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Best No-Appraisal Home Equity Loans
By Leslie Cook MONEY RESEARCH COLLECTIVE
Money reviews the four best no-appraisal home equity loans, including Discover, best for getting an automatic valuation, and Spring EQ, best no-appraisal home equity loans for bad credit.
Money’s Main Takeaways
- A no-appraisal home equity loan can be an ideal solution with the potential to offer you fast access to funds without the hassle of going through a home appraisal process.
- Although these loans are processed faster than traditional home equity loans, this often comes at the price of higher interest rates.
- Understanding the available no-appraisal or hybrid home equity loan offerings available to you is best achieved through an apples-to-apples comparison such as those below.
- If you cannot pay back a home equity loan, you risk foreclosure. Review your personal finances to make sure this kind of loan is right for your needs.
Unlock the value already in your home
- Put your home’s equity to work for you
- Predictable payments with fixed interest rates
- Guidance from experienced Home Loan Experts
- Fund renovations, upgrades, or major expenses
Find a home equity option that works for you
- Unlock cash from within your home
- Online loan application process
- Turn your home equity into the cash you need
- Over $100 Billion Funded. 21 Years in Business
Flexible terms, redraw up to 100%, borrow up to $750K
- Approval in 5 minutes. Funding in as few as 5 days.
- Use to consolidate debt or finance your next project
- 100% digital app & online appraisal
- Good/Excellent credit
No monthly payments required
- Borrow up to $600,000
- Repay when it's convenient for you
- Online quote tool won't hurt credit
- Apply entirely online
Unlock your home's equity without adding to your debt
Unlock your home's equity without adding to your debt
Get up to $500K cash–no loan
- No monthly payments & a 30 year term
- Keep current equity, share appreciation
- If home value drops, Unison shares loss
- The industry pioneer since 2006
Only 25% equity required
Only 25% equity required
- No cash due at closing
- No monthly payments necessary
- Borrow up to $600,000
- Only 25% equity required and no prepayment penalties
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.
- Connexus Credit Union: Best Credit Union No-Appraisal Home Equity Loan
- Discover: Best for Getting an Automatic Valuation
- Navy Federal Credit Union: Best No-Appraisal Home Equity Loan for Veterans
- Spring EQ: Best Home Equity Loan for Bad Credit and No Appraisal
Best No-Appraisal Home Equity Loans Reviews
Best Overall: Connexus Credit Union
- Offers the best combination of low rates, flexible terms
- Long draw period (for HELOCs)
- High LTVs allowed
- Several term options to choose from
- Must become a credit union member
- Closing costs range from $175 to $2,000
- Not offered in Maryland, Texas, Hawaii, or Alaska
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 home equity loan 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, all you need to join is a $5 donation to the Connexus Association, which provides scholarships and supports financial literacy and open a savings account with an initial $5 deposit.
Read more about Connexus’ home equity loan products
See rates on Connexus’ Secure Website >>
Best Home Equity Loan: Discover
- Uses AVM for appraisal
- Competitive interest rates
- High LTVs allowed and no closing costs
- Four term options to choose from
- High credit score requirement
- No second homes or investment properties allowed
- Not offered in Iowa or Maryland
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.
To further sweeten the pot, Discover has no appraisal, application, origination or processing fees, so you don’t need to pay 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. Credit score requirements depend on the amount being borrowed: a score of 620 or higher is required for loans lower than $150,000 and a minimum 700 score is required for higher amounts.
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 >>
Best No-Appraisal Home Equity Loan for Veterans: Navy Federal Credit Union
- 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.
Senior enlisted personnel who take out a new equity loan, line of credit or their first purchase or refinance loan can receive a $250 Loyalty Card. 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 >>
Best Home Equity Loan for Bad Credit and No Appraisal: Spring EQ
- Funds in as little as 11 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 a DTI of 45% or less. Those with a minimum score of 700 and a DTI of up to 50% could qualify for a loan or line of credit of up to 95% of the home’s market value. The maximum amount you can borrow from Spring EQ is $500,000.
