Best No-Appraisal Home Equity Loans

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Since 2016, Money’s editorial team has been researching and comparing various companies that offer home equity lending products. Our analysis of the industry takes into consideration the scope of vendor offerings, affordability, qualification requirements, financial stability and customer reviews. It is our aim to provide our readers with the most useful and accurate recommendations.

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 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 is best undertaken with an apples-to-apples comparison such as those below.

Our Top Picks for Best No-Appraisal Home Equity Loans

• Discover: Best for Getting an Automatic Valuation
• Spring EQ: Best Home Equity Loan for Bad Credit and No Appraisal
• Connexus Credit Union: Best Credit Union No-Appraisal Home Equity Loan
• Navy Federal Credit Union: Best No-Appraisal Home Equity Loan for Veterans

Best No-Appraisal Home Equity Loans Reviews

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Why we chose it: Discover employs an automated valuation model (AVM) to determine the value of your home. This can be done in seconds and has no associated fees.

To sweeten the pot even further, Discover has no application, origination or processing fees, as well as no charges at closing. This combined with low fixed-rate APRs and generous repayment terms makes Discover one of our top options for tapping into your home’s equity.

You can borrow $35,000 to $300,000 and enjoy the security of a fixed interest rate and repayment terms of up to 30 years. Fixed-rate APRs are competitive, making Discover an affordable choice for home equity needs.

Homeowners looking to get a home equity loan of less than $150,000 are only required to have a credit score of 620 and a score of only 700 for loans of up to $300,000. Its loan-to-value (LTV) ratio of up to 90% is higher than many of its competitors. However, Discover doesn’t offer a five-year repayment term (terms range from 10 to 30 years), and its funds availability is a little slower than some competitors. Eligibility determination takes one to two weeks, with a final decision coming within three weeks. Though there are no closing fees, you'll have to wait up to two weeks for funding after the decision.

Read more about Discover’s home equity loan products

NMLS ID 684042

See rates on Discover's Secure Website >>

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Why we chose it: With relaxed credit score requirements, including a debt-to-income ratio of 50% or better, loan terms of up to 30 years and instant qualification, Spring EQ offers a solid product for those with less-than-perfect credit.

With a Spring EQ home equity loan, you can benefit from a fixed rate even if your credit isn't the greatest. Applicants with a credit score of 640 or higher and a debt-to-income ratio of up to 50% can qualify for a home equity loan. Those with a credit score of 700 or higher can qualify for a loan of up to 95% of their home’s value. The maximum amount you can borrow from Spring EQ is $500,000.

You can opt for a loan term of five to 30 years, making monthly payments manageable. Spring EQ offers instant qualification, can provide you with funding in 21 days on average and as fast as 14 days.

The interest charged on a Spring EQ home equity loan depends on a variety of factors, such as the loan size, your credit score and the total value of your home. 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

NMLS ID 1464945

See rates on Spring EQ's Secure Website >>

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Why we chose it: The best rates and flexible repayment terms make Connexus a solid recommendation for those who wish to work with a credit union instead of a bank.

Connexus Credit Union is a great option for borrowers looking to take out smaller home equity loans at a very attractive introductory APR. Connexus also has branch offices should customers prefer in-person engagement.

Though its home equity loans are only available to credit union members, the membership process is straightforward and relatively quick. Connexus is positively reviewed by most customers, who cite excellent customer service and flexibility in payment arrangements for borrowers who fall on hard times.

Loans starting at $5,000 are available up to 90% of a home’s total equity, though final loan amounts will be decided by the borrower’s credit score, debt-to-income ratio and the loan-to-value ratio of the borrower’s home.

Read more about Connexus’ home equity loan products

NMLS ID 649316

See rates on Connexus' Secure Website >>

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Why we chose it: With no application or origination fees, equity loans up to the total value of a borrower's home and flexible terms, NFCU is a great option for veterans and active-duty military members and their families, Department of Defense personnel and household members of affiliated families who are looking for a no-appraisal home equity loan with a fixed interest rate.

Repayment terms are adequate, starting at five years and going up to a maximum repayment term of 20 years. This may mean higher monthly payments than with some competitor offerings.

The credit union will pay for closing costs on new fixed-rate home equity loan applications dated on or after June 1, 2023, representing a savings ranging from $300 to $2,000 over the life of the loan. Applicants are subject to all of the usual checks and limitations, including those mandated by credit score, the loan amount and the loan-to-value ratio of the property in question.

NMLS ID 399807

See rates on Navy Federal'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.

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LendingTree

For more than 20 years, LendingTree has helped homeowners find attractive 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 >>

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U.S. Bank

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 application process makes U.S. Bank’s offering a little too vague compared to competitor’s offerings.

See rates on U.S. Bank's Secure Website >>

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KeyBank

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.

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 >>

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No-Appraisal Home Equity Loan Guide

If you are 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 home without the need for an appraisal. Unlike traditional home equity products, these do not require a third-party professional appraiser to assess the home’s value. Homeowners use these loans to consolidate debt, carry out 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 finance 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 to pay. However, the speed of this loan comes at a cost, as the interest rate is typically higher than with traditional loans.

Home equity loans, also known as second mortgages, will increase your combined loan-to-value (cltv).

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. Generally, the lower the mortgage balance (and the higher the amount of equity), the more likely you can get through the process without an appraisal. Here are some tips to help you get a home equity loan 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

To have a better chance of getting your loan approved, check the lender’s qualification requirements before applying. 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 when you initially bought your new home, allowing you to benefit from lower interest payments while taking advantage of the increased equity in your home.

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.

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

• Discover: Best for Getting an Automatic Valuation
• Spring EQ: Best Home Equity Loan for Bad Credit and No Appraisal
• Connexus Credit Union: Best Credit Union No-Appraisal Home Equity Loan
• Navy Federal Credit Union: Best No-Appraisal Home Equity Loan for Veterans