Updated

HELOCs in California: how much you can borrow and the state rules that apply

Own a home in California and want cash without giving up the rate on your current mortgage? A home equity line of credit can do that. California has no Texas-style HELOC limits, but its community property, anti-deficiency and Prop 13 rules still affect you. Here is what they mean in plain English, plus the numbers for California homeowners.

Median value of an owner-occupied California home
$759,500
California homeowners with no mortgage at all
33.9%
Change in California home prices over 5 years
+17.3%
Prop 13 cap on yearly assessed value increases, and a HELOC doesn't reset it
2%

See what California lenders could offer you

Free, takes about 2 minutes, and LenderMatch never pulls your credit.

What type of property do you have?

You'll answer a few more questions about your home on the next screen.

HELOC rates in California right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in California opened at 7.88%, and half opened between 6.50% and 8.75%, across 86,870 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the California median was 8.13%. Home equity loans in California, which usually have a fixed rate, closed at a median of 8.50%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve)
7.00%
Median California HELOC rate at opening, 2025 (HMDA)
7.88%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac)
7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in California?

California law doesn't set a home equity borrowing cap the way Texas does. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

With a median home value of $759,500, more than double the U.S. median of $360,600, many California owners have a lot of equity to work with.

Home value ×80% −what you owe now =a likely maximum line

Example
Home value (the California median for owner-occupied homes)
$759,500
80% of value (a common lender limit, not a California law)
$607,600
Current mortgage balance
$400,000
Maximum line of credit
$207,600

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income.

Run your own numbers in our home equity calculator

California home prices about doubled from 2014 to 2025

California House Price Index by year, 2014 to 2025Column chart. The index rises from 210.1 in 2014 to 421.3 in 2025, with the largest yearly gains in 2021 and 2022.0100200300400500Index (1991 = 100)2014: index 210.1320142102015: index 225.00, up 7.1% from 20142016: index 240.71, up 7.0% from 20152017: index 259.26, up 7.7% from 201620172018: index 275.92, up 6.4% from 20172019: index 286.65, up 3.9% from 20182020: index 308.16, up 7.5% from 201920202021: index 365.26, up 18.5% from 2020+18.5%2022: index 402.49, up 10.2% from 2021+10.2%2023: index 404.35, up 0.5% from 202220232024: index 420.19, up 3.9% from 20232025: index 421.31, up 0.3% from 20242025421 California House Price Index by year, 2014 to 2025Column chart. The index rises from 210.1 in 2014 to 421.3 in 2025, with the largest yearly gains in 2021 and 2022.0100200300400500Index (1991 = 100)2014: index 210.1320142102015: index 225.00, up 7.1% from 201420152016: index 240.71, up 7.0% from 201520162017: index 259.26, up 7.7% from 201620172018: index 275.92, up 6.4% from 201720182019: index 286.65, up 3.9% from 201820192020: index 308.16, up 7.5% from 201920202021: index 365.26, up 18.5% from 20202021+18.5%2022: index 402.49, up 10.2% from 20212022+10.2%2023: index 404.35, up 0.5% from 202220232024: index 420.19, up 3.9% from 202320242025: index 421.31, up 0.3% from 20242025421

On the FHFA House Price Index, California home prices rose about 100% from 2014 to 2025, with the biggest jumps in 2021 (+18.5%) and 2022 (+10.2%). Prices have been flat since: they were down 0.2% in the year to mid-2026, 48th of the 50 states and DC. Owners who bought before 2021 have seen the biggest gains.

Source: FHFA House Price Index, California, purchase-only, through 2026 Q2.

Chart data as a table
California House Price Index, annual average (1991 = 100)
YearIndex (1991 = 100)
2014210.13
2015225.00
2016240.71
2017259.26
2018275.92
2019286.65
2020308.16
2021365.26
2022402.49
2023404.35
2024420.19
2025421.31

The California rules that affect a HELOC, in plain English

California has no special HELOC limits like a borrowing cap or a waiting period. These general California laws still shape your HELOC. They are summarized here in plain words, not quoted.

Before you sign

Both spouses sign.
California is a community property state. If your home is community property, both spouses have to sign to put a loan against it.
Use a licensed lender.
Lenders that are not banks or credit unions need a California license from the Department of Financial Protection and Innovation (DFPI), and the loan officer needs one too.
Prop 13 doesn't reset.
A loan secured by your home isn't a change in ownership, so opening a HELOC doesn't trigger a new property tax assessment.

