Best home equity lenders for bad credit in 2026

You hear it everywhere, including on Bankrate: You need strong credit to get a home equity loan, and the higher your credit score, the lower your rate. While that’s true, a less-than-sterling score — or no score at all — doesn’t automatically disqualify you from home equity loans and HELOCs. Here are our picks for some of the best lenders for low- or bad-credit borrowers and tips on how to find the right one for you. 

Best home equity lenders for low or bad credit 

First Access Lending

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• Lender details

  • Availability: 16 states and Washington, D.C.
  • Home equity products: Home equity loans & HELOCs
  • Minimum credit score requirement: 620 for home equity loans, 660 for HELOCs
  • Funds available in: Undisclosed
  • Where to find: Online

• Pros and cons

  

  Pros

  • High maximum loan amounts (up to $1 million)
  • Borrow up to 90% of your home’s value with home equity loans
  • No annual fees or prepayment penalties

  

  Cons

  • Doesn’t post rates online
  • Available in only a third of the country
  • Must withdraw 100% of HELOC at closing

Figure

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• Lender details

  • Availability: Every U.S. state except Hawaii
  • Home equity products: Adjustable- and fixed-rate HELOCs
  • Minimum credit score requirement: 600
  • Funds available in: 5 days
  • Where to find: Online

• Pros and cons

  

  Pros

  • Relatively low loan minimum ($15,000), though higher in Alaska and Texas
  • Funding in as little as five days for loans of less than $400,000
  • Offers fixed-rate HELOCs

  

  Cons

  • Origination fee of 4.99%, capped at $12,000
  • Must withdraw 100% of HELOC at closing, minus the origination fee
  • If your loan exceeds $400,000, you may have to pay for an appraisal ($500-$2,000) depending on your property value, type and location.

RenoFi

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• Lender details

  • Availability: All U.S. states, except for Hawaii, Massachusetts and New York
  • Home equity products: HELOCs and home equity loans
  • Minimum credit score requirement: 620 (though most lenders have a minimum 660 requirement)
  • Funds available in: Undisclosed
  • Where to find: Online

• Pros and cons

  

  Pros

  • Partners with a variety of credit unions around the U.S.
  • Borrow up to 95% of your home’s post-renovation value and 125% of its current value, more than is offered with the typical home equity loan or HELOC
  • No seasoning or maximum equity requirements

  

  Cons

  • Must use funds for renovations
  • Charges its own fees and closing costs, on top of those charged by the lender
  • Homes listed for sale in the last six months don’t qualify

Upstart

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• Lender details

  • Availability: 43 states and Washington, D.C.
  • Home equity products: HELOCs
  • Minimum credit score requirement: 600  
  • Funds available in: Nine days or less
  • Where to find: Online  

• Pros and cons

  

  Pros

  • Borrow up to 95% of your home’s value — more than most lenders offer
  • Ability to lock in a fixed rate on each draw
  • No annual fee or prepayment penalty

  

  Cons

  • Must take an initial draw of 80% of your credit limit, minus the origination fee
  • Three-year draw period, less than most lenders
  • Charges an origination fee of 0%-4.99% of the credit line

Splash Financial

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• Lender details

  • Availability: 17 states and Washington, D.C.
  • Home equity products: HELOCs
  • Minimum credit score requirement: 600  
  • Funds available in: 10 business days
  • Where to find: Online

• Pros and cons

  

  Pros

  • Access up to 90% of your home’s value
  • Fast application process
  • Low advertised rates

  

  Cons

  • Must make an initial draw of at least 75% of your credit line if it’s less than $100,000
  • $100 annual fee charged after the first year
  • Splash isn’t the actual lender; your offer will depend on the credit union or bank the online marketplace partners with.

How a low credit score affects your home equity loan

A lower credit score marks you as a bigger risk in a lender’s eyes. That doesn’t mean you’ll be denied, but you will likely be charged a higher interest rate. You might also receive less favorable terms, such as a smaller credit line or higher fees. Or you may have to meet stricter loan conditions in other respects, like having a lower debt-to-income ratio (DTI) or a higher amount of equity in your home. 

How to get a home equity loan with bad credit

To boost your chances of getting approved for a home equity loan with bad credit, focus on improving your debt-to-income ratio — how much you regularly have going out each month vs. how much you have coming in. You can do that by paying down outstanding balances on credit cards or other loans.

Without a strong credit score, you will likely need more than the minimum 15 to 20% equity stake in your home to qualify. If you need help, finding a co-signer with good credit and working with your mortgage lender or another familiar lender can potentially help you score an approval. Write a letter of explanation describing why your credit score is low, especially if it has suffered a recent ding due to factors beyond your control — and/or you expect it to rebound shortly. 

How Bankrate rated the best home equity lenders for low or bad credit

• Methodology

  To identify the best home equity lenders for borrowers with a credit score below 640, Bankrate surveyed more than 50 home equity lenders nationwide and scored each based on its self-reported data and research by Bankrate staff. We assigned scores based on a lender’s affordability, availability and borrower experience, giving equal weight to each category. Bankrate also collected data on each lender’s minimum credit score requirements for HELOC and home equity loans. To be named one of Bankrate’s best home equity lenders for bad credit, lenders must have a stated, required minimum credit score for at least one of these products that is below 640. Lenders must also receive a Bankrate score of 4.0 or higher.

  To receive a top score from Bankrate, lenders must offer a standard rate lower than Bankrate’s tracked average, and if the lender offers HELOCs, they generally also offer a competitive introductory rate. In addition, lenders are usually licensed in more than 30 U.S. states, offer both HELOCs and home equity loans, provide at least one product for borrowers with credit scores of 640 or lower and have a loan minimum of $10,000 or less. If the lender offers HELOCs, they typically don’t require a minimum draw. Finally, our top-scoring lenders tend to make it easy for borrowers to compare rates and manage much of the loan process online, and they offer multiple options for customer support. For lenders that offer HELOCs, providing the option to lock the rate on some or all of a HELOC balance is a plus. Bankrate’s evaluations are independent and are not influenced by lender partnerships or advertising relationships. Read more about how Bankrate scores are determined here.

  Some lenders may appear as honorable mentions, despite earning a Bankrate score of 4.0 or higher, due to eligibility restrictions — for example, concerning military affiliation —  or limited availability (15 or fewer states).