Home Equity Line of Credit

HELOC rates as low as 8.40% variable APR1

The simplest way to turn your home equity into flexible funds. See your interest rate and credit limit in minutes, with no impact on your credit score.

$120,000 Credit limit

$1,025 Est. mo. payment⁵

Turn your home equity into a flexible line—fast, simple, easy

Get your rate in minutes

See your HELOC interest rate, credit limit and estimated monthly payment⁵, with no impact on your credit score.

1

Quick & easy online application

Customize your HELOC offer and finish your online application in minutes.

2

Fast access to your money

Quick closing and your HELOC funds accessible in as few as 11 days.

3

A HELOC through Prosper is a flexible line of credit that uses up to 85%3 of your home equity to access up to $500,000* at a low rate.

What people are saying

image of five squares lined horizontally with a star inside each square, and 4 and one half squares are filled in green to indicate a 4.5 star overall rating
Net Promoter Score®
The ease of the process and great customer service made the process seamless. Very good experience.
Shannon from Florida
Net Promoter Score®
Simplest, smoothest and quickest I’ve ever had! I literally can’t say enough positive things!'
Shereen from Colorado
Net Promoter Score®
Everything went well! Maybe a little more communication but overall easy process.
Shereen from Colorado
Net Promoter Score®
Consolidated all of my debt and had some extra cash for home improvements! Overall experience was great!
Ryan from Florida
Net Promoter Score®
I was informed of each step of the process and all the representatives were very responsive.
Carmen from Maryland

A flexible HELOC for what you need—any purpose***

From home improvements and major purchases to debt consolidation, family expenses, and everything in between.

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How a HELOC works

How much home equity can you tap into?

My property in is worth  and has an est. mortgage balance of , which gives me an est. $115,000 of home equity to tap into.
Let’s give your home equity more time to grow—you’ll need $25,000+ in home equity to be eligible. In the meantime, a personal loan could be an option. Get my personal loan rate.

See your home equity options side-by-side

Get your HELOC rate with no impact to your credit score

An experience backed by sound, secure technology

Common HELOC questions

Visit the Prosper Help Center for more answered questions

A Home Equity Line of Credit (HELOC) is a line of credit secured by your house that usually comes with low variable interest rates.

This means your home acts as collateral for your line of credit in case you are unable to make your monthly payments. Because your line of credit is secured, the APR you receive may be lower than unsecured loans or credit cards.

You can use a HELOC for a variety of things: debt consolidation, home improvements, major purchases (appliances, cars, RVs, boats, etc.), and many other expenses***. It works much like a credit card. HELOCs give you flexibility in your monthly payments. You can even make interest-only payments during the draw period (up to the first 10 years of your HELOC)2.

If you’ve built up equity in your home and you’d like to have flexible access to borrow a large sum of money, then a HELOC might be a great option for you.

HELOCs can be used for all kinds of expenses, such as ongoing home improvements or other investments, or can even be used as an emergency needs fund. Because they’re secured by your home, you may be able to access more money at lower interest rates than with a credit card or personal loan. Unlike with a HELoan, which is delivered as a single large lump sum up front, you only pay interest on what you draw from your HELOC, and you can even choose to make interest-only payments² for the first 10 years of your HELOC’s life.

 

A HELOC is a line of credit that you can draw on any time for a specific draw period (usually 10 years), and a HELoan is a loan that you take out in one lump sum upfront.

Both HELOCs and HELoans are financing options that allow you to borrow against equity that you’ve built in your home, which can offer access to more money with lower interest rates than personal loans or credits cards can offer. HELOCs typically have variable APRs, which means their interest rates are based on the Prime Rate as published in the Wall Street Journal and are likely to change over time. HELoans typically have fixed APRs, which means a single interest rate is in effect for the life of the loan. This means your monthly payments are consistent, which makes it easier to make a budget—and stick to it.

For more information on the differences between a HELOC and a HELoan and how you might choose if one of them is the best option for you, visit Prosper’s popular blog article that breaks it all down: HELOC vs HELoan: What’s the difference?

HELOCs typically have requirements about the minimum you need to draw at the beginning, but beyond that, you usually don’t ever need to draw HELOC funds that you don’t need*.

Remember, you don’t pay interest on any HELOC funds you don’t borrow. Furthermore, you can choose to pay off your balance, accrued interest, and fees any time.

HELOC draw periods range in length, but on average are 10 years.

During a HELOC’s draw period, you can draw however much you need* up to your maximum credit line, repay it, and draw again. You can also choose to make interest-only monthly payments² and wait until the repayment period to repay the principal you borrowed.

A home equity line of credit can be refinanced at any time, although there may be some limitations depending on where you live and your lender’s requirements.

