If your home is an untapped financial resource, a home equity line of credit (HELOC) can help you access funds when you need them. You can use a HELOC for home improvements, funding a small business idea, moving, paying medical expenses, and more.
Factors that influence HELOC rates in Florida include your credit score, income, and monthly debts. However, one of the biggest factors that affect HELOC rates is the financial institution itself. Every lender is different, which is why you should always shop around and compare products.
Keep reading for a deep dive on HELOCS in Florida, as well as which lenders we ranked as the best in the state.
In this guide:
HELOC rates in Florida
HELOCs are on the rise across the country because of increased property values, which, in turn, provide homeowners with more equity. Many homeowners realize HELOCs may be a better financial choice because of lower rates, but you assume risk because you’re using your home as collateral.
Lenders consider many factors (some of which they disclose, but some they don’t). If you live in a high-risk area because of weather patterns or crime rates, you may pay a higher rate compared to other areas in the U.S.
In Florida, you must keep at least 20% equity in your home and can only cash out your equity once per year. You can only use one home equity loan every 12 months, and you can’t use both a HELOC and a home equity loan in the 12-month period.
We’ve researched the best HELOC lenders offering lines of credit in Florida. Here’s what we found.
The best HELOC rates in Florida
Click the name of each lender in the table below to find out more about its HELOC in Florida.
Figure – Best HELOC overall
Editorial rating: 4.9 out of 5
- Funding in 5 business days or less
- Easy online application
- Pay an origination fee to lower your rate
Florida homeowners can borrow between $15,000 and $400,000 with Figure, our highest-rated HELOC lender. It’s possible to pay a 0% origination fee with Figure, but a Figure customer service representative confirmed that origination fees in Florida are typically 1.50% and 4.99%. You can choose to pay a higher fee in exchange for a lower interest rate.
Figure is what is known as a financial technology (fintech) company, meaning it uses cutting-edge technologies to process and disburse loans, resulting in borrowers getting their money faster than with many competitors.
Terms:
- APR: 8.95% – 16.9%
- Loan amount: Up to $400,000
- Minimum credit score: 640
- Repayment terms: Up to 30 years
- Fees: Origination fee; May pay a subordination fee or release recording fee
Spring EQ – Best multi-product application
Editorial rating: 4.3 out of 5
- Funding time as fast as 11 days
- Can choose to make interest-only payments for up to 10 years, which can be a terrific option if you plan to sell in the near future
- Accepts credit scores as low as 640
Spring EQ doesn’t have strict eligibility requirements borrowers need to meet. Its minimum credit score is 640 for a home equity loan and 680 for a HELOC. A higher credit score can allow you to borrow a higher percentage of your equity within Florida’s legal limits (80%).
Spring EQ charges a few more fees than we’re used to seeing, but if you have a higher-value home, you can access more equity than with many of Spring EQ’s competitors. Plus, it offers traditional home equity loans via the same application as its HELOC, so you can compare the two to see which is best for you.
Terms:
- APR: Not disclosed
- Loan amount: Up to $500,000
- Minimum credit score: 640
- Repayment terms: Up to 30 years
- Fees: Loan administration fee, annual maintenance fee, and third-party fees
Hitch – Best for fast funding
Editorial rating: 4.4 out of 5
- Easy and fast application
- Fast disbursement
- Each borrower gets a dedicated loan officer
Hitch is known for its speed. Not only is the application fast and easy, but approved borrowers often get access to their funds within a matter of days. Plus, should you have a problem at any point, it’s easy to get in touch with a real person.
One of our favorite things about Hitch is that you can prequalify for a HELOC without a hard credit check. If you don’t like what you see, you can move on without incurring any damage to your credit score.
Terms:
- APR: 7.75% – 13%
- Loan amount: Up to $500,000
- Minimum credit score: 620
- Repayment terms: Up to 30 years
- Fees: Appraisal fee, loan origination fee, and an underwriting fee
Bethpage FCU – Best credit union
Editorial rating: 4.2 out of 5
- Borrow up to $1 million with a Bethpage FCU HELOC
- Convert some or all of your balance to a fixed-rate loan
- Zero fees—pay nothing for the application, loan origination, or appraisal
Bethpage is a credit union. Historically, credit unions tend to offer lower interest rates than other lenders. Bethpage requires a higher minimum credit score than many other lenders, but with zero fees and a $1 million possible draw, it’s a solid option for those with a sufficient credit score.
