Courtesy of ShutterstockGet your debt all under one umbrella with these competitive HELOCsHomeowners build equity through appreciation and with each monthly mortgage payment. While more equity gets you closer to being debt-free on your home, you can borrow against your home equity for any expense, including debt consolidation. Most home equity loans and HELOCs have lower APRs than unsecured loans and lines of credit, such as credit cards. Therefore, it makes sense to tap into a HELOC for debt consolidation. This guide outlines the best HELOCs for debt consolidation and details to consider before approaching a lender. I have been doing deep dives on financial products for over five years and will share some of the top choices to consider. 4 Best HELOC Lenders for Debt ConsolidationBest HELOC for Self-Employed Workers: Angel Oak Mortgage SolutionsBest HELOC for Fixed Rates: New American FundingBest HELOC for Accessing 90% of Home Equity: SoFi MortgageBest HELOC for No Closing Costs: FourLeaf Federal Credit UnionTable of Contents4 Best HELOC Lenders for Debt ConsolidationBest HELOC for Self-Employed Workers: Angel Oak LendingBest HELOC for Fixed Rates: New American FundingSee All 15 ItemsBest HELOC for Self-Employed Workers: Angel Oak LendingGood Fit For:Flexible Mortgage OptionsVIEW PROS & CONS:securely through Angel Oak Mortgage Solutions's websitePros: You can qualify for a HELOC with business bank statementsBorrow up to $750,000Loan terms range from 15 to 25 yearsStart with interest-only payments during the draw phaseCons: Rates and fees may be higherThe program is not available in TennesseeAngel Oak Lending is a non-QM mortgage lender that makes it easier for self-employed workers to tap into their home equity. The company lets you use business bank statements to qualify for a HELOC while letting you access up to $750,000 in home equity.The lender also offers generous term lengths, ranging from 15 to 25 years. During the draw period, you will have plenty of time to make interest-only payments before having to pay off some of the principal.However, non-QM mortgage lenders charge higher rates and fees than the competition. Traditional lenders may reject a business owner based on their taxable income since self-employed workers tend to have more tax deductions. Non-QM mortgage lenders offer a unique solution, but they use that to their advantage when setting rates and fees. Tennesseans must look for a different option since Angel Oak Lending’s HELOCs are unavailable in their state.Best HELOC for Fixed Rates: New American FundingGood Fit For:Versatile Lending OptionsVIEW PROS & CONS:securely through New American Funding HELOC's websitePros: Fixed-rate HELOCsAvailable for single-family homes, condos and townhousesHELOCs are available for primary residences, secondary residences and investment propertiesCons: $400,000 HELOC limitNot available in Hawaii, New York or West VirginiaNew American Funding offers fixed-rate HELOCs and is available for various property types. While most HELOC lenders let you borrow against single-family homes, some don’t offer condos and townhouses. New American Funding offers HELOCs for those properties, and you can also borrow against a primary residence, secondary residence or investment property.The lender only lets you borrow up to $400,000. This may be enough for some homeowners, but you can get a higher maximum with other lenders. Furthermore, you must look for other HELOCs in Hawaii, New York or West Virginia.Best HELOC for Accessing 90% of Home Equity: SoFi MortgageGood Fit For:Current SoFi MembersVIEW PROS & CONS:securely through SoFi Mortgage Purchase's websitePros: Access up to 90% of your home equityCompetitive ratesTerms are up to 30 yearsCons: You cannot access more than $500,000 of home equityNo physical branchesSoFi has generous LTV ratios for homeowners. You can tap into up to 90% of your home equity, while most HELOC lenders limit you to 80%-85% of home equity. The online lender also offers competitive rates with terms that can be as long as 30 years. However, SoFi does not have any physical branches, which can be a dealbreaker for people who want to do their banking in person. Furthermore, you cannot access more than $500,000 of home equity through a SoFi HELOC. Homeowners who want to access large credit lines on multi-million dollar properties may want to look elsewhere.Best HELOC for No Closing Costs: FourLeaf Federal Credit UnionPros: No closing costsCompetitive APRsChoose between fixed or variable rate HELOCsCons: You can only borrow up to $500,000The