Best HELOC Rates and Best HELOC Lenders in California (September 2024)

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Updated: September 9, 2024

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The best home equity line of credit (HELOC) lender in California is Lower. It stands out with interest rates spanning from 8.75% to 13.5% and offers loan amounts between $15,000 and $500,000 to fit a wide array of homeowner needs. While it operates exclusively online, its services are tailored to suit a sweeping range of borrowers with a minimum credit score of 580. MoneyGeek considered numerous factors to determine the best lender, beyond just cost.

MoneyGeek included 14 lenders in its study across California. While that's extensive, remember that this doesn't cover every lender in the state. For a more tailored approach, California Credit Union, California Coast Credit Union and Credit Union of Southern California are local options, each with distinct features that could serve your needs well.

A Summary of the Best HELOC Lenders in California

Best Overall: Lower

Best for Affordability: Aven

Best for Bad Credit: U.S. Bank

Best for Large Loan Amounts: Bank of America

Best for Debt Consolidation: PNC Bank

We evaluated each lender in our research against a rubric, including APR ranges, annual fees and affordability, among others.

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Our analysis was completed in September 2024 and includes lenders that do business in California.

14Lenders Analyzed

    Best HELOC Lender Overall

  • Lower
    • 8.75% to 13.5%APR Range
    • $15,000 to $500,000Loan Amount Range
    • 580Minimum Credit Score
    • 10-year draw period; undisclosed repayment period Repayment Terms
    • NoneAnnual Fees

    Lower is the top HELOC lender in California, offering a range of useful features. Its APRs vary from 8.75% to 13.5%, allowing homeowners to choose a rate that fits their budget. Lower's loan amounts start at $15,000 and cap off at $500,000, providing flexibility for various financing needs. With a minimum credit score requirement of 580, it makes home equity lines more accessible for a wider audience. Plus, Lower does not charge annual fees, further reducing costs for borrowers. The lender's online platform ensures that information is easily available.

    Pros

    • No annual fee
    • Credit scores from 580 accepted
    • Personalized post-loan support

    Cons

    • No rate discounts offered
    • No fixed-rate HELOC conversion
    • Unclear repayment period length
    Lower

HELOC Rates in California by Credit Score

Borrowers in California can see that their HELOC APR varies with factors like credit scores and LTV ratios under 80%. Different repayment terms also affect rates. Compare using the table to see rate changes according to selected parameters.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:680 - 740
LTV Ratio:
LTV Ratio:80% - 95%
HELOC (10 year)APR6.68%
HELOC (15 year)APR6.68%
HELOC (20 year)APR6.68%

Where does this data come from?

When selecting a HELOC lender in California, comparing APRs can lead to savings. Different lenders offer varying APRs, which influence your monthly payments and the total cost of the loan. By comparing, you secure a rate that aligns with your financial goals, ensuring a smoother borrowing experience.

HELOC Calculator: Do You Qualify in California?

Homeowners in California have an average tappable equity of $366,000, according to TransUnion's report for the fourth quarter of 2023. This means you might be able to borrow against this amount if your home equity is high.

The average credit score in California is 722, as found in a study by Experian. If your score is around this number, getting a HELOC should be feasible. However, eligibility for a HELOC isn't solely based on equity and credit score; other factors come into play too. The HELOC calculator below will show how various factors may affect your eligibility, offering a clearer understanding of your position when seeking a HELOC.

HELOC Calculator
Discover borrowing capacity, interest rates, and make informed financial choices with confidence!
You may be eligible for a HELOC. Because you have an LTV at or below 85%, you may be approved for a home equity line of credit.
10 Years Payoff Scenario
$732/mo
Eligible to Borrow
$62,500
Loan-to-Value Ratio
80%
Note: Lenders set varying limits on the acceptable Loan-to-Value (LTV) ratio, depending on the property type (owner-occupied or investment). Typically, owner-occupied homes have a higher acceptable LTV, often capped at 85%.

    Best HELOC Lender for Affordability

  • Aven
    • 7.99% to 15.49%APR Range
    • Up to $250,000Loan Amount Range
    • 620Minimum Credit Score
    • Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
    • NoneAnnual Fees

    Aven is the go-to for California homeowners looking for a budget-friendly HELOC. Aven's product is a hybrid HELOC working like a credit card backed by your home's equity, yet it's reported as a HELOC on your credit report to credit bureaus. With an APR range of 7.99% to 15.49%, it offers financial flexibility. No annual fees mean keeping costs low, while automatic payments trim the rate by another 0.25%. For wallet-friendly options that pack value, Aven makes sense for homeowners focused on affordability.

    Pros

    • Provides credit card backed by home equity
    • No origination, annual fees or prepayment penalty
    • 0.25% rate reduction for autopay

    Cons

    • Line limit only up to $250,000
    • Card typically takes 10 days
    • Does not offer hardship help
    Aven

How does MoneyGeek create this recommendation?


    Best HELOC Lender for Bad Credit

  • U.S. Bank
    • 8.95% to 13.1%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 660Minimum Credit Score
    • 10-year draw period; up to 20-year repayment periodRepayment Terms
    • Up to $75Annual Fees

    U.S. Bank is the top HELOC lender for homeowners in California with bad credit. Even with a lower credit score, you're not ruled out for a HELOC here. U.S. Bank requires a minimum credit score of 660, which can be manageable for those working to improve their credit standing. If approved, you face a maximum APR between 8.95% and 13.1%. Plus, U.S. Bank offers a 0.5% discount on your rate when you opt for automatic payments, easing the financial burden a bit. U.S. Bank is accredited by the BBB, though it currently does not have a rating.

