Money’s Main Takeaways
- Using a no-appraisal home equity loan (HELOAN) is an option when you need to access cash quickly and want to take advantage of your home’s increased value.
- This type of loan can be processed faster than a traditional equity loan since it doesn’t require a formal appraisal.
- There are several lenders that offer this type of loan, including Discover and Spring EQ. It’s essential to compare rates, terms and fees to ensure you find the right lender to fit your needs.
- There are risks to no-appraisal HELOANS. You’ll be responsible for a second monthly mortgage payment, and failure to make your payments can result in foreclosure.
Why Trust Us?
Our editors and writers evaluate no-appraisal home equity loan providers independently, ensuring our content is precise and guided by editorial integrity. Read the full methodology to learn more.
- Reviewed 38 providers
- 1,000+ hours of research
- Based on 14 data points, including APRs, loan limits and approval time
Our Top Picks for Best No-Appraisal Home Equity Loans
The companies listed below are in alphabetical order.
Best No-Appraisal Home Equity Loans Reviews
- Lower introductory rate than most competitors
- Up to 15 year repayment term
- Small loans available
- Only available to members
- Not available to homeowners in Alaska, Hawaii, Maryland or Texas
- Charges closing fees
Why we chose it: Connexus’ (NMLS ID 649316) competitive interest rates and flexible repayment terms make it a good choice for homeowners who prefer to work with a credit union rather than a traditional bank.
Connexus Credit Union offers loans as low as $5,000, making the lender a great choice if you only need to borrow a small amount of money. Qualified homeowners can borrow up to 90% of their home’s value, more than many of the credit union’s competitors, and you can opt for a repayment term of five, 10 or 15 years. Connexus has excellent reviews from its customers, highlighting the credit union’s customer service and flexibility for borrowers who are going through hard times. You will have to pay closing costs on the loan, which can range between $175 and $2,000.
You can apply for a HELOAN online or at one of Connexus’ branches if you prefer in-person service. Although membership in the credit union is required to take out a home equity loan, you need only open a savings account with a $5 deposit and donate $5 to the Connexus Association, which provides scholarships and supports financial literacy.
Read more about Connexus’ home equity loan products
See rates on Connexus’ Secure Website >>
- Uses AVM for appraisal
- No cash required at closing
- Combined loan-to-value ratio of up to 90%, higher than most competitors
- Loans available from $35,000 to $300,000
- No HELOC option available
- Loans start at $35,000
Why we chose it: Discover (NMLS ID 684042) employs an automated valuation model (AVM) to determine the value of your home. The valuation process can be done in a matter of seconds, speeding up the application process.
Discover doesn’t charge appraisal, application, origination or processing fees, so you don’t need to come up with a large amount of cash at closing. Combined with competitive, fixed-rate APRs and flexible repayment terms, Discover is one of our top options for tapping into your home’s equity.
Loan amounts range from $35,000 to $300,000, with the stability of a fixed interest rate and repayment terms anywhere from 10 to 30 years. Discover has a credit score requirement of 680 or higher to qualify.
Discover’s loan-to-value (LTV) ratio of up to 90% is higher than many of its competitors. However, its approval and funding process is a little slower than some competitors. Eligibility determination takes one to two weeks, with a final decision coming within three weeks. After the decision, you’ll have to wait up to two weeks for funding
Read more about Discover’s home equity loan products and see rates on Discover’s Secure Website >>
- Maximum loan amount of $500,000
- No closing costs, application, origination or upfront fees
- Fixed-interest loans with flexible repayment terms
- Available only to active duty or retired military and their immediate families
- Requires a Navy Federal Credit Union membership
- Mixed customer reviews
Why we chose it: NFCU (NMLS ID 399807) is a great option for active duty military members and veterans, their families and some Department of Defense personnel because of its competitive interest rates and low fees.
Navy Federal doesn’t charge any application or origination fees and will pay the closing costs on any fixed-rate home equity loan taken out after June 1, 2023, which could represent a savings of $300 to $2,000 in upfront costs. Qualified borrowers could access up to 100% of their home’s value. Repayment terms are generous, ranging from five to 20 years. There are risks to no-appraisal HeLoans. You’ll be responsible for a second monthly mortgage payment, and failure to make your payments can result in foreclosure.
