Rocket Mortgage does not offer HELOCs directly, but it does offer home equity loans

Rocket Mortgage, the online lending platform owned by Quicken Loans, stopped offering home equity lines of credit several years ago. If you are looking to borrow against your home's equity through Rocket Mortgage, your only option is a home equity loan — a lump-sum loan with a fixed interest rate and a set repayment schedule, rather than a line of credit you draw from as needed.

The difference matters. A HELOC works like a credit card: you receive access to a credit line, pay interest only on what you use, and can draw and repay multiple times during the draw period. A home equity loan gives you one payment upfront and you repay it in fixed monthly installments. Rocket Mortgage's home equity loans range from $25,000 to $500,000, depending on your home's equity and creditworthiness.

If a HELOC is what you actually need — because you want flexibility to borrow over time or only pay interest on what you use — you will need to look elsewhere. Other lenders still offer HELOCs, though the market has shrunk since the 2008 financial crisis.

Key Takeaways

  • Rocket Mortgage offers home equity loans but not HELOCs; the two products work differently and suit different borrowing situations.
  • A Rocket Mortgage home equity loan gives you a single lump sum with a fixed rate and fixed monthly payments, typically ranging from $25,000 to $500,000.
  • If you need a line of credit you can draw from over time, you will need to compare HELOCs from other lenders such as banks, credit unions, or online lenders that still offer them.
  • Rocket Mortgage home equity loans require you to have built up equity in your home and typically require a credit score of 620 or higher.

How Rocket Mortgage home equity loans work

When you take out a home equity loan through Rocket Mortgage, you receive the full loan amount as a single deposit, usually within 7 to 10 business days of closing. You then repay it over a fixed term — typically 5, 10, 15, or 20 years — with the same payment every month. The interest rate is fixed, meaning it does not change over the life of the loan.

Your monthly payment covers both principal and interest. Rocket Mortgage calculates this payment upfront based on the loan amount, interest rate, and term you choose. Because the rate is fixed, you know exactly what you will owe each month, which makes budgeting predictable.

The loan is secured by your home, meaning your house serves as collateral. If you fail to repay, the lender can foreclose. This is why home equity loans typically carry lower interest rates than unsecured personal loans — the lender's risk is lower.

When a home equity loan makes sense instead of a HELOC

A home equity loan from Rocket Mortgage works best if you know exactly how much money you need and you want to borrow it all at once. Common reasons include paying off high-interest debt, funding a major home renovation, or covering a large medical or education expense.

Because you receive the money upfront, you start paying interest when ready on the full amount, even if you do not spend it right away. This is different from a HELOC, where you only pay interest on what you actually draw. If you are unsure how much you will need or expect to borrow in stages over time, a HELOC would typically be cheaper — but Rocket Mortgage does not offer one.

A fixed-rate home equity loan also protects you from rate increases. If interest rates rise, your payment stays the same. With a HELOC, the interest rate is usually variable, meaning your payment can go up if rates rise.

Requirements to get a Rocket Mortgage home equity loan

Rocket Mortgage requires you to have built up meaningful equity in your home — typically at least 15% to 20% of the home's current value. If your home is worth $300,000 and you owe $200,000 on your mortgage, you have $100,000 in equity; Rocket Mortgage would likely lend you a portion of that.

You will also need a credit score of at least 620, though a higher score (680 or above) typically qualifies you for better interest rates. Rocket Mortgage will review your income, employment history, and debt-to-income ratio to confirm you can afford the new loan on top of your existing mortgage.

You must own the home outright or have a mortgage on it; you cannot use a home equity loan on a property you are renting or do not own. The home must be your primary residence, a second home, or an investment property, though rates and terms vary by property type.

Where to find HELOCs if Rocket Mortgage is not the right fit

If you need a HELOC instead of a home equity loan, several types of lenders still offer them. Traditional banks such as Bank of America, Wells Fargo, and Chase offer HELOCs, though many have tightened their requirements since the 2008 crisis. Credit unions often have more flexible terms and lower rates for members. Online lenders and fintech companies have also entered the HELOC market in recent years.

When comparing HELOCs from different lenders, pay attention to the draw period (how long you can borrow) and the repayment period (how long you have to pay it back). Most HELOCs have a 10-year draw period and a 20-year repayment period, but these vary. Also check whether the interest rate is variable or fixed, and what the margin and index are — these determine how your rate will move if the lender's base rate changes.

Getting quotes from multiple lenders takes time but can save you thousands in interest. Many lenders let you pre-may have access to online without a hard credit inquiry, so you can compare rates before committing to an process.

Comparing Rocket Mortgage home equity loans to other lenders' products

Rocket Mortgage home equity loans are competitive on rate and speed if you want a fixed-rate lump-sum loan. The company's online process is streamlined, and closing typically happens within 7 to 10 days. However, Rocket Mortgage's minimum loan amount of $25,000 may be higher than some competitors, and some borrowers report that customer service is harder to reach than at traditional banks.

If you are comparing Rocket Mortgage to other home equity loan lenders, look at the interest rate, closing costs, and how long the lender takes to fund. Closing costs for home equity loans typically range from 2% to 5% of the loan amount, though some lenders advertise no closing costs (which usually means the costs are rolled into the rate instead). Ask each lender for a Loan Estimate, which shows the rate, monthly payment, and all costs side by side.

For HELOCs specifically, Rocket Mortgage is not an option, so you will be comparing banks, credit unions, and online lenders against each other. The comparison is more complex because HELOCs have variable rates and multiple periods, but the same principle applies: get multiple Loan Estimates and compare the total cost over time, not just the starting rate.

Frequently Asked Questions

Can I use a Rocket Mortgage home equity loan to pay off my first mortgage?

Yes. Many borrowers use home equity loans to pay off their primary mortgage early or to consolidate a mortgage with a higher rate. However, you will still owe money on your home — you are straightforward replacing one loan with another. Make sure the interest rate and term on the home equity loan actually save you money compared to your current mortgage before proceeding.

What is the difference between a home equity loan and a cash-out refinance?

Both let you borrow against your home's equity, but they work differently. A cash-out refinance replaces your entire mortgage with a new, larger one and gives you the difference in cash. A home equity loan is a second loan on top of your existing mortgage. Cash-out refinances may have lower rates if rates have dropped since you bought, but they restart your loan term. Home equity loans keep your original mortgage intact.

Does Rocket Mortgage offer a HELOC at all?

No. Rocket Mortgage discontinued its HELOC product and now offers only home equity loans. If you specifically need a line of credit rather than a lump sum, you will need to look at other lenders such as your bank, credit union, or online lenders that still offer HELOCs.

How long does it take to close a Rocket Mortgage home equity loan?

Rocket Mortgage typically closes home equity loans within 7 to 10 business days of approval, which is faster than many traditional lenders. The exact timeline depends on how quickly you provide documentation and how complex your financial situation is. You can track your process status online through Rocket Mortgage's portal.

Can I get a Rocket Mortgage home equity loan if I have bad credit?

Rocket Mortgage requires a minimum credit score of 620, which is on the lower end for mortgage lending. If your score is below 620, you will not may have access to. If your score is between 620 and 680, you may may have access to but will likely pay a higher interest rate. If your score is above 680, you will have access to better rates. Check your credit report for errors before explore.