Top HELOC Lender with a Rewards Credit Card
Fifth Third Bank
Fifth Third Bank offers an appealing option for those seeking a home equity line of credit (HELOC) alongside a rewards credit card. Their Equity Flexline Mastercard enables users to earn rewards and a bonus after the first qualifying purchase. This structure incentivizes spending while accessing HELOC funds.
Key Features:
- Access to Funds: Flexible options to utilize HELOC via checks, online transfers, in-person withdrawals, or ATMs.
- No Closing Costs: This benefit makes it attractive for borrowers not wanting added upfront expenses.
Considerations:
- Application Process: Interested individuals can apply through online platforms, phone, or in-branch visits.
- Location Availability: Fifth Third Bank provides HELOCs in select states, including Florida and Ohio.
- Customer Support Hours: Assistance is available during weekdays from 8 a.m. to 6 p.m. ET and Saturdays from 10 a.m. to 4 p.m. ET.
Top HELOC Lender for Large Credit Limits
Flagstar Bank
Flagstar Bank stands out for offering high home equity lines of credit (HELOCs). Their borrowing limits span from $10,000 to $1 million, significantly surpassing the maximum amounts provided by many other lenders. Borrowers may choose a 10-year draw period followed by a 20-year repayment term.
Advantages and Disadvantages
Advantages
- No closing costs if the account remains active for 36 months.
- Multiple options to access HELOC funds.
- Generous maximum loan limit for eligible applicants.
Disadvantages
- Interest rates may reach up to 21%.
- The closing process can take longer than with other lenders.
Availability
Flagstar Bank’s HELOCs are accessible throughout the United States, excluding Texas.
Application Process
Interested borrowers can apply for a HELOC online. Customer service assistance is available by phone from 7:30 a.m. to 8 p.m. ET (Monday to Friday) and 7:30 a.m. to 4 p.m. ET (Saturday).
Top HELOC Lender for Nationwide Access
Bank of America
Bank of America stands out in the HELOC market, providing access up to $1 million in many areas. While the bank does not disclose its minimum credit score requirement, it remains a popular choice due to its extensive branch network and varied offerings.
Key Features:
- Wide Accessibility: Operating approximately 3,900 branches across the United States, it caters to a large demographic.
- Introductory Rates: Initially, borrowers can benefit from a lower APR for the first six months, switching to a variable rate later.
- No Hidden Fees: There are no application or closing costs for credit lines less than $1 million, along with the absence of annual fees.
- Flexible Options: Customers may choose fixed-rate HELOCs, appealing to those looking for payment stability.
Considerations:
- A minimum line of credit of $25,000 is required for online applications.
- Borrowers must finalize their loan in person, though this can occur at a location other than a branch.
Application Process: Prospective borrowers can begin their application online, by phone, or at a branch. Although closing involves meeting with a bank representative, this can be done in a convenient setting. Customer service is available on weekdays and Saturdays, ensuring support is easily accessible.
Top HELOC Lender for Customer Savings
Citizens Bank
Citizens Bank stands out for its customer discounts on Home Equity Lines of Credit (HELOCs). Borrowers who set up payments through a linked Citizens checking account benefit from a 0.25% reduction in their interest rate. Additionally, there are no closing costs, setup fees, or application fees, making it a cost-effective choice.
Advantages and Disadvantages
- Fast Closing: The Citizens FastLine HELOC can be closed within seven days.
- Autopay Discount: Utilizing a Citizens checking account qualifies for an autopay discount.
- Annual Fee: A $50 fee is charged annually after the first year.
- HELOC Limit: The maximum HELOC amount is less competitive compared to other lenders.
Availability
Citizens Bank offers HELOCs across a range of states, including Alabama, Florida, Indiana, and Virginia, among others.
Application Process
Borrowers can easily apply online, via phone, or in person at a branch. Customer service is available 24/7 for support.
Top HELOC Provider for Quick Application Process
Truist
Truist stands out for its efficient home equity line of credit (HELOC) application procedure, often completing the process up to two weeks faster than its competitors. The typical timeline for underwriting is around 30 to 35 days, whereas other lenders may take up to six weeks.
Benefits:
- Online Convenience: Most steps of the application can be completed online.
- Quick Application: Applicants can finish their online forms in under 15 minutes.
- Timely Closing: The process from application to closing usually takes between 30 and 35 days.
- No Closing Costs: Truist waives closing fees for borrowers who retain their HELOC for at least three years.
Considerations:
- Annual Fee: There is a $50 annual fee in certain states.
- Variable Rates: Maximum APRs may be higher for properties outside North Carolina.
Coverage Areas:
Truist provides HELOCs in the following states: Alabama, Arkansas, California, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, North Carolina, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Washington, D.C.
Application Process:
Borrowers can apply easily online. Customer support is available by phone from Monday to Friday, 8 a.m. to 8 p.m. ET, and Saturday, 8 a.m. to 5 p.m. ET at 1-877-882-1185.
