Are lenders tightening HELOC rules in 2026? Here's what experts say

MoneyWatch: Managing Your Money Are lenders tightening HELOC rules in 2026? Here's what experts say We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aly J Yale Aly J Yale Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more. Read Full Bio Aly J Yale April 6, 2026 / 11:14 AM EDT / CBS News Add CBS News on Google Market conditions and the economy play a role in what HELOC lenders offer and who they'll approve.  J Studios/Getty Images Thanks to shifting economic conditions, including the late-2025 rate cuts by the Federal Reserve, rates on home equity lines of credit (HELOCs) have been declining recently. At the same time, borrower interest in HELOCs has increased. Case in point? HELOC originations jumped almost 16% between the third quarter of 2024 and the third quarter of 2025, according to data from TransUnion. While that growing demand is great for lenders, they also have a lot to think about in terms of risk these days. Household debt is climbing, home prices are falling in many markets, and overall economic and geopolitical uncertainty looms. Do these conditions make it riskier to borrow from your equity right now, though? And will lenders set stricter requirements to lessen that risk? Here's what experts say.Find out how affordable your home equity borrowing options are now.Why lenders could be tightening HELOC requirements in 2026There's a chance lenders could tighten HELOC requirements this year, experts say. One potential driver behind that is that home prices are falling in many markets. Those drops don't appear to be too drastic just yet, but they are falling nonetheless. Listing prices are also down 2.2% from March 2025 to March 2026, ac...