Best HELOC Lenders for Home Improvement in 2025

If you’re planning to tackle a home renovation project in 2025—whether it’s updating your kitchen, adding a new bathroom, or building that dream backyard oasis—you’re probably thinking about how to pay for it. While personal loans and credit cards are common routes, a HELOC (Home Equity Line of Credit) can be one of the most flexible and cost-effective options available, especially if you’ve built up equity in your home.

The right HELOC lender can offer competitive rates, flexible repayment terms, and a streamlined application process—all of which can make a big difference when you’re knee-deep in renovation costs. Below, we’ve rounded up the top HELOC lenders for home improvement projects in 2025, based on credit requirements, fees, funding speed, and overall borrower experience.

Rocket Mortgage HELOC

For homeowners who prefer a more traditional revolving line of credit, Rocket Mortgage continues to offer one of the most borrower-friendly HELOC products in the game. You’ll need at least 15–20% equity in your home to qualify, and a credit score in the mid-600s is typically sufficient. Rocket is transparent about its closing costs (usually 2%–5%), and they provide a flexible line of credit that lets you borrow, repay, and borrow again—perfect for multi-phase home improvement projects. Whether you’re replacing your roof now and remodeling your basement later, this structure gives you ongoing access to funds without having to reapply.

• Get a Quote at Rocket Mortgage

LoanDepot HELOC

LoanDepot has made a name for itself by combining the familiarity of a large national lender with the speed and convenience of digital processing. Their HELOC product is a smart pick for homeowners who want flexibility, predictable costs, and fast funding. You can borrow between $25,000 and $250,000 depending on your equity and credit profile, and their minimum credit score requirement is typically around 620. One standout feature is their fixed-rate draw option, which gives you the security of stable monthly payments—even if rates rise in the future. LoanDepot is also known for offering no application or appraisal fees, which can reduce your upfront costs significantly. If you’re looking for a reliable lender with solid terms and a user-friendly experience, LoanDepot checks all the boxes.

• Get a Quote at LoanDepot

Guaranteed Rate HELOC

Guaranteed Rate (also known as Rate.com) brings speed and simplicity to the forefront with its fixed-rate HELOC product. Borrowers can access between $25,000 and $400,000 with a straightforward 1.99% origination fee and no hidden closing costs. The process is entirely digital and funding can happen in as little as five days, which is ideal if you’re trying to jump on a contractor’s limited availability or take advantage of seasonal pricing on materials. With a minimum credit score of 640 and fixed payments over time, Guaranteed Rate makes it easy to plan your renovation budget without worrying about rate fluctuations.

• Get a Quote at Guaranteed Rate

Figure HELOC

If speed and simplicity are high on your list, Figure’s HELOC might be the answer. You can apply online, get approved quickly, and receive funding in as little as five days. The minimum credit score is 640 (680 for second homes), and you can borrow between $15,000 and $400,000—up to $750,000 in select areas. Figure charges a one-time origination fee of up to 4.99% but doesn’t penalize you for prepayment. One of its standout features is the ability to lock in new fixed rates on future draws, which is a major plus in a rising interest rate environment. It’s a solid choice for tech-savvy homeowners who want to move fast and keep costs predictable.

• Get a Quote at Figure

What Is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home, allowing you to borrow against the equity you’ve built up in your property. Equity is the difference between your home’s current market value and the amount you still owe on your mortgage. Unlike a traditional loan, a HELOC works much like a credit card: you can borrow as much or as little as you need, up to an approved limit, during a set draw period—typically 10 years. After this, you enter a repayment period, often lasting 10 to 20 years, where you pay back both principal and interest.

Pros & Cons of a HELOC

Should You Use a HELOC for Home Improvement?

A HELOC can be a smart way to finance home upgrades, but it’s not the right choice for everyone. The biggest advantage of a HELOC is flexibility—unlike a lump-sum loan, a HELOC acts more like a credit card tied to your home equity. You can draw what you need, when you need it, and only pay interest on the amount you actually borrow. That makes it ideal for projects that span several months or happen in stages, like a kitchen remodel followed by a bathroom refresh. HELOCs also tend to offer lower interest rates than personal loans or credit cards, which helps keep your costs down over time.

But there are trade-offs. Because your home serves as collateral, missing payments could put your property at risk. Variable interest rates also mean your payments could rise in the future, especially if you’re only making interest payments during the draw period. That’s why it’s important to have a realistic repayment plan—and why fixed-rate HELOC options are becoming more popular. Ultimately, using a HELOC makes the most sense when you have significant equity in your home, a strong credit profile, and a renovation plan that will improve both your quality of life and your property’s long-term value.

Best HELOC Lenders for Home Improvement in 2025 originally appeared on Benzinga.com.