Membership in NFCU is limited to military personnel and their families and can be established by opening a savings account with an initial $5 deposit.
See rates on Navy Federal’s Secure Website >>
- Funds in as little as 14 days
- Requires minimum credit score of only 640
- Loans available from $25,000 to $500,000
- Terms of five to 30 years
- Not available in Alaska, Hawaii, Idaho, Missouri, New York, North Dakota, South Dakota, West Virginia or Wyoming
- Charges administrative fee
- May charge additional third-party fees
Why we chose it: With lower-than-average credit score requirements, fixed-rate options and a debt-to-income ratio (DTI) as high as 50%, Spring EQ (NMLS ID 1464945) is a good option for borrowers with a less-than-perfect credit history.
You can qualify for a Spring EQ home equity loan with a score as low as 640 and access up to 90% of your home’s market value. The lender is now also offering a fixed-rate home equity line of credit that can be taken out on primary residences, second homes and investment properties. The maximum amount you can borrow from Spring EQ with an equity loan or HELOC is $500,000.
Another advantage provided by Spring EQ is speed: you can get an instant qualification and, if the loan is approved, receive your funds in 21 days on average. In some cases, you may be able to get funding within 14 days. The lender also offers flexible loan terms ranging from five up to 30 years.
Loans aren’t available in all states, and Spring EQ may charge third-party fees on top of its administrative fee. Though Spring EQ has only been around since 2016, it has excellent customer reviews on leading consumer review platforms.
Read more about Spring EQ’s home equity loan products
See rates on Spring EQ’s Secure Website >>
Other no-appraisal home equity loans we considered
We evaluated HELOAN products and lenders based on available interest rates, repayment terms, application process and time required, and consumer reviews, among other criteria.
Though the following lenders offer competitive terms, they failed to meet all the requirements for inclusion in our “best of” rankings.
LendingTree
- “Soft” credit inquiry has no effect on your credit score
- Works with carefully vetted lender partners
- Convenient way for borrowers to compare various home equity loan products
- Not a direct lender
- Rate offers are tentative pending partner lender review
LendingTree is an online marketplace that offers an array of financial products, including home equity loans. You can easily compare interest rates and get estimates from multiple lenders within a matter of minutes. SpringEQ, Navy Federal Credit Union and Rocket Mortgage are just a few of the lender options you can find on the site.
Why LendingTree didn’t make the top four: While being able to compare multiple lenders at once is convenient, you’ll still have to go through the full application process with the lender you choose. Once that lender has all your financial documentation, the rates and terms offered may be significantly different than the ones originally offered.
See rates on LendingTree’s Secure Website >>
KeyBank
- Borrow up to 80% of a home’s total value
- Offers an interest rate discount for borrowers who also have a KeyBank checking and savings account
- Only available in Alaska, Colorado, Connecticut, Idaho, Indiana, Massachusetts, Maine, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont and Washington
- Does not disclose APR before application approval
KeyBank offers home equity loan products that allow qualified applicants to borrow up to 80% of their home’s total value. It offers both home equity loans and HELOCs. Loan amounts range from $25,000 to $500,000 with an available 0.25% discount on interest rates to banking customers who sign up for autopay from a KeyBank checking account.
Why KeyBank didn’t make the top four: Though KeyBank offers competitive offerings and flexible terms, its equity loans are only available to homeowners in 15 states.
See rates on KeyBank’s Secure Website >>
U.S. Bank
- Covers all closing costs
- Offers discounts to banking customers or those who enroll in autopay
- Loan amounts from $15,000 to $750,000
- Requires a higher credit score
U.S. Bank offers competitive rates, especially for customers with excellent credit who enroll in autopay from a U.S. Bank personal checking or savings account. You can borrow up to 80% of your home equity, and loan amounts range from a minimum of $25,000 to a maximum of $750,000 ($1 million in California). The lender offers flexible repayment terms of up to 30 years.