Best HELOC Lender for No Closing Costs
Alliant Credit Union
Alliant Credit Union stands out due to its zero closing costs on HELOCs for amounts up to $250,000. This feature eliminates appraisal fees, making it an attractive option for borrowers looking to tap into their home equity. Membership is required before initiating the application, which applies to non-members.
Pros:
- Competitive interest rates
- Access up to 80% of home equity
- No closing costs on HELOCs up to $250,000
Cons:
- Limited availability in some states
Availability
Alliant offers its services in the following states:
- Arizona
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Nevada
- New Jersey
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Utah
- Virginia
- Washington
- Wisconsin
- Washington, D.C.
Application Process
Borrowers can conveniently apply online and receive 24/7 customer support, with recommended hours from 7 a.m. to 7 p.m. CT, Monday through Friday.
Top Lender for Fixed-Rate HELOCs
BMO U.S.
BMO U.S. stands out for offering competitive fixed-rate Home Equity Lines of Credit (HELOCs) with a starting annual percentage rate (APR) that is lower than many of its competitors. Borrowers can convert small balances, starting from $2,000, into fixed-rate repayment terms. Those who utilize autopay from a linked BMO bank account enjoy a 0.50% discount on their new HELOC rates.
Advantages:
- Fast closing times in certain instances
- Lower starting APR compared to other lenders
Disadvantages:
- Annual fee of $75
Availability: BMO provides HELOCs in all states with the exception of New York and Texas.
Application Process: Applications can be made online, by phone, or at a local branch. Digital closing with an online notary is also an option. Customer service is accessible Monday through Friday from 8 a.m. to 8 p.m. CT, and Saturday from 8 a.m. to 6 p.m. CT.
Top HELOC Lender for Quick Closings
PenFed Credit Union
PenFed Credit Union is recognized for its efficient closing process. The HELOC Express program allows qualifying applicants to finalize their loans in as few as 15 days, making it one of the most streamlined options available. Borrowers need to provide verification of income, credit, and property documents within three business days to meet this timeline.
Benefits:
- Eligible borrowers can close in just 15 days.
- PenFed covers several closing costs for HELOCs.
- Initial application can be initiated online, but completion requires a phone call.
Considerations:
- The combined loan-to-value (CLTV) ratio is limited to 80% for Texas residents, in contrast to 85% for those in other states.
- Customer service is available via phone weekdays and Saturday for assistance.
With availability across all 50 states and Washington, D.C., PenFed offers a robust option for borrowers seeking fast and efficient home equity lines of credit.
Top HELOC Provider with No Minimum Withdrawal
TD Bank
TD Bank’s Home Equity Line of Credit (HELOC) is notable for its absence of a minimum draw amount, allowing flexibility for borrowers. With a minimum credit line set at $25,000, customers can access substantial funds. They can borrow against almost 90% of their home’s equity.
Advantages:
- Discounted rates for existing TD Bank customers
- No minimum withdrawal necessary
- Access to nearly 90% of home equity
Disadvantages:
- Lengthy closing timelines
- Limited availability across states
Available Locations:
TD Bank provides HELOCs in the following states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.
Application Process:
Borrowers can conveniently apply online. Customer support operates Monday to Friday from 8 a.m. to 8 p.m. ET, Saturday from 8:30 a.m. to 5:30 p.m. ET, and Sunday from 11 a.m. to 2 p.m. ET.
Best Home Equity Line of Credit Lender for a Low Intro Rate
Connexus Credit Union
Connexus Credit Union is recognized for offering a compelling introductory fixed rate for the initial six months on both standard and interest-only HELOC options. After this introductory phase, the interest rate transitions to a variable rate, adjusting every six months.
Advantages and Disadvantages
- Pros:
- Fully online processing for HELOC applications
- No requirement for an appraisal for eligible applicants
- Cons:
- Closing costs may vary from $175 to $2,000
- HELOCs are unavailable in some states, including Alaska, Hawaii, Maryland, and Texas
Application Process
Interested borrowers can apply through the Connexus website, by phone, or at a physical branch. Customer service is available during specific hours throughout the week for assistance.
Approach to Evaluation
An evaluation was conducted involving over 50 mortgage lenders operating both online and in-person across the U.S. This selection included prominent HELOC providers such as banks, credit unions, and online lenders. Lenders that failed to provide transparent information regarding interest rates and qualification criteria were excluded from consideration. A minimum rating of 3.5 stars was required for inclusion.
Forbes Advisor employs a scoring system that assesses lenders based on several critical criteria. The evaluation considers cost, minimum qualifications (like credit score thresholds), and closing timeframes for HELOCs. Each factor is weighted equally, contributing 20% to the overall score. The factors assessed include:
- Interest Rate: 20%
- Minimum Credit Score Requirements: 20%
- Closing Timelines: 20%
- Accessibility: 20% (evaluated through the availability of online access and national presence)
- Lender Fees: 20%
- Bonus Points: An additional 5 points awarded to lenders that also provide Home Equity Loans (HELs), promoting a broader range of equity loan options.
This systematic approach allows for an informed comparison of lender offerings in the market.
