The Best Credit Unions Offering HELOCs Based on 2024 Rates, Terms, and Features

Credit unions are often a go-to for HELOCs due to their member-focused approach and potentially lower interest rates. Unlike traditional banks or online lenders, credit unions prioritize affordability and personal service, which can result in better terms and lower fees. Credit unions also often provide more flexibility in lending requirements, making them appealing to a broader range of borrowers.

While credit union HELOCs can offer unique benefits, membership requirements and product variety may vary. Below, we’ve compiled the top credit unions offering HELOCs, so you can decide which option is best for you.

The 4 best credit unions offering HELOCs

Credit unions often provide a unique edge when it comes to HELOCs, offering competitive rates, low fees, and personalized service that prioritizes members. After extensive research, we’ve identified four standout options that cater to different borrower needs. From flexibility in loan terms to cost-saving benefits, these credit unions exemplify why many homeowners turn to member-owned institutions for their HELOCs:

• Bethpage Federal Credit Union: Eliminates closing and appraisal fees and allows borrowers to convert variable-rate balances to fixed-rate loans, offering predictability in a fluctuating rate environment.
• LendingTree: While not a credit union, it simplifies comparing HELOC offers from multiple credit unions and lenders, ensuring borrowers find competitive rates and terms tailored to their needs.
• PenFed Credit Union: Offers high credit limits up to $1 million, ideal for borrowers with significant equity, and provides the flexibility to switch between variable and fixed rates.
• Alliant Credit Union: Focuses on affordability with no closing costs or appraisal fees for lines up to $250,000, making it a cost-effective option for many homeowners.

Here’s a closer look at each of our top picks and what makes them stand out.

Bethpage Federal Credit Union

Best Credit Union

4.7 _/5

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Why it’s one of the best

Bethpage Federal Credit Union is located on Long Island, has 30 New York-area locations, and has more than 30,000 ATMs nationwide through the CO-OP ATM Network. Its services include banking, saving, investing, lending, credit counseling, and insurance.

Bethpage charges no closing costs, application, origination, or appraisal fees on its HELOCs. Unlike many HELOCs, which have variable interest rates, Bethpage offers fixed-rate loan options at the time of funding.

• Lock some or all of your HELOC to a fixed-rate loan
• Make interest-only payments during your draw period (the first 10 years)
• No closing costs or origination fees

• Fixed-rate loans and loan amounts over $500,000 are not eligible for the introductory rate APR.

HELOC details

Rates (APR)	Fixed 6.99% for 12 months, then as low as 8.50% variable
Loan amounts	$10,000 – $1 million
Repayment terms	Draw: 10 years / Repayment: 20 years
Max. LTV	85%

LendingTree

Best for Comparison Shopping

4.5 _/5

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Why it’s one of the best

LendingTree isn’t a credit union, but it stands out as one of the premier platforms for comparing HELOC offers from multiple lenders. This makes it a valuable resource for homeowners seeking the best rates and terms. The platform’s extensive network includes various credit unions and banks, ensuring you can find competitive options tailored to your financial needs. 

LendingTree’s user-friendly interface simplifies the comparison process, allowing you to evaluate prequalified offers and select the best HELOC. LendingTree provides comprehensive resources and educational tools, further empowering you to make informed decisions.

• Access to a vast array of lenders, including numerous credit unions
• Simple and intuitive platform for easy comparison of HELOC offers
• In-depth guides and tools to help borrowers understand HELOCs and make informed choices

• Interest rates and terms vary by lender; not all lenders available are represented

HELOC details

Rates (APR)	Vary by lender
Loan amounts	$10,000 – $2 million
Repayment terms	Draw: 2 – 20 years / Repayment: 5 – 30 years
Max. LTV	Varies by lender

PenFed Credit Union

3.8 _/5

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Why it’s one of the best

PenFed—Pentagon Federal Credit Union—offers checking, savings, investment, credit card, and loan accounts. The company has locations across the nation and at several military bases worldwide.

