HELOC or home equity loan with bad credit: what lenders allow at a 580 to 619 score

8 min read · LenderMatch Learn

Getting a HELOC with bad credit is possible but hard. Many lenders publish minimum scores of 620 to 680, and the lowest published HELOC minimums we found start at 600. Lenders that go that low usually let you borrow less, because lenders tend to lower the borrowing limit as scores fall.

If your score is between 580 and 619, the deciding factors are how much equity you have, your recent mortgage payment history and your debt-to-income ratio. Below are the published floors, how a low score shrinks your limit, and the alternatives that accept lower scores. Because each lender draws its line in a different place, comparing several lenders at once is the fastest way to find the ones that may work with your score.

Can I get a HELOC with bad credit?

There is no law that sets a minimum credit score for a HELOC. Each lender sets its own, so "bad credit" means different things at different lenders. FICO's own scale, as published by myFICO, runs from 300 to 850: below 580 is "poor," 580 to 669 is "fair," and 670 to 739 is "good."

In HELOC terms, the line that matters is usually 620. Most published minimums sit at or above it, so a score from 580 to 619 puts you below the floor at most lenders. That narrows your options to a few lenders, which typically ask for more equity and a clean recent payment record in return.

If your score is 620 or a little higher, our guide to a HELOC with a 620 credit score covers that range in detail, and HELOC requirements explains every item lenders check.

What is the lowest credit score for a HELOC?

Here is what lenders publish on their own pages. Minimums change, so confirm with the lender before you apply.

• A national online lender: says most lenders require at least 620, while some, including its own home lending arm, "start lower at 600," with approval also depending on equity, income and other factors (updated June 1, 2026).
• A national mortgage lender: requires a minimum credit score of 640 for a HELOC (updated May 1, 2026).

The Mortgage Reports, which surveyed lender requirements in February 2026, puts the typical cutoff between 620 and 680. We did not find a HELOC program publishing a minimum below 600.

Can I get a HELOC with a 580 or 600 credit score?

At 600, a few programs may consider you. At 580, a HELOC is unlikely with the lenders we checked, and the alternatives further down are usually more realistic.

Where a lender does accept a lower score, the trade-off shows up in how much you can borrow. Lenders cap your combined loan-to-value (CLTV): every loan on the home divided by its value. Lenders commonly lower that cap as scores fall, so the same home supports a smaller line at a low score than at a high one. Each lender sets its own tiers, but the pattern is the same: a lower score means a lower cap.

Worked example: a 600 score on a $400,000 home

Say your home is worth $400,000, your score is 600 and your gross income is $6,000 a month. Suppose a lender that accepts your score caps all loans on the home at 50% of its value (an example limit for illustration; each lender sets its own). Here is how that cap plays out for two different mortgage balances:

1. You owe $150,000. $400,000 × 50% = $200,000, minus $150,000 owed = up to $50,000. Under an 80% cap, the same home would allow $170,000.
2. You owe $220,000. $400,000 × 50% = $200,000, which is less than you already owe. Room under a 50% cap: $0.

Now the debt-to-income check for the first homeowner. Current debt payments are $2,100 a month, or 35% of income. A $50,000 line at an example 10.00% rate (prime of 7.00% as of October 20, 2026, plus a 3.00% margin) has an interest-only payment of about $417. That brings payments to $2,517, or about 42%, which would fit under an example 45% limit with little to spare.

With a low score, equity does most of the work. Run your own numbers in the home equity calculator, and see what a line would cost each month in the HELOC payment calculator. Our guide on how much equity you can borrow explains the CLTV formula step by step.

HELOC with bad credit and late payments

Late payments on your mortgage weigh more than almost anything else. Payment history is the largest part of a FICO score, 35% according to myFICO, and lenders also read the payment record directly, not just the score.

• The last 12 months matter most. HUD's FHA cash-out rules require that every mortgage payment in the previous 12 months was made within the month it was due.
• Old late payments fade. The CFPB says credit reporting companies can generally report negative payment information for up to seven years.