Why U.S. Bank didn’t make the top four: U.S. Bank didn’t make our main list because it requires a minimum credit score of 660, which is slightly higher than the minimum set by our top picks. It also caps the maximum amount of equity you can borrow at 80%, which is lower than the percentage offered by the companies on our best-of list.
See rates on U.S. Bank’s Secure Website >>
Rocket Mortgage
- Offers home equity loans up to 90% of a home’s value
- Maximum debt-to-income ratio of 50%
- Maximum loan amount of $500,000
- Minimum credit score of 680
- Charges 2% to 6% in closing costs
Rocket Mortgage offers home equity loans ranging between 80% and 90% of a home’s appraised value, depending on the applicant’s credit history: the higher the score, the higher the CLTV. The minimum loan amount is $45,000 in most states ($10,000 in Michigan). The online lender also has a maximum DTI requirement of 50%, which is higher than many competitors. Rocket has an easy online application process and competitive interest rates.
Why Rocket Mortgage didn’t make the top four: Rocket didn’t make our list of the top no-appraisal home equity lenders because its minimum credit score requirements are higher than its competitors and it charges closing costs, as opposed to some other lenders.
No-Appraisal Home Equity Loan Guide
If you’re a homeowner looking into home equity loans for the first time, you may have questions about how much equity you have in your home or even how equity in a home is built up. Keep reading for a look at the available loan options and answers to some of the most commonly asked questions about no-appraisal home equity loans.
What is a no-appraisal home equity loan?
No-appraisal HELOANS can be used by borrowers to access the money they have built up in their homes without the need for an appraisal. Unlike traditional home equity products, these do not require a third-party professional real estate appraiser to assess the home’s value. Homeowners use these loans to consolidate debt, carry out home renovations and cover unforeseen medical expenses, among other things.
Instead, the loan is typically approved based on the applicant’s credit history and overall personal financial health. The benefit of this type of loan is the speed with which it can be processed, as lengthy appraisals can slow down approval timelines. There are also no hefty appraisal fees. However, speed can come at a cost, as the interest rate is typically higher than with traditional loans, although some lenders may offer interest rate discounts if you’re a regular customer.
The funds from the loan are paid out in a lump sum and repaid over a term that can range from five to 30 years, depending on the lender. If you use a home equity loan to make home improvements, some of the interest paid on the loan could be tax deductible.
Home equity loans, also known as second mortgages, take a second lien position on your home on top of your first mortgage and will increase your combined loan-to-value (CLTV). Because you have to carry two mortgages, there’s an increased risk of foreclosure on your home if you run into financial difficulties and fall behind on your payments on either loan.
Equity loans may not be a reasonable option for those who recently financed a new home purchase, since they may not have enough built up.
Tips on how to get a home equity loan without an appraisal
Getting approved for a no-appraisal home equity loan depends on the lender and their lending requirements. Borrowers with higher credit scores will qualify for the best rates and pay less interest over the life of the loan. Generally, the lower the mortgage balance (and the higher the amount of equity), the more likely you are to get through the process without an appraisal.
1. Look for lenders that consider automated valuation models (AVMs) or desktop appraisals
Research home equity lenders who may consider automated valuation models (AVMs) or desktop appraisals rather than a full appraisal, as this reduces the cost of borrowing and the time to close the loan. AVMs calculate an estimated value of a property based on public data such as property tax and deed records. Desktop appraisals incorporate the AVM with additional data supplied by an appraiser to generate a detailed report of the property’s value.
2. Ensure that you meet the lender’s qualification requirements for loan approval
Check the lender’s qualification requirements before applying for a better chance of getting your loan approved. These criteria commonly include things such as:
If you don’t meet the lender’s criteria, it’s unlikely that your application will be approved. Still, you may identify some things you can correct, such as a low credit score that can be improved by lowering your credit card utilization or improving your debt-to-income ratio.
3. Provide full documentation of income, credit history and property details
Without a full accounting of your income, credit history and property details, it’s unlikely your loan will be approved. Lenders need comprehensive and accurate documentation to verify your creditworthiness and your home’s current market value. It’s essential to provide all the required information as accurately as possible to ensure your application has the best chance of approval.
