Arizona residents looking to unlock the value of their homes’ equity have multiple financing options to explore. However, choosing the right lender can be overwhelming. The best home equity loans in Arizona offer competitive interest rates, low fees, and flexible repayment options that suit a variety of consumer and their financial goals.
Our ranking evaluates lenders based on criteria specific to Arizona borrowers, which may differ from our national ratings. Whether you plan to consolidate debt, renovate your home, or finance a major expense, these providers offer the best home equity loans and home equity lines of credit (HELOCs) for your needs.
Understanding Home Equity Loans
Purchasing a home with a mortgage means your lender fronts most of the money, and you repay it over time. As you make mortgage payments and your property appreciates in value, you build equity. This is the portion of your home you truly own.
That equity is accessible through financial products like home equity loans or HELOCs, using your property as collateral. These loans allow you to borrow a lump sum or tap into your equity as needed to fund home repairs, upgrades, medical costs, debt consolidation, or almost anything else, provided it’s legal. Most lenders base the loan amount on your current equity, measured against your mortgage balance, and how much you’ll retain after the loan is approved.
Home Equity Loan vs. HELOC: What’s the Difference?
When deciding how to borrow against your home’s value, you have two primary options, including a home equity loan and a home equity line of credit (HELOC).
Both allow you to leverage your equity, but they serve different purposes and come with unique borrowing and repayment structures.
Home Equity Loan
A home equity loan provides a single lump sum of money that you start repaying immediately through fixed monthly installments. These loans typically feature a fixed interest rate, giving you consistent payments and a clear repayment timeline.
They’re best for homeowners planning to fund one-time expenses such as a major kitchen remodel or paying off high-interest debts, such as credit card balances, in full.
HELOC (Home Equity Line of Credit)
A HELOC acts more like a revolving credit line, similar to a credit card. You’re approved for a set credit limit, and you can withdraw funds as needed during the draw period. As you repay, those funds become available again. HELOCs often come with variable annual percentage rates or APRs, meaning your payments can fluctuate.
However, many of the best home equity loan providers in the nation are moving toward fixed HELOC rates. This structure works well for ongoing projects or unpredictable expenses.
Which Option Is Right for Arizona Homeowners?
A home equity loan makes the most sense for Arizona homeowners who need a lump sum to cover a specific, substantial expense, like a full home renovation, a new roof, or a large medical bill.
These loans are also popular for debt consolidation, helping borrowers pay off high-interest credit cards or personal loans at a lower, fixed rate.
On the other hand, a HELOC is ideal for homeowners who want flexible access to funds over time. Many use HELOCs to support gradual home improvement projects, handle emergency expenses or bridge income gaps often associated with self-employment or seasonal work in Arizona’s varied job markets.
Choosing between the two comes down to how and when you plan to use the money. If you value predictable monthly payments, a home equity loan is a safe bet. If you prefer the freedom to borrow as needed, a HELOC offers more flexibility.
How We Ranked the Best Home Equity Loans in Arizona
Arizona’s real estate market ranges from luxury properties in Scottsdale and Paradise Valley to more modest homes in rural areas, so borrowers within the state need options that match their financial situations. To identify the best lenders, we evaluated companies based on the following criteria.
- Loan amount limits
- Interest rates, including availability of fixed and variable options
- Eligibility criteria, such as credit score, income, loan-to-value or LTV ratio
- Fees, like closing costs, application fees, annual or membership charges
- Customer service and lender reputation
- Range of borrowing products offered
- Repayment terms flexibility
- Length of time in business and experience
Our focus was to find lenders that offer affordable, accessible, and transparent home equity financing specifically tailored for Arizona homeowners, whether you’re living in Phoenix, Flagstaff, Tucson, or anywhere in between.
The Best Home Equity Loans in Arizona
Navy Federal Credit Union
Best for Military Members
Why We Chose Navy Federal
Navy Federal Credit Union (NFCU) is an excellent option for Arizona veterans, active military personnel, and their families. It offers both home equity loans and HELOCs, providing flexibility for different financial needs.
NFCU sets itself apart by offering low closing costs and competitive interest rates, which can be particularly beneficial for service members looking to borrow against their home’s equity. Additionally, some borrowers will qualify for loans of up to 100% of their home’s equity.
A key benefit of borrowing from NFCU is its dedicated customer support for military families. NFCU also provides financial education resources, deployment assistance, and flexible repayment options tailored to military borrowers.
However, membership is necessary to access NFCU’s home equity products, which excludes homeowners without military affiliations. So, while it stands out as a top provider in Arizona, not all residents will qualify.
Pros
- Low closing costs compared to banks
- HELOCs with competitive rates
Cons
- Only available for credit union members
- Membership requirements exclude most civilians
LendingTree
Best for One-Stop Shopping and Low Interest Rates
Why We Chose LendingTree
LendingTree operates as a lending products and services marketplace rather than as a direct lender. Arizona homeowners can compare multiple loan offers from different financial institutions.
