Best HELOC Lenders in Memphis, TN 2026
Memphis homeowners average $108,000 in tappable equity, with East Memphis and Germantown generating the strongest HELOC demand in the Mid-South market. HELOC rates run near 8.9% in Memphis, and national digital lenders fully cover the market with 85% combined LTV for qualifying borrowers with 680-plus credit scores and verified employment.
Updated June 2026 · Editorial Independence Policy
Best HELOC Lenders in Memphis, TN 2026
| Lender | Rate Type | Max LTV | Draw Period | Best For |
|---|---|---|---|---|
| Figure (Editor's Choice) | Fixed | 95% | 5 years | Fastest funding (5 days) |
| PenFed Credit Union | Variable | 90% | 10 years | Lowest variable rates |
| Bethpage Federal | Variable | 90% | 10 years | No closing costs |
| Bank of America | Variable | 85% | 10 years | Preferred Rewards discount |
| U.S. Bank | Variable | 85% | 10 years | High credit limits |
| Navy Federal | Variable | 95% | 20 years | Military & veterans |
All six lenders above serve Memphis, TN. Rate data current as of June 2026. Your actual rate depends on credit score, combined LTV, draw amount, and property type.
Frequently Asked Questions
HELOCs in Memphis: FAQ
HELOC rates in Memphis currently average near 8. 9% for well-qualified borrowers with strong credit and combined LTV below 80%.
Figure offers a fixed-rate HELOC starting around 8. 25% APR for top-tier applicants in TN.
Variable-rate products from PenFed, Bethpage, and Bank of America track the prime rate plus a margin and adjust quarterly. Borrowers with 740+ FICO and less than 70% combined LTV consistently qualify for the lowest available rates in Memphis.
Most lenders serving Memphis cap combined LTV at 85%, meaning your existing mortgage balance plus the HELOC cannot exceed 85% of your home's current appraised value. Memphis homeowners average $108,000 in tappable equity, with East Memphis properties typically at the higher end.
On a Memphis home valued at $500,000 with a $250,000 mortgage, a 85% combined LTV limit supports a credit line up to $175,000.
Figure is the fastest HELOC lender in Memphis, with a 5-business-day funding guarantee for fully digital applications that clear automated underwriting. PenFed and Bethpage Federal typically close in 2-4 weeks.
Bank of America and U. S.
Bank take 3-6 weeks due to traditional branch-based underwriting processes. Navy Federal averages 20-30 days for eligible military borrowers.
If speed matters, Figure is the clear leader in Memphis and covers TN statewide.
HELOC interest is deductible on federal taxes if the funds are used to buy, build, or substantially improve the home securing the line of credit. This applies to Memphis homeowners the same as anywhere in the US.
If you use the HELOC for other purposes such as paying off credit cards or buying a vehicle, the interest is not deductible. The deduction applies to interest on up to $750,000 of combined home acquisition debt for loans originated after December 15, 2017.
Consult a licensed tax advisor to confirm deductibility for your specific situation.