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For the past few years, elevated interest rates have benefited savers with higher yields, but they've made borrowing significantly more expensive. Many well-known borrowing options are costly now. The reports the average annual now stands at nearly 22%, and it's not uncommon for credit card APRs to approach 30%. Personal loans aren't exactly a bargain either, with average rates now near 12%. 

But if you're a homeowner with in your home, you may qualify for a more affordable . and tend to offer lower rates than other credit products. As of April 30, 2025, the is 8.36%, while the average HELOC rate is 7.95%. Some of the most competitive lenders are even offering rates lower than that, making this borrowing option even more accessible.

While both equity products let you borrow against your home's equity, they're distinctly different. Each comes with its own set of terms, costs and eligibility requirements. As you review the differences between home equity loans and HELOCs, you might also want to know which option is easier to get approved for. We spoke with some experts to see which product they think is easier to qualify for now.

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"A HELOC may be easier to qualify for than a home equity loan due to the interest rates," says Jeremy Schachter, branch manager at Fairway Independent Mortgage Corporation. "A HELOC is usually based on the prime rate plus a margin and an interest-only payment versus a home equity loan that is a fixed rate."

Lately, , making it easier for new borrowers to qualify and helping existing borrowers save on interest. The current average HELOC rate of 7.94% is down more than two percentage points .

While , the drop hasn't been as sharp. That may be why more borrowers are turning to HELOCs. "I do find most borrowers opting for HELOCs these days in anticipation of future Fed rate cuts," says Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage in New York City.

In addition to lower rates, some HELOC lenders offer more flexibility when it comes to your . "Some lenders have more lenient DTI requirements on HELOCs depending on the equity of your home and your credit scores," Schachter says. "Usually, the higher the credit score and the more equity in the home, the lower the debt-to-income requirements."

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While it's helpful to know whether a is easier to obtain, that shouldn't be the only factor in your decision. It's more important to consider how you plan to use the funds, how you want to them and whether you prefer fixed or flexible terms.

"It really isn't a question of whether or not it's easier to qualify for one versus the other," says Mason Whitehead, branch manager at Churchill Mortgage in Dallas, Texas. "It is usually a question of what is best for the client."

For example, a HELOC may give you more flexibility if you're planning a you'll complete in phases and you want the option to make multiple withdrawals over time. A home equity loan, on the other hand, may be better suited for or covering a large, one-time expense where predictable payments are a priority.

"This is always so specific to the individual, but make sure before applying for either that you get a full understanding of how the product works," says DeFlorio. "If you are very risk-averse, you may consider the home equity line which has fixed payments, although every indication points to the Fed continuing their rate cutting cycle in the second half of the year."

Qualifying is only part of the equation. Take a close look at how you plan to use the funds and which funding option —  — properly suits your needs. Also keep in mind that while HELOCs may be easier to qualify for right now because of their lower rates, that won't always be the case. and will almost certainly rise again in the future. It's also important to remember that equity lending products generally offer lower rates than other forms of credit because your home serves as collateral on the loan, so only withdraw an amount you can comfortably afford to repay to avoid the .