That makes it excellent for those looking to shop around for the best interest rates, fees, and loan terms without having to apply to multiple lenders or taking multiple hits on their credit scores.
LendingTree offers both home equity loans and HELOCs, depending on which lender they choose or qualify for. Because it isn’t a direct lender, loan terms, interest rates, and fees vary widely depending on the results of your prequalification.
Pros
- Easily compare multiple offers without affecting your credit score
- Home equity loans and HELOCs are both available
Cons
- Not a direct lender
- Interest rates, fees, and terms vary by lender
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Rocket Mortgage
Best for Low Down Payments
Why We Chose Rocket Mortgage
Rocket Mortgage is one of the top mortgage lenders in the U.S. It has an excellent reputation among Arizona homeowners for its streamlined online application process, fast approvals, and exceptional customer service.
Rocket Mortgage is particularly well known for offering competitive fixed-rate home equity loans, making it a solid choice if you’re looking for predictable monthly payments for home renovations, debt consolidation, or to cover large expenses.
However, Rocket Mortgage does not offer HELOCs, meaning if you need a revolving credit line, you’ll need to look elsewhere. Despite this, its high customer satisfaction ratings and user-friendly online process land it high on our list of the best providers in the state.
Pros
- Competitive interest rates
- Easy online application process
- High average overall consumer ratings
Cons
- No HELOC options are available
- higher credit score requirements than some competitors
Better Mortgage (Better.com)
Most Convenient
Why We Chose Better Mortgage
Better.com provides a streamlined online borrowing experience, making the loan application process fast and efficient. While specific details on their home equity loan offerings are limited, their emphasis on technology-driven solutions appeals to tech-savvy borrowers.
Better Mortgage eliminates many of the traditional fees that you may be used to. Unlike many competitors, Better.com doesn’t charge origination fees, application fees, or prepayment penalties, making it a solid choice for homeowners looking to save on upfront costs.
With a fast and user-friendly prequalification process, you can check your eligibility within minutes and without affecting your credit score. Better.com offers both home equity loans and HELOCs, so you can choose the plan that best fits your needs.
Pros
- Charges no origination fees or application fees
- Completely online process from prequalification to funding
Cons
- Limited in-person communication options
- Interest rates may be higher than its Arizona competitors
Discover Home Equity Loans
Best for Fixed-Rates
Why We Chose Discover
The Discover company is primarily thought of as a credit card company, and its home equity loan offerings often fall below the radar. Known for low fees and flexible repayment terms, Discover provides competitive interest rates for its home equity loans. Its transparent fee structure and customer-first approach make it a solid choice for Arizona homeowners.
Its fixed-rate structure means you’ll get predictable monthly payments, ideal for homeowners maintaining a budget. Unlike some competitors, Discover doesn’t offer HELOCs. Those who need a revolving credit line will have to look elsewhere.
Additionally, Discover’s eligibility requirements are a bit more stringent than its closest competitors. The company generally requires a higher credit score and a lower debt-to-income ratio than most. In other words, you’ll have better luck with another lender if your score is below 680. However, if you qualify, Discover provides easy applications and highly rated customer service.
Pros
- No application or membership fees
- Highly rated by consumers
Cons
- HELOC options aren’t available
- Strict credit-score eligibility requirements
How to Get the Best Home Equity Loans in Arizona
Starting with a list of top-rated Arizona lenders is a great first step, but there are several additional actions you can take to help secure the best home equity loan or home equity line of credit available.
1. Check Your Credit Score and Financial Standing
Lenders evaluate your creditworthiness by looking at your credit score, credit history, debt-to-income or DTI ratio, and payment history. Most require a minimum credit score of 620, but borrowers with scores above 700 typically qualify for the lowest interest rates and better loan terms.
2. Calculate Your Home Equity
To estimate how much you could to borrow, subtract your current mortgage balance from your home’s current appraised value. Most lenders allow borrowing up to 80% of your available equity. If you’re unsure about the numbers, many lenders will offer assistance in determining your home’s value and estimating your loan amount.
3. Compare Lenders and Review Offers
Online marketplaces like LendingTree allow you to view personalized offers from multiple lenders after completing a simple prequalification process. This step does not affect your credit history or show up on your credit report.
When comparing lenders, focus on key details such as:
- APR
- Closing costs, like origination and application fees
- Available loan amounts
- Draw period (for HELOCs)
- Repayment terms
4. Submit Your Loan Application
Once you choose a lender, you’ll need to complete the application and provide supporting documentation. These may include items on the following list.
- Proof of income
- Full credit reports
- Property valuation records (some lenders will assist)
- Tax returns
- Bank statements
- Valid ID
- Proof of residency
Your lender or marketplace provider may have performed a soft credit inquiry to get you to this point. However, you must undergo a hard credit inquiry when you submit your formal loan application. This inquiry will temporarily affect your credit score and will appear on your credit report.
After submitting, approval times can vary. Some borrowers may receive an answer within minutes, while others may wait a few days to a few weeks to complete the process and receive their lump sum or establish their lines of credit HELOC.
