Discover doesn’t just offer credit cards anymore. The bank has grown over the years to include home lending services, including home equity loans. Discover home equity loans are known for offering no processing fees or origination charges, and it does not require appraisal fees. It ranks high on our list of the best home equity loan providers. The bank also has a more generous lending policy, allowing borrowers to access up to 90 percent of their home’s equity.
While its credit score and minimum loan requirements are slightly more restrictive than some competing banks’, Discover makes up for it with flexible terms between 10 and 30 years, loans for second homes and investment properties, and low upfront costs. The entire application process also happens online, as Discover does not have physical locations, making it more convenient and accessible for many potential borrowers. This review will cover the ins and outs of Discover home equity loans, discuss the details, and cover customer opinions of the lender.
Pros
Loans for up to 90 percent of the home’s equity are available
Terms ranging from ten to 30 years
Low or no upfront costs
Cons
No home equity lines of credit (HELOCs) are available
Higher minimum credit score and borrowing requirements than many others
Higher loan amounts can require much higher credit scores
Discover Home Equity Loan Features and Benefits
With a strong online presence and national availability, Discover home equity loans are likely to pop up in most prospective borrowers’ searches. It offers larger loans than many competing banks and has no closing costs or upfront application fees. Its lack of a physical presence may be a downside to some, but it allows the company to offer around-the-clock customer service, and borrowers can begin the application process online or by phone.
- No application fees or closing costs
- Terms of 10, 15, 20, or 30 years available
- Discover operates in all states
- The borrower must have a 680 credit score and a 43% debt-to-income ratio to start
- Loans for second homes and vacation properties are available
Discover Home Equity Loan Editorial Rating
Trusted Company Reviews Rating Score for Discover: 8.8
We ranked Discover Home Loans highly for the company’s intuitive website and app, low upfront costs, and flexible loan terms. The bank’s slightly more restrictive credit score and minimum loan requirements may put it out of reach for some borrowers, but for those who qualify, Discover is known for providing solid customer service, and customers can access up to 90 percent of the equity in their homes.
| Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| 8%-12.92% | $35,000-$300,000 | 680 | 10-30 years |
What We Like
There’s a lot to like with Discover’s home equity loans. The bank’s wide-ranging availability and low costs make it appealing to people who can qualify, and the company has a range of terms available.
- No closing costs, including application fees, appraisal costs, or origination fees
- Intuitive website and mobile app
- Easy-access customer service, by phone or online
What We Don’t Like
Nobody’s perfect, but at least the issues with Discover home equity loans aren’t earth-shattering. The bank reserves higher loan amounts for borrowers with the best credit scores, and there are no home equity lines of credit available. Additionally, its high minimum amount of $35,000 could make its loans too large for many people.
- Discover has high minimum loan and credit score requirements
- Borrowers with average credit scores may not be eligible for higher loan amounts
About Discover Home Equity Loan
Discover Home Loans operates in a crowded industry, but it’s one of few lenders in the space that offer few or no upfront costs and 50-state accessibility. Depending on their credit score, borrowers may take loans of up to $300,000, though the top amounts are generally reserved for the most well-qualified borrowers. Unlike some national lenders, Discover does not offer home equity lines of credit, which can be better for borrowers considering smaller amounts, but its rates are often below the national average.
Discover Home Equity Loan Terms and Conditions
Borrowers can access up to 90 percent of their home’s equity in loans of up to $300,000. Discover’s terms include 10, 15, 20, or 30 years, and there are zero costs at closing. The bank only offers fixed-term loans, though that insulates borrowers from potential rate hikes and fluctuations over time. Borrowers can use the funds for a variety of reasons and recommend home improvements or debt consolidation.
Discover Home Equity Loan Requirements
Discover requires a minimum credit score of at least 680, though it’s good to note that borrowers wanting larger loans may be required to have a higher credit score. The bank requires a history of responsible credit use, verifiable income and employment, and a debt-to-income ratio of 43 percent or lower.
How to Apply for a Home Equity Loan From Discover
Discover’s loan application process is straightforward. Prospective applicants can visit its website or download the mobile app to get started, and the bank offers phone support with the ability to complete parts of the application with a representative.
Discover Home Equity Loans Reviews From Consumers
Despite the upsides, Discover has received its fair share of both positive and negative reviews, like any other bank. Many of the negative reviews target the lender’s internal communications processes, with borrowers saying it took much longer than expected to get an answer to a question that required more than one department’s input. Others complained that Discover makes big promises up front, only to change the offer after the fact, with higher rates or different loan amounts than expected.
On the other hand, the bank earned high marks from many borrowers who said that its funding and approval times were surprisingly fast. Others say Discover’s closing process was exceptionally smooth, and many have noted approval of the bank’s $0 upfront fees when applying for a loan.
Discover Vs USBank Home Equity Loan
U.S. Bank and Discover are similar in many ways, but U.S. Bank has a slightly broader product offering and less restrictive approval requirements. Borrowers can apply for home equity lines of credit through U.S. Bank, which Discover doesn’t offer. It also has a lower 660 credit score requirement and has many of the same online services Discover does.
| U.S. Bank | Discover | |
| Online Application? | Yes | Yes |
| Home Equity Loans (HELOCs) | Yes | No |
| Minimum Credit Score | 660 | 680 |
| Physical Branches? | Yes | No |
| Maximum Equity Amount | 80% | 90% |
Discover Home Equity Loan Alternatives
Rocket Mortgage may be Discover’s closest competitor, as it’s another completely online lender with convenient customer service and a similar product offering. Better.com is another solid alternative, but it also has a 680 credit score requirement. On the upside, it offers 90 percent equity loans like Discover and has a robust online presence. Borrowers looking for HELOCs would be well served by checking out Upstart, as it has a nine-day median closing time and offers credit lines of up to $150,000.
Also check out our leading top-company options:
Frequently Asked Questions
How difficult is it to get a home equity loan from Discover?
How long does it take to close a home equity loan with Discover?
Does Discover require an appraisal for home equity loans?
Source
Logo image source: discover.com
After earning an MBA, Chris began writing about tech and finance as part of his work as a bank analyst and consultant. Wanting to pursue his first love in life, Chris jumped ship and turned his focus to the automotive industry, first as a freelance writer for Forbes, J.D. Power, The Drive, and U.S. News & World Report, before starting YourTestDriver.com and the America on the Road Radio Show. Chris brings more than ten years of experience in product reviews, in-depth analyses, and news, and has been recognized as a significant contributor in building the future of the automotive media field.
Chris Teague
Last Updated: March 3, 2025
Editorial Reviews
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