Another advantage provided by Spring EQ is speed: you can get an instant qualification and if the loan is approved you can 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 are not 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 home equity loan 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
For more than 20 years, LendingTree has helped homeowners find loans by allowing them to compare offers across a wide array of home equity loan lenders. The procedure is straightforward and quick, and, best of all, it won’t affect your credit score. Pre-qualified offers from carefully selected lenders are available within minutes, though final APR, repayment terms and monthly payments may differ.
Why LendingTree didn’t make the top four: Though LendingTree advertises relaxed credit score requirements and debt-to-income ratio limits, initially offered products may not match the final terms offered by their partner lenders, leading to too much ambiguity for a solid recommendation.
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. Home equity loans can 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, home 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 to customers or those who opt to become customers, as they become eligible for discounts that can make a home equity loan a bit more affordable. The dollar value of offered loans compares well on both the low and high end, though available information about specifics is a little sparse pre-application.
Why U.S. Bank didn’t make the top four: Ambiguity around key factors such as the possibility of additional fees and no firm timeline for the loan application process make U.S. Bank’s offering a little too vague compared to competitor’s offerings.
See rates on U.S. Bank’s Secure Website >>
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 home equity loans 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 likelier you can 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:
- Your credit score and payment history
- Your debt-to-income ratio
- The loan-to-value ratio of the property
- The amount of the loan
- The total value of the property
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 home 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 alternatives.
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.
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.
Latest news in home equity loans
Tapping into home equity is one way of dealing with unexpected expenses without using a credit card or personal loan, both of which charge a much higher interest rate than equity loans and lines of credit.
Home equity loans increased in popularity over the past few years as home values soared. Homeowners who hold mortgages had a record high $17 trillion in equity during the first three months of 2024, according to data analytics firm Intercontinental Exchange (ICE).
Of that amount, property owners had access to $11 trillion in tappable equity — meaning they could take cash out while still retaining at least a 20% ownership stake in their home.
ICE estimates that about 48 million homeowners have some equity they can access via an equity loan or line of credit. As home prices continue to rise, the amount of available equity should continue to increase as well.
No-Appraisal Home Equity Loan FAQs
Can you get a home equity loan without an appraisal?
Can I get a HELOC without an appraisal?
Who pays for the appraisal on a home equity loan?
Who is the best person to talk to about a home equity loan?
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.
- Connexus Credit Union: Best Credit Union No-Appraisal Home Equity Loan
- Discover: Best for Getting an Automatic Valuation
- Navy Federal Credit Union: Best No-Appraisal Home Equity Loan for Veterans
- Spring EQ: Best Home Equity Loan for Bad Credit and No Appraisal
Leslie Cook is Money's lead real estate editor, covering news stories about mortgages and how rate movements affect the housing market and writing and editing stories that inform our readers about real estate trends and how they affect homebuyers and sellers. Leslie writes a weekly newsletter, Money Moves, that covers a wide range of real estate topics in addition to her weekly articles. Her work has been featured on Apple News, MSN and ConsumersAdvocate.org. Leslie has been covering the mortgage and real estate industry at Money since 2019 and has interviewed industry leaders, such as Lawrence Yun, chief economist at the National Association of Realtors, and Glenn Kelman, CEO of brokerage Redfin. She has been a guest on the This Morning with Gordon Deal radio show, interviewed by The Mortgage Note, and served as moderator for ServiceLink’s State of Homebuying webinar. While at Money, Leslie has contributed to several of Money’s rating and ranking features, including Best Places to Live, Best Places to Travel and Changemakers. She has also played a major role in researching and selecting Money’s Best Banks rankings for the past four years. Before joining Money as a staff writer, Leslie was a reporter for Caribbean Business Newspaper in San Juan, Puerto Rico, covering human resources, telecommunications and computers. She graduated cum laude from Bryn Mawr College in Pennsylvania with a bachelor’s degree in history. The research and interviewing skills learned there have contributed to Leslie’s ability to provide accurate information on her area of expertise and elicit informative responses from her interviewees.