If you can't pay

Purchase-loan protection usually skips a HELOC.
California blocks a lender from collecting a shortfall on a loan used to buy your home. A HELOC opened later to take cash out was not used to buy the home, so this protection does not apply to it.
Cash-out money is not protected either.
If you refinanced your purchase loan on or after January 1, 2013, the refinanced part keeps the protection, but any new cash you took out does not.
If the HELOC lender forecloses out of court.
When the HELOC lender itself sells your home at a trustee's sale, it can't come after you for any shortfall.
If your first mortgage forecloses.
If the first mortgage lender sells the home and the sale wipes out a HELOC you opened after buying, the California Supreme Court has said the HELOC lender can still sue you for what you owe on the line.
Short sales.
If the HELOC lender agrees in writing to a short sale of your home (up to four units), it can't collect the shortfall from you or charge extra for its consent.
First-mortgage-only foreclosure rules.
California's Homeowner Bill of Rights outreach and loss-mitigation steps apply only to first mortgages, not to a HELOC in second position.
The homestead exemption doesn't stop your lender.
It protects at least $300,000 of equity (or the county median sale price, up to $600,000, both adjusted for inflation since 2022) from judgment creditors, but not from foreclosure of a loan you signed.

California homeowners by the numbers

Median value of an owner-occupied California home
$759,500
U.S.: $360,600
California homeowners with no mortgage at all
33.9%
U.S.: 40.3%
Owner-occupied homes in California
7.7 million
Median yearly property tax paid in California
$5,369
U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

One request, multiple California lenders

  1. Tell us about your home once.

    A short form about your home, what you owe and how much you'd like. About 2 minutes.

  2. Lenders compete for it.

    Participating lenders who lend in California see your request.

  3. You compare and choose.

    Pick the offer that fits, or none at all. It's free either way.

LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

See my California options

Frequently asked questions

Does my spouse have to sign for a HELOC in California?

If your home is community property, yes. California requires both spouses to sign to put a loan against community real property.

Do California's anti-deficiency laws protect a HELOC?

Only partly. If the HELOC lender forecloses with a trustee's sale, it can't collect a shortfall. But if your first mortgage forecloses and wipes out a HELOC you opened after buying, the HELOC lender can still sue you for the balance.

Will a HELOC raise my property taxes under Prop 13?

No. Taking out a loan secured by your home isn't a change in ownership, so it doesn't trigger a reassessment. Your assessed value generally can't rise more than 2% a year.

Does a cash-out refinance keep my anti-deficiency protection?

Only for the part that paid off your purchase loan. On refinances since January 1, 2013, any new cash you took out is not protected.

Can I do a short sale if I have a HELOC?

Yes, if the HELOC lender agrees in writing. Once it does, it can't collect the shortfall from you or charge you extra for agreeing.

How do I check that a HELOC lender is licensed in California?

Search the DFPI licensee listing or NMLS Consumer Access, or call the DFPI at (866) 275-2677 with the company's NMLS ID.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

Keep reading

See your payment while the line is open and what it becomes once repayment starts.

Estimate your HELOC payment

Find out what your California home could unlock

Free, about 2 minutes, and no impact on your credit to check.

You're never obligated to take an offer.

Pick one to start the form.

Buying a home? The purchase form opens soon.

Sources

  • California Family Code 1102 (leginfo.legislature.ca.gov)
  • California Code of Civil Procedure 580b, 580d, 580e, 703.010 and 704.730
  • Black Sky Capital, LLC v. Cobb, California Supreme Court, May 6, 2019 (S243294)
  • California Civil Code 2924.15; Financial Code 22100 and 50002; Revenue and Taxation Code 62 and 218
  • California State Board of Equalization, Publication 29, California Property Tax (March 2025)
  • California DFPI, California Residential Mortgage Lending Act licensing page
  • FHFA House Price Index, state data through 2026 Q2
  • U.S. Census Bureau, American Community Survey 2024
  • Federal Reserve H.15 release, October 27, 2026
  • Freddie Mac Primary Mortgage Market Survey, October 29, 2026
  • Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act data, 2025 (HELOC and home equity loan rates at opening, LenderMatch analysis)

Last reviewed October 22, 2026. This page explains California law in general terms and isn't legal advice. LenderMatch is not a lender and does not make loans or credit decisions.