minimum credit score is 670FourLeaf Federal Credit Union is one of the few lenders that doesn’t charge any closing costs for its loans. You can also get a competitive rate on a fixed or variable-rate HELOC. Fixed-rate HELOCs start at 6.99% APR, while variable-rate HELOCs are as low as 7.50% APR. However, the lender limits you to a $500,000 line of credit. Furthermore, you need a 670 FICO score to get approved. Some mortgage lenders are more flexible and only require that you have a 620 credit score to receive financing. What is a HELOC?A home equity line of credit (HELOC) is a financial product that lets homeowners borrow against their home equity. Due to its revolving nature, it’s a little different from a home equity loan. Michael Elefante, a short-term rental expert with a seven-figure portfolio and the founder of the BNB Investor Academy, explains how HELOCs work and what distinguishes them from home equity loans.“A Home Equity Line of Credit (HELOC) is a revolving credit facility that provides you with a line of credit up to a borrowing limit, typically with a variable interest rate. Home equity loans give you a lump sum right away with a fixed interest rate and a repayment time frame. This is an important differentiator because a home equity loan offers predictable monthly payments, while a HELOC gives you the option to borrow funds over time. A HELOC can work well if you need to cover intermittent expenses.”HELOC lenders tend to have five- to 10-year draw periods for their credit lines. During the draw period, you only have to pay interest. Of course, you can make larger payments to get out of debt sooner. However, it offers plenty of flexibility. If you pay off your HELOC before the draw period concludes, you can always borrow against it in the future if you need to cover a new expense.Why Use a HELOC for Debt ConsolidationA HELOC for debt consolidation can strengthen your finances and free up more capital. Elefante outlines some of the ways HELOCs can help.“There are substantial advantages to using a HELOC to consolidate debt, including greater liquidity, lower interest rates (compared to unsecured loans or credit cards), and only paying interest on the unused portion. Borrowing against existing debt to manage and amortize it provides not just a hat trick for debt management but also an opportunity for refocusing freed-up capital on strategic investments.”Alternatives to HELOCsAlthough using a HELOC to pay off credit card debt and other obligations has benefits, you can use other financial products to consolidate your debt. These are some of the other options to consider.Home Equity LoansThese financial products let you borrow against home equity at competitive rates and terms. You can get a home equity loan for up to 30 years and have fixed monthly payments. Home equity loans are more predictable since monthly payments stay the same. However, HELOCs let you start with interest-only payments, and you can draw against the credit line again if you have already repaid it.Home Equity AgreementsHome equity agreements (HEAs) allow you to give a stake in your home equity in exchange for capital. You don’t have to contend with monthly loan payments, but the HEA provider’s stake will gain value as your property’s value increases. Home equity agreements have terms that typically range from five to 30 years. When the term concludes, they turn into balloon payments, but you can buy out an HEA provider early.Personal LoansPersonal loans have higher APRs than home equity loans and HELOCs. The higher rates come with speed since you can get personal loans much faster. Some lenders offer financing within 24-48 hours, while you will likely have to wait two to six weeks to get approved for a HELOC or a home equity loan. Personal loans are also accessible to people who do not own homes, and some of them have flexible credit score requirements.Why You Should Trust UsBenzinga has provided financial insights for over 15 years, and I have been on the team for almost five years. Along the way, I have written for other publications like U.S. News & World Report, Business Insider and Newsweek. Benzinga regularly reaches out to expert sources for articles, including the real estate expert with a seven-figure portfolio who shared his insights for this article.Methodology We assessed HELOC lenders based on their APRs, terms, fees and other details. We also checked online reviews to gauge past customers' feelings about each lender. You can see our full methodology here.FAQQIs a HELOC good for debt consolidation?