4. Apply with credit unions or online lenders instead of traditional banks
You may want to consider applying with credit unions or online lenders instead of traditional banks. Credit unions can be a desirable choice because they tend to have more flexible requirements, lower fees, lower interest rates and may offer more attractive loan terms. Online lenders usually have faster prep and approval times, may waive application fees and, in some cases, don’t require appraisals.
Alternatives to no-appraisal home equity loans
No-appraisal equity loans offer a convenient way to access the capital in your home without undertaking an appraisal, but not everyone will end up qualifying or find the terms of available loans attractive. Fortunately, there are some good alternative financing options.
Home equity lines of credit (HELOCs)
One potential alternative is a home equity line of credit (HELOC). A home equity line of credit is a revolving line of credit that uses the equity in your home as collateral. With a HELOC, you can borrow money up to the predetermined line of the credit limit as needed, making it a sound way to access funds for home improvement projects, vacations or other large purchases. The period of time you can access funds is called the draw period and it is typically 10 years. During the repayment period, you can no longer access funds, and it usually lasts 20 years. HELOC rates are typically lower than home equity loan rates.
Cash-out refinances
Another alternative is a cash-out refinance. A cash-out refinance involves replacing the existing mortgage and mortgage lender for a loan with a higher amount and then pocketing the difference between the two loans. This option could be the best if mortgage rates are lower than your current mortgage, allowing you to benefit from lower interest payments while taking advantage of the increased equity in your home. However, cash-out refinance loans tend to have lower rates than home equity loans.
A cash-out refinance is also the only option available for borrowers who want to get a loan through the Federal Housing Administration (FHA), since the government entity doesn’t offer equity loans or lines of credit.
Personal loans
Personal loans are another option. While personal loans and debt consolidation loans typically have higher interest rates than home equity loans, they may be the best option if you need funds quickly and don’t want to wait for the process of cash-out refinancing. Additionally, personal loans don’t require collateral, simplifying the process even further. Note that most personal loans will require a minimum credit score of 580 or higher. Personal loans can also be used to consolidate high-interest debt.
No-Appraisal Home Equity Loan FAQs
Does a home equity loan require an appraisal?
However, some lenders may use different evaluation methods, such as recent home sales in the local area or assessed property value of the subject property. In some instances, the lender may opt for a drive-by appraisal for a home equity loan or not require an appraisal at all.
How long does it take to get a home equity loan after appraisal?
Once the lender approves the application, the borrower will usually be asked to complete and sign the loan documents, after which the lender will disburse the loan and the borrower will receive the funds as a lump sum. Though this timeline is approximate, you can expect the process to take between 15 and 45 days.
Who pays for the appraisal on a home equity loan?
Typically, the borrower in a home equity loan must cover the cost of any necessary appraisal. The cost of an appraisal varies depending on the size and location of the property and can range anywhere from $200 to $700 or more. Some lenders may cover the cost of the appraisal, but it’s best to confirm this with your lender for the specific terms of the loan.
How do banks appraise houses for home equity loans?
The appraiser will also compare the home’s value to comparable properties in the area to ensure the loan amount is fair and accurate. The lender will use the appraisal results to set the loan-to-value ratio and set the lending parameters accordingly.
How We Chose the Best No-Appraisal Home Equity Loans
Our methodology for determining the best no-appraisal home equity loans involved carefully comparing the features and benefits of currently available offerings, including:
- Appraisal requirements
- Interest rates
- Application process and processing times
- Availability of fixed or variable interest rates
- Available terms
- Customer and private organization reviews on a variety of platforms
- Customer satisfaction ratings
We also spoke with customer service representatives when possible. It’s important to note that though this information is current at the time of publication, financial institutions may change or update their policies and offerings. Interest rates, terms and the availability of no-appraisal home equity loans may change, and we recommend you verify all information presented here prior to applying for loans with any of these lenders.
Summary of Money’s Best No-Appraisal Home Equity Loans
The companies listed below are in alphabetical order.