    Pros

    • Minimum line amount of only $15,000
    • Offers a 0.5% discount with autopay
    • Allows for interest-only payments

    Cons

    • Must close in-person at the bank
    • Charges early closure fee
    • Annual fee of $75
    U.S. Bank

How does MoneyGeek recommend lenders for those with bad credit?


    Best HELOC Lender for Large Loans

  • Bank of America
    • Starting at 9.82%APR Range
    • $25,000 to $1,000,000Loan Amount Range
    • UndisclosedMinimum Credit Score
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees

    Bank of America is the top pick for homeowners in California looking for a HELOC to fund high-cost needs like home renovations or education expenses. Its product offers a significant maximum loan amount of up to $1 million, with no annual fees to worry about. With a 10-year draw period, followed by a 20-year repayment period, you get ample time to manage the funds you've accessed. Plus, Bank of America ensures no application fee, annual fee or closing costs are added to your bill.

    Pros

    • Competitive introductory rate for six months
    • No fees for application, annual or closing
    • Financial hardship assistance available

    Cons

    • Minimum online loan amount of $25,000
    • Charges $450 for early closure
    • Closing in-person required
    Bank of America

How does MoneyGeek recommend lenders for large loan amounts?


    Best HELOC Lender for Debt Consolidation

  • U.S. Bank
    • 8.95% to 13.1%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 660Minimum Credit Score
    • 10-year draw period; up to 20-year repayment periodRepayment Terms
    • Up to $75Annual Fees

    U.S. Bank is the best HELOC lender for Californians looking to consolidate debt from credit cards or personal loans. A HELOC can offer lower interest rates and a flexible way to pay off higher-interest debts. U.S. Bank provides a competitive APR range of 8.95% to 13.1%, a sizable loan amount range from $15,000 to $750,000 and allows quick access to funds within three business days. Homeowners can combine multiple balances within a limit that meets their needs. U.S. Bank is accredited by the BBB, though it currently does not have a rating.

    Pros

    • Offers a 0.5% autopay discount
    • Fixed-rate option available
    • Interest-only payment option

    Cons

    • Closing must be in person
    • Annual fee of $75
    • No financial hardship assistance
    U.S. Bank

How does MoneyGeek recommend lenders for debt consolidation?

How to Choose a HELOC Lender in California

MoneyGeek has spotlighted top HELOC lenders in California tailored to diverse needs. Yet, if you're considering an alternative, the right strategy can streamline your hunt for a suitable lender in the Golden State. Let's guide you through selecting one that aligns with your financial scenario.

    girlThinking icon

    Define Your HELOC Goals

    Identify why you want a HELOC to find lenders tailored to your needs. For home improvement, some lenders offer special terms. For consolidating debt, others might have favorable options. Clarity on use helps narrow down choices in California, ensuring suitable terms.

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    Evaluate Lender Reputation

    Investigate your lender's credibility through the Better Business Bureau and the Department of Financial Protection and Innovation. High ratings indicate reliability. Avoid lenders with low scores or regulatory issues in California.

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    Compare Rates and Fees

    Beyond rates, inspect fee structures of various lenders. Examine HELOC closing costs and consider how they impact your loan. In California, these can vary widely, so check for transparency and competitive costs to avoid overpaying.

    smallBusiness icon

    Check Community Standing

    Assess a lender’s local reputation in California through awards and community recognition. These honors reflect its commitment to serving clients well and the satisfaction level you might expect.

    loanReview icon

    Review Lender Flexibility

    Inquire about a lender's adaptability like if it offers interest-only payments or can convert HELOCs with variable rates to a fixed-rate option. Easy application processes and online prequalification are bonuses, especially in California's dynamic market.

FAQ: HELOC Lenders and HELOC Rates in California

Navigating HELOC options can be daunting. These frequently asked questions distill complexities into clear, actionable advice, guiding California homeowners to make informed choices for their unique financial needs when selecting a HELOC lender.

What's a good HELOC rate in California? What is the best HELOC rate in Los Angeles?

A good HELOC rate in California hovers around 6.24%, assuming an LTV ratio of 80% or lower and a credit score between 680 and 740. Homeowners should note that rates can fluctuate based on creditworthiness and lender choice. The best HELOC rates in Los Angeles are likely to mirror those found throughout California.

Which HELOC lender is best overall in California?

Lower is MoneyGeek's top option among the best HELOC lenders in California. Its competitive APR range from 8.75% to 13.5%, a loan amount range from $15,000 to $500,000 and the minimum credit score requirement of 580 makes it appealing for many homeowners.

Can I still qualify for a HELOC in California if I have bad credit?

Yes, you can qualify for a HELOC with bad credit. Lower is an example, offering HELOCs with a minimum credit score requirement of 580 and an APR range from 8.75% to 13.5%.

Which HELOC lender in California is best for large loans?

Bank of America is the top choice for large loans in California, accommodating extensive home renovation or significant investment opportunities. Taken as a lump sum available to you after you successfully apply for a HELOC, you can then withdraw however much you need at a time and pay either a variable or fixed interest rate on the sum you withdrew, similar to a credit card.

Can I use a HELOC to consolidate debt?

Homeowners can use a HELOC for debt consolidation. It's important to consider the APR range and time to receive funds. MoneyGeek's pick is U.S. Bank, offering up to 20-year repayment periods and funds in three business days. Review the HELOC pros and cons to see if it's a good option for you.

How can I ensure I find the right HELOC lender in California for me?

Finding the right HELOC lender in California involves assessing your intended use for the HELOC, understanding your financial situation and matching these factors with a lender's offerings to find the best fit for your needs.

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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