PenFed’s HELOC stands out for its high limits ($1 million). It also allows borrowers to switch to a fixed interest rate on some or all of their interest payments.

• Take out a line of credit up to $500,000
• Can take out more than one PenFed equity loan or HELOC simultaneously for up to $1 million
• Switch from a variable to a fixed rate on all or some of your interest payments
• PenFed will pay most of the HELOC closing costs for many borrowers

• Must have a credit score of 700 or above
• Maximum combined LTV limit of 80%
• Must be a member to qualify

HELOC details

Rates (APR)	Starting at 6.99%
Loan amounts	Borrow up to $500,000 (or up to $1 million with two products)
Repayment terms	Draw: 10 years / Repayment: 20 years
Max. LTV	80%

Alliant Credit Union 

3.3 _/5

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Why it’s one of the best

Alliant Credit Union is a national digital bank that offers banking, lending, investing, and insurance services. Its HELOC has variable rates that may adjust monthly based on the prime rate. One benefit is that Alliant does not charge closing costs or appraisal fees on credit lines up to $250,000.

• Borrow up to 90% of the value of your home
• No closing costs or appraisal fees
• Complete the online application in minutes
• Alliant requires an appraisal only for HELOCs greater than $250,000

• Only offers variable rates
• Limited state availability

HELOC details

Rates (APR)	Variable, starting at 8.75%
Loan amounts	Minimum $10,000 in most states; Minimum $25,001 in Washington, D.C., and Wisconsin
Repayment terms	Draw: 10 years / Repayment: 20 years
Max. LTV	85%

States where available

An Alliant HELOC is available in the following states*: Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Pennsylvania, Tennessee, Utah, Virginia, Washington, Wisconsin, and Washington, D.C.

*Availability subject to change.

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Best HELOC Lenders & Rates

How do credit union HELOCs work compared to banks or online lenders?

The process for obtaining a HELOC from a credit union is nearly identical to the process with banks or online lenders. Like other lenders, credit unions determine your borrowing limit based on your loan-to-value ratio (LTV), which compares the amount you owe on your home to its current market value. Typically, credit unions allow you to borrow up to 85% to 95% of your home’s value, minus your existing mortgage balance.

For example, with a home valued at $500,000 and a mortgage balance of $300,000, a 95% LTV would allow you to borrow up to $175,000:

• Home value: $500,000
• Current mortgage balance: $300,000
• Maximum HELOC amount: $500,000 x 0.95 – $300,000 = $175,000

Credit unions also assess factors like your credit score, payment history, and overall financial risk when setting your loan amount and interest rate.

The primary differences often lie in how appraisals are handled. While traditional banks or credit unions may require a full in-person appraisal to determine your home’s value, some online lenders or digitally focused credit unions might offer virtual or automated appraisals for faster approval. Additionally, credit unions are more likely to waive appraisal fees or closing costs, which can reduce upfront expenses.

Ultimately, the mechanics of a credit union HELOC are similar to those offered by banks or online lenders, but credit unions often provide a more personalized experience, lower fees, and greater flexibility in lending criteria.

Tip

Rates and qualifying standards can vary by institution, so if you’re considering a credit union HELOC, compare options before moving forward. This will ensure you get the best deal for your needs.

Is it better to get a HELOC through a credit union or a bank?

When deciding between a credit union or a bank for your HELOC, it’s best to know the benefits and drawbacks of each option. Credit unions are member-owned and may offer lower interest rates than traditional banks. However, credit unions might have fewer unique products or branches than bigger banks.

Big banks often have more branches and updated technology. A larger bank might offer more options and greater convenience, but its lending standards could be stricter than those of a credit union.

Choosing between the two depends on your specific HELOC needs, the amount you want to borrow, and whether you have a relationship with a bank. It’s wise to prequalify with a bank and a credit union to see which offers you the best terms.

