lenders offer.

Connexus allows borrowers to access up to 90 percent of their home’s equity, which is a higher loan-to-value than some lenders.

For only a $5 donation, anyone can join Connexus’ credit union.
Cons

Connexus’ home equity products come with fees, including closing costs of $175 to $2,000, though it depends on where the property is located and the loan terms.

HELOCs and home equity loan terms are limited to 15 years, short compared to other lenders.

You may not be able to get in-person service, as the company has only 14 branches, limited to the Midwest region.

Regions Bank

- Availability: 15 states (primarily in the South and Midwest)
- Home equity products: Home equity loan, HELOC and option to convert all or a portion of the HELOC to a fixed-rate loan
- Minimum credit score requirement: Undisclosed
- Funds available in: 20 days
- Where to find: apply online, by phone or at one of 1,250 branches primarily in the South and Midwest
Pros

Regions’ home equity products under $250,000 don’t have any closing costs.

The company’s minimum loan amount is $10,000, lower than other lenders offer.

In addition to a home equity loan and HELOC, you also can convert a portion or all of your HELOC to a fixed-rate.
Cons

Regions’ reach only extends to 15 U.S. states.

Your property must be located in a state where Regions has physical branches.

If you close your HELOC line within 24 months, you will have to pay back any closing costs Regions covered.

Why borrow against home equity for home improvement?

Among U.S. adults, home improvements or repairs were the most common uses for home equity, cited by over half of homeowners (55 percent) as a good reason to tap in Bankrate’s Home Equity Insights Survey. By taking out a home equity loan or HELOC, you’re essentially using your property’s value to enhance its value — investing in your home with improvements that will boost its living space and market price, should you sell. Other advantages include:

The interest rates on home equity loans and HELOCs are typically lower than on personal loans and credit cards.
The interest is often tax-deductible, if the taxpayer itemizes deduction on their return.
With HELOCs, you can withdraw funds at different times – ideal for long-term projects and paying contractors in stages.

How Bankrate rated the best lenders for home improvement

Written by

Linda Bell

Senior writer, Home lending

Best home equity lenders for home improvement

RenoFi

Lender details

Pros and cons

Pros

Cons

PenFed Credit Union

Lender details

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Cons

Bank of America

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Pros

Cons

FourLeaf Federal Credit Union

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Pros

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Fifth Third Bank

Lender details

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Flagstar Bank

Lender details

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Pros

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U.S. Bank

Lender details

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Pros

Cons

Connexus Credit Union

Lender details

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Pros

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Regions Bank

Lender details

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Pros

Cons

Why borrow against home equity for home improvement?

How Bankrate rated the best lenders for home improvement

Methodology

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