What’s more, there’s usually no prepayment penalty for closing out a HELOC. One thing to bear in mind is that you only pay interest on the cash you borrow, so if you want you can pay your balance down to $0, you can keep the line open to use in the future if you need it at a later date.

You can use your HELOC for nearly any purpose***.

HELOCs can be used for home improvements, debt consolidation, paying off a mortgage, major purchases (appliances, cars, RVs, boats, etc.), and even miscellaneous expenses.*** For more on these popular uses of HELOCs, see Prosper’s ebook, 4 Ways to Use a Home Equity Line of Credit.

You’ll pay back a HELOC much the same way you do a credit card, but you can choose how much principal you want to repay during the draw period, or even make interest-only payments² during that time.

Once the repayment period begins, you must start paying back any outstanding balance plus interest. Your repayment period can last up to 20 years2, although there’s usually no penalty for paying off your HELOC early.

Home equity is just the beginning. Prosper has smart, simple tools for borrowing, saving, and earning with products like personal loans, a credit card, and investing.

*Eligibility for a home equity loan or HELOC up to the maximum amount shown depends on the information provided in the home equity application. Depending on the lender, loans above $250,000 may require an in-home appraisal and title insurance. Depending on the lender, HELOC borrowers must take an initial draw of the greater of $50,000 or 50% of the total line amount at closing, except in Texas, where the minimum initial draw at closing is $60,000; subsequent HELOC draws are prohibited during the first 90 days following closing; after the first 90 days following closing, subsequent HELOC draws must be $1,000, or more, except in Texas, where the minimum subsequent draw amount is $4,000.
**The amount of time it takes to get funds varies. It is measured from the time the lender receives all documents requested from the applicant and depends on the time it takes to verify information provided in the application. The time period calculation to get funds is based on the first 4 months of 2023 loan fundings, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period.
***For Texas home equity products through Prosper, funds cannot be used to pay (in part or in full) non-homestead debt at account opening.
1HELOCs through Prosper have a variable interest rate. The APR may change and will be based on an index plus a margin. The “Index Rate” will based on The Wall Street Journal Prime Rate (“Prime”) published on the last business day of the month, (8.500% as of 07/31/2023). No annual fee for the first year, then $50 per year thereafter during the Draw Period. During the term of the HELOC, the APR will not go below 2.50% and will not exceed 21% or the maximum APR allowed by applicable law, whichever is less. Property insurance required. Flood insurance may be required. No annual fee for the first year, then $50 per year thereafter during the draw period. Obtaining the best rate requires the following criteria to be met: 1) a new home equity line of credit application, 2) a line amount between $200,000 and $400,000, 3) line must be in first lien position, 4) having a consumer checking account with the lender, or in the states listed below, any checking account, set up with automatic monthly payment deduction at the time of origination, 5) a loan-to-value (LTV) of 80% or less, and 6) strong creditworthiness. In the following states you can get the discount by setting up automatic payments with any checking account: AL, AR, DC, FL, GA, IA, IL, IN, KY, MD, ME, MN, NC, NE, OK, SC, SD, TN, and VA.
2HELOCs through Prosper have a draw period, followed by a repayment period. During the draw and repayment periods, the borrower is required to make minimum monthly payments. During the draw period, you may choose to make interest-only monthly payments. Interest-only payments may be lower and allow you flexibility in repaying the principal during the draw period. During the repayment period, you will be required to make monthly payments of both interest and principal. Payments during the repayment period may be higher than interest-only payments during the draw period. Refer to your HELOC agreement for details on monthly minimum payments and payment calculations.

3Depending on the lender, qualified home equity applicants may borrow up to 80% – 85% of their primary home’s value and up to 80% of the value of a second home. In Texas, qualified applicants may borrow up to 80% of their home’s value. HELoan applicants may borrow up to 85% of the value of an investment property (not available for HELOCs).

4Total costs, fees or charges of $1,712 – $8,902 may apply. During the term of the HELOC, the APR will not exceed 18% or the maximum APR allowed by applicable law, whichever is less. Property insurance required. Flood insurance may be required.
5No annual fee for the first year, then $50 per year thereafter during the draw period. During the term of the HELOC, the APR will not exceed 21% or the maximum APR allowed by applicable law, whichever is less. Property insurance required. Flood insurance may be required.
6For example, a twenty-year $60,000 HELoan could have an interest rate of 7.999% and additional costs, fees or charges up to $3,322 for an annual percentage rate (APR) of 8.291%. You could receive $57,613 and make 240 scheduled monthly payments of $512.80.

Home equity products through Prosper may not be available in all states.

All home equity products are underwritten and issued by Prosper’s Lending Partners. Please see your agreement for details.

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