If you had a late payment recently, 12 clean months from that date is often the single biggest step you can take.

Home equity loan with bad credit

A home equity loan pays a lump sum, usually at a fixed rate, instead of a revolving line. Lenders review the same things for both: your score, your CLTV and your debt-to-income ratio. Our HELOC vs home equity loan guide compares the two.

Be wary of offers promising "guaranteed approval." The FTC says banks and other legitimate lenders won't promise or guarantee you a loan before you apply, and warns that scammers often promise a loan, then ask for a fee before you get it.

Alternatives if your score is below 620

FHA cash-out refinance. This is the option with the lowest published floor. Under HUD Handbook 4000.1 (last revised August 12, 2026), a borrower is not eligible for FHA financing with a decision score below 500. For a cash-out refinance, HUD also requires that:

• the new loan is no more than 80% of the home's value;
• you have owned and lived in the home as your main residence for the past 12 months;
• every mortgage payment in the past 12 months was made within the month due.

Lenders may set higher minimums than HUD's. The bigger catch is that a cash-out refinance replaces your whole mortgage. With the Freddie Mac 30-year fixed average at 7.40% (week of October 15, 2026), that can cost a lot more if your current rate is lower.

Conventional cash-out refinance. Fannie Mae removed its 620 minimum credit score for loans run through its Desktop Underwriter system, for new casefiles created on or after November 16, 2025. Lenders can still set their own minimums, and the same rate trade-off applies. Cash-out refinance vs HELOC walks through the math.

In Texas, state law limits all loans on a homestead to 80% of its value but sets no credit score; each lender sets that. Our Texas HELOC guide covers the state's rules.

How to improve your odds of HELOC approval with bad credit

1. Pull your reports and fix errors. You can get free credit reports from Equifax, Experian and TransUnion once a week at AnnualCreditReport.com, according to the CFPB. Correcting a real error may help your score without any new debt.
2. Make 12 months of on-time payments. Especially on your mortgage, since many programs look back exactly 12 months.
3. Pay down card balances. Amounts owed are 30% of a FICO score (myFICO).
4. Ask for less. A smaller line lowers your CLTV and the payment counted in your debt-to-income ratio.
5. Compare in a short window. Each lender sets its own floor and tiers, so one decline doesn't mean every lender will say no. See whether rate shopping hurts your credit for how inquiries are counted.

Frequently asked questions

Can I get a HELOC with a 580 credit score?

It is unlikely. None of the HELOC programs we checked on October 22, 2026 published a minimum below 600. At 580, an FHA cash-out refinance is often the more realistic way to tap equity, because HUD allows FHA loans with scores as low as 500, though lenders may set higher minimums.

Can I get a HELOC with a 600 credit score?

Possibly, with a small number of lenders and usually with a lower limit. One national online lender says its minimum may start at 600.

Can I get a HELOC with a 500 or 550 credit score?

We did not find any HELOC lender publishing a minimum that low. Scores under 580 fall in FICO's "poor" range. An FHA cash-out refinance has a 500 floor under HUD rules, but it replaces your current mortgage.

Does adding a co-borrower with better credit help?

Not always. Some lenders use the lowest score among the borrowers. HUD's FHA rules, for example, use the lowest decision score of all borrowers. A co-borrower's income can still lower your debt-to-income ratio, so ask each lender how it treats both.

Will applying for a HELOC hurt my credit?

When you apply, a lender may check your credit with your permission, and that hard inquiry can affect your score. LenderMatch itself never pulls your credit. Our guide on whether rate shopping hurts your credit explains how several mortgage inquiries are counted.

Are "guaranteed approval" home equity loans real?

No legitimate lender can promise approval before reviewing your application. The FTC says banks and other legitimate lenders won't promise or guarantee you a loan or credit before you apply.

See which lenders could work with your score →