Best