Key findings
- Lenders denied 32.9% of HELOC applications in 2025: 496,355 of 1,508,743 decisions.
- Debt-to-income was the first reason listed on 44% of denials, and one of the reasons on 50%. Credit history came next (25% first).
- With debt-to-income over 60%, 93% of applications were denied, compared with 17% between 20% and 42%.
- When total borrowing reached 90% or more of the home's value, 76% were denied, compared with 28% below 80%.
- Denial rates ran from 18% in Iowa to 48% in Texas.
- Home equity loans were denied at a similar 31%, but 20% of those denials listed an incomplete application first, compared with 9% for HELOCs.
Why lenders said no
First reason listed on each denied HELOC application, 2025. Share of 496,278 denials with a reason reported.
| Reason | Listed first | Listed at all | Home equity loans, first |
|---|---|---|---|
| Debt-to-income ratio | 44.2% | 49.8% | 30.4% |
| Credit history | 24.8% | 31.7% | 22.5% |
| Collateral | 12.3% | 20.5% | 13.8% |
| Incomplete application | 8.9% | 9.6% | 19.7% |
| Other | 7.3% | 12.7% | 9.2% |
| Unverifiable information | 2.0% | 4.0% | 3.3% |
| Employment history | 0.4% | 1.3% | 0.7% |
| Insufficient cash | 0.1% | 0.5% | 0.4% |
| Mortgage insurance denied | 0.0% | 0.0% | 0.0% |
Lenders can list up to four reasons, so "listed at all" adds to more than 100%.
Denial rate by debt-to-income ratio
Share of HELOC applications denied, by the applicant's debt-to-income ratio, 2025.
The under-20% group is denied more often than the 20% to 42% groups; HMDA doesn't say why. One possibility is applicants reporting little income.
Denial rate by loan-to-value
Share of HELOC applications denied, by combined loan-to-value (all debt on the home, including the new line, as a share of its value), 2025.
What this means if you were denied
Denied over debt-to-income? That's the most common reason by far. A home equity investment has no monthly payment to qualify for, which is why homeowners in this spot often look at one. See whether an HEI could still work for you on HEI Offers.
Denied over collateral? An HEI probably won't solve it: providers limit total borrowing against your home too.
Denied over an incomplete application? Finish it and reapply. A HELOC usually costs less than an HEI (see HEI vs HELOC), and see every other option in HELOC alternatives.
HELOC denial rates by state
2025, highest to lowest. National rate: 32.9%.
| State | Decisions | Denied | Most common first reason |
|---|---|---|---|
| Texas | 41,451 | 47.8% | Debt-to-income ratio |
| Hawaii | 7,083 | 44.2% | Debt-to-income ratio |
| District of Columbia | 2,115 | 43.0% | Debt-to-income ratio |
| Nevada | 13,038 | 40.8% | Debt-to-income ratio |
| Florida | 106,982 | 40.5% | Debt-to-income ratio |
| Maryland | 35,548 | 39.2% | Debt-to-income ratio |
| Georgia | 47,433 | 38.9% | Debt-to-income ratio |
| New York | 68,769 | 38.2% | Debt-to-income ratio |
| West Virginia | 3,907 | 37.0% | Credit history |
| Louisiana | 6,931 | 36.2% | Debt-to-income ratio |
| Alaska | 1,518 | 36.1% | Debt-to-income ratio |
| Mississippi | 8,081 | 35.2% | Credit history |
| South Carolina | 20,663 | 35.0% | Debt-to-income ratio |
| Illinois | 49,565 | 34.8% | Debt-to-income ratio |
| Delaware | 5,974 | 34.4% | Debt-to-income ratio |
| New Jersey | 52,868 | 34.4% | Debt-to-income ratio |
| North Carolina | 68,716 | 34.2% | Debt-to-income ratio |
| California | 158,600 | 34.0% | Debt-to-income ratio |
| Rhode Island | 10,099 | 33.9% | Debt-to-income ratio |
| New Mexico | 4,364 | 32.7% | Debt-to-income ratio |
| Massachusetts | 41,545 | 32.2% | Debt-to-income ratio |
| Arkansas | 9,240 | 32.1% | Debt-to-income ratio |
| Washington | 48,211 | 32.1% | Debt-to-income ratio |
| Connecticut | 18,624 | 31.7% | Debt-to-income ratio |
| Tennessee | 33,018 | 31.5% | Debt-to-income ratio |
| Virginia | 45,864 | 31.2% | Debt-to-income ratio |
| Missouri | 22,225 | 31.1% | Debt-to-income ratio |
| Arizona | 43,372 | 30.7% | Debt-to-income ratio |
| Colorado | 42,021 | 30.4% | Debt-to-income ratio |
| Ohio | 76,137 | 30.4% | Debt-to-income ratio |
| Oklahoma | 9,046 | 30.3% | Debt-to-income ratio |
| Alabama | 20,396 | 29.9% | Credit history |
| Pennsylvania | 72,646 | 29.9% | Debt-to-income ratio |
| Wyoming | 1,924 | 29.5% | Debt-to-income ratio |
| New Hampshire | 10,224 | 28.5% | Debt-to-income ratio |
| Michigan | 53,340 | 28.3% | Debt-to-income ratio |
| Idaho | 14,580 | 28.2% | Debt-to-income ratio |
| Kansas | 9,836 | 28.1% | Debt-to-income ratio |
| Utah | 28,419 | 28.0% | Debt-to-income ratio |
| Kentucky | 21,430 | 27.9% | Debt-to-income ratio |
| Montana | 3,863 | 27.9% | Debt-to-income ratio |
| Oregon | 25,991 | 27.4% | Debt-to-income ratio |
| Minnesota | 23,120 | 27.3% | Debt-to-income ratio |
| Maine | 7,229 | 26.8% | Debt-to-income ratio |
| Indiana | 40,398 | 26.6% | Credit history |
| South Dakota | 1,924 | 26.1% | Debt-to-income ratio |
| Nebraska | 6,730 | 24.4% | Debt-to-income ratio |
| Vermont | 3,014 | 24.4% | Debt-to-income ratio |
| Wisconsin | 45,382 | 21.1% | Debt-to-income ratio |
| North Dakota | 1,815 | 20.3% | Debt-to-income ratio |
| Iowa | 13,474 | 18.3% | Debt-to-income ratio |
Methodology
Source. Loan-level 2025 data reported under the Home Mortgage Disclosure Act (HMDA), downloaded from the FFIEC HMDA Data Browser, which the CFPB publishes.
What counts. Subordinate-lien open-end lines of credit (HELOCs), excluding reverse mortgages and business-purpose loans, with a credit decision (originated, approved but not accepted, or denied). Denial rate = denied / decided. Home equity loans are second-lien closed-end loans, filtered the same way.
Limits.
- HMDA covers lenders above its reporting thresholds; lenders with fewer than 200 open-end lines in each of the two prior years do not report them, so small-lender HELOCs are missing.
- Some smaller banks and credit unions are partially exempt and do not report denial reasons; reason shares are among denials with a reason reported.
- Lenders report up to four reasons per denial. 'Primary reason' is the first one listed.
Reproduce it. Our tally script and its output are published below.
Data and citation
Download JSONDownload state CSV
Free to use with attribution (CC BY 4.0).
HEI Facts. "Why HELOCs Get Denied: 2025 HMDA Data." September 2026. https://heifacts.com/heloc-denials
Journalists and researchers: questions or a custom cut of the data, hello@heifacts.com.
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