Last updatedMay 2026
Trusted Home Equity Loans May 2026
Now is the best time to take cash out
Need cash for a large purchase? A home equity loan gets the funds you need.
Pay for college, fix your roof; afford it with the best providers around.
Are you eligible for a better rate?
Loan Purpose
Credit Score
Loan Amount
Are you eligible for a better rate?
Loan Purpose
Credit Score
Loan Amount
11,912 users
picked a lender via BestMoney this week
BestMoney Total Score
Our scoring system incorporates a weighted formula, which considers two parameters, Semrush and TrustPilot, providing a numerical score out of 10 and a star ranking out of 5 for each brand.
Popularity
BestMoney measures user engagement based on the number of clicks each listed brand received in the past 7 days. The number of clicks to each brand will be measured against other brands listed in the same query. Therefore, the higher the share of clicks a brand receives in any specific query, the higher the Click Trend Score. BestMoney accepts advertising compensation from companies, which impacts their (and/or their products’) position, and in some cases, may also affect their Click Trend Score.
Brand Reputation
To ascertain the reputation and recognition of the listed brands, we rely on Semrush's reliable and comprehensive competitive research tool and traffic analytics platform. By utilizing Semrush, we obtain estimates of both mobile and desktop traffic for any website. Evaluating clickstream data, including user activity, search patterns, and engagement levels, Semrush helps us accurately assess the brand's visibility, credibility, and authenticity. The Semrush score is then adjusted to our 0-5 formula for precise evaluation. However, in cases where a Semrush score is unavailable, the BestMoney Total Score will be based solely on the TrustPilot score
Is a refinance right for you?
Compare refinance lenders:
FAQs About Home Equity Loans
1. What is a home equity loan, and how does it work?
A home equity loan allows you to borrow a lump sum against the equity in your home, typically with a fixed interest rate and repayment term. It's often used for significant expenses like home improvements or debt consolidation.
2. How much can I borrow with a home equity loan?
The loan amount depends on your home's value, the remaining mortgage balance, and the lender's loan-to-value (LTV) requirements.
3. What can I do with my home equity loan?
Homeowners may use a home equity loan for home improvements, debt consolidation, medical expenses, or other financial needs.
4. How long does it take to receive funds from a home equity loan?
The timeline for receiving funds from a home equity loan typically ranges from 2 to 6 weeks, depending on the lender's processing time, appraisal requirements, and documentation provided.
Best Ways to Tap Home Equity 2026
This comparison table aims to highlight some main distinctions between 3 of the most popular ways to tap into your home equity, including options such as home equity loans for homeowners seeking predictable repayment terms:
| Feature | Home equity loan | HELOC | Cash-out refinance |
|---|---|---|---|
| Interest rate type | Fixed rate | Variable rate | Fixed or variable rate |
| How funds are received | Lump sum | Withdraw cash as needed | Lump sum |
| Replaces existing mortgage | No | No | Yes |
| Loan position | Second lien | Second lien | New primary mortgage |
| Typical minimum credit score* | 610 | 680 | 620 |
| Uses home as collateral | Yes | Yes | Yes |
| Common uses for funds | Home improvements, debt consolidation, major expenses | Ongoing expenses, renovations, emergency costs | Mortgage refinance, large expenses, debt consolidation |
What is a home equity loan?
A home equity loan allows you to borrow money against the equity in your home. Home equity is the value of the home minus the amount of any mortgage debt outstanding. With a home equity loan, you receive a lump sum payment and then repay the loan over a set period of time at a fixed interest rate. A home equity loan is typically a loan for a fixed amount. These loans generally have a fixed rate of interest and are paid over a fixed term, just like your original mortgage. Many borrowers compare different home equity loans to find the best rates and repayment options available.
Home Equity Loan VS HELOC
A home equity loan differs from a home equity line of credit or HELOC. A HELOC is a line of credit against the equity in your home that you tap as needed. Repayment terms can vary and in some cases there can be a balloon payment due at the end of the loan term. The interest rate might also be variable.
The current tax rules based on the tax reform passed at the end of 2017 no longer allow the interest paid on home equity loans or HELOCs to be deducted for tax purposes unless the money is specifically used for home improvements or related items as specified by the IRS. Borrowers considering home equity loans should always review current IRS guidance and consult a qualified tax professional.
Top Home Equity FAQs
1. What is home equity, and why do people want to tap into it?
2. How can I tap into the home equity that I have?
3. Is home equity a retirement resource?
4. How do I choose the right home equity product and lender for me?
How to choose the best home equity lender
Finding the best lender for a home equity loan will depend on your unique situation and needs. Comparing rates, fees, and repayment flexibility for home equity loans can help borrowers make more informed financial decisions.
Do you have poor credit or blemishes on your financial record? Certain lenders tend to be better for different loan purposes.
Are you looking for a home equity loan or a HELOC? Some lenders will tend to be better for one or the other.
The amount you need to borrow will also be a factor as some lenders may be a better fit for larger amounts than others.
Choosing the right lender for our situation will require some homework on your part to determine what loan features are important to you and what type of borrower you are. Researching lenders that specialize in home equity loans may also help borrowers find more competitive rates and approval criteria.
Why Homeowners Take Home Equity Loans in 2026
You might need a home equity loan to refinance a home improvement, to pay down other higher cost debt, to cover major unexpected medical bills, to pay the costs of college for your children or other major expenditures. Many homeowners use home equity loans because they often offer lower interest rates than unsecured borrowing options.
Home equity loans after COVID-19
Just as with other types of mortgages, many lenders have tightened their lending requirements for borrowers looking for a home equity loan in light of the economic decline resulting from the COVID-19 pandemic. This may include requiring a higher credit score and perhaps a stronger financial situation than in past years.
The Consumer Financial Protection Bureau has recently waived some of the requirements when applying for mortgages, including home equity loans. One requirement that has been waived is the three day right to rescind the loan. This was designed to get money into the borrower’s hands more quickly during the COVID-19 situation. While this can be helpful, it’s important to be sure that you understand all loan terms and conditions before moving ahead.
As far as HELOCs, there have been a number of lenders who have suspended activity with these lines or who have tightened their requirements in the wake of the financial fallout from the pandemic.
Is now the right time to tap into my home equity?
Some factors that might be enticing to borrowers include low interest rates and perhaps the need to access emergency cash due to some sort of economic hardship. Whether or not now is the right time for a home equity loan will depend upon the individual circumstances of each borrower.
Factors to consider include the stability of the borrower’s employment situation, likely trend of home values in their area and their need for the money.