How do credit union HELOC rates differ from bank HELOC rates?

Yes, you might qualify for lower HELOC rates when borrowing from a credit union than a bank. Because credit unions are member-owned, the focus is on benefitting the members rather than increasing bank profit. 

Of course, your HELOC rate depends on many factors, including your creditworthiness, income, the amount you want to borrow, and the value of your home.

How do the best HELOCs from credit unions compare to online lenders?

When comparing credit unions to online lenders like Figure, AvenCash, and Spring EQ, the primary differences come down to speed, convenience, and unique product features. Credit unions are often praised for their lower fees and personalized service, making them ideal for borrowers who value affordability and a relationship-focused experience. However, they may have stricter membership requirements and longer processing times compared to online lenders.

Online lenders, on the other hand, prioritize efficiency and streamlined processes. Figure and AvenCash, for example, offer fixed-rate HELOCs that function more like home equity loans since they require full withdrawal at origination, providing predictable payments. Spring EQ stands out with a higher loan-to-value (LTV) ratio of up to 90%, catering to borrowers looking to access more equity than credit unions typically allow.

Ultimately, credit unions are a strong choice if you prioritize lower costs and personalized support, while online lenders excel at delivering fast funding and innovative products tailored to specific financial needs. Your decision will depend on whether you value the member-focused approach of a credit union or the speed and flexibility of online options.

Can you get a HELOC from any credit union?

Not every credit union offers HELOCs, but credit unions that provide mortgages and home equity loans often offer home equity lines of credit. 

In most cases, you must become a credit union member before taking out a HELOC with that institution. This often involves a nominal fee or opening a checking or savings account with a small minimum balance.

Why do some credit unions only offer variable interest rates on a HELOC?

Most HELOCs have a variable interest rate, which means it changes based on the benchmark rate it’s tied to (usually the prime rate published by The Wall Street Journal). When your rate changes, so does your payment, which can challenge budgeting.

If you get a HELOC with a variable rate, it’s essential to understand the fine print of your loan—including how high your rate can get throughout your loan term. A healthy emergency fund of at least three months of living expenses is wise. You’ll want to ensure you always have the cash for your payment, even if it rises.

Certain credit unions offer fixed-rate HELOC options or will let you convert some or all of your balance into a fixed-rate loan later. With these, you’ll enjoy peace of mind with a consistent interest rate and payment for the remainder of your term.

If you’re interested in a fixed-rate HELOC, shop around and compare lenders; not all credit unions offer this option. Check out our list of the best fixed-rate HELOCs.

FAQ

Are there disadvantages to credit union HELOCs?

Credit unions often provide competitive rates and personalized service, but it’s smart to consider the drawbacks too. Membership requirements can be strict, sometimes limiting your eligibility based on your location, occupation, or membership in certain organizations. 

Credit unions might offer fewer product options than larger banks, and their technology, such as online and mobile banking, may not be as advanced. Processing times for HELOC applications could be longer, which is inconvenient if you need quick access to funds.

How much will a HELOC cost me?

The cost of a HELOC can vary depending on several factors. Common expenses include application fees, appraisal fees, and annual fees. You might also encounter closing costs ranging from 2% to 5% of the total loan amount. 

The interest rate on most HELOCs is variable, meaning it can fluctuate over time and affect your monthly payments. It’s important to review the specific terms and fees associated with your loan offer to get a clear picture of what a HELOC will cost you.

Does a HELOC damage my credit score?

A HELOC can affect your credit score in several ways. When you apply, the lender performs a hard inquiry on your credit report, which can lower your score by a few points. 

Taking on new debt increases your overall credit utilization, which might damage your credit score if it gets too high. But managing your HELOC responsibly by making on-time payments and controlling your debt can contribute to a healthier credit score over time.

How we selected the best credit union HELOCs and rates

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best HELOCs from credit unions