Bethpage also offers two ways to save. If you have a VantageScore of 720 or more, you may be eligible for a 12-month introductory APR of 6.99%. Plus, if you sign up for automatic payments through a Bethpage checking account, you’ll save an additional 0.25%. Over the life of a loan, that’s significant savings.
Terms:
- APR: Fixed rate of 6.99% for the first 12 months for borrowers with VantageScores of 720 or more; Variable rate starting at 8.5% after
- Loan amount: Up to $1 million
- Minimum credit score: 670
- Repayment terms: Up to 20 years
- Fees: No fees
Erin Kinkade, CFP®, advises getting quotes from local lenders as well:
Florida lenders may offer specifications or terms that aren’t available from national lenders. For example, Florida residents who are more vulnerable to hurricane damage to their property may not be approved for a HELOC from national lenders. In addition, credit unions available to local residents may be able to offer more favorable interest rates and overall terms. However, I recommend shopping with national lenders and local lenders to determine what is best for you.
How your HELOC rate affects your overall loan cost
Your interest rate is one factor that affects how much you’ll pay for your HELOC because it suggests how risky your loan is to lenders. If you have a strong credit score, you’re less likely to default, so you might pay a lower interest rate.
Let’s say you borrow $80,000 from your credit line and have a 20-year repayment term:
| HELOC 1 | HELOC 2 | Difference | |
| Interest rate | 8% | 10% | 2% |
| Monthly payment | $670 | $775 | $105 |
| Total cost of repayment | $160,800 | $186,000 | $25,200 |
Note: For simplicity, we assumed a fixed rate on both HELOCs, but a variable rate is more likely.
You can see how 2% can make a massive difference over the life of the loan.
How to get the lowest HELOC rates in Florida
To get the lowest HELOC rates in Florida, you need a strong credit score. The best way to improve your credit score is to pay all your bills on time and pay down your debts. Other ways include maintaining a varied credit mix or becoming an authorized user on a credit card with someone who has a strong score.
To secure the best rate in Florida, it helps to have more equity in your home. Because you’re invested in the property, lenders know you’re less likely to default on your loan. If you did, you would lose the greater asset: your home. With less risk comes a lower interest rate.
Just because one lender offers you one rate doesn’t mean another will offer the same. Always shop around. Borrowers who shop rates are more likely to pay less on their loans.
How to apply for a HELOC in Florida
The first step to apply for a HELOC in Florida is to rate shop and compare lenders. Never assume the first lender you look at has the best rates.
Next, you’ll need to provide your personal documents and information. This may include:
- Proof of address
- ID
- Name, birthday, and Social Security number
- Employer name and address
- Pay stubs
- W-2
- Tax returns
- Bank statements
- Property tax bill
- Mortgage statement
- Homeowners insurance declaration page
Then you’ll get your home appraised. The lender will arrange the appraisal.
If your home appraises for more than your mortgage balance, the lender may approve you for a HELOC. If this is the case, you’ll need to sign a few loan documents before you’ll get access to your funds. From there, you can access your line of credit as needed.
FAQ
Is it better to get a HELOC from a credit union or a traditional bank?
It depends on the lender. To compare, consider their rates and fee structures. Because credit unions are member-owned, they may have lower rates. But all financial institutions want to be competitive, so it’s crucial to shop around.
How does my credit score affect my HELOC interest rate?
Your credit score influences the interest rate for any loan or financial product because it suggests how much of a risk you are to lenders. Often, the higher your credit score, the lower your interest rate. In lenders’ eyes, people with a strong credit score are more likely to pay their bills on time.
Are there any tax benefits to using a HELOC?
Borrowers who use a HELOC may deduct the interest they pay on the HELOC from their taxes if they use the funds to “build, buy, or substantially improve” the home that secures the credit line. In this case, you might be able to use the interest you pay to reduce your overall tax burden.
Can I use a HELOC for expenses other than home improvements?
Yes, you can use a HELOC for just about any purpose you want.
Can I renegotiate the terms of my HELOC after I’ve opened it?
It depends on the financial institution. Some lenders are willing to modify the terms of the current HELOC, but you’ll need to speak with a loan specialist at the institution. Another way to change the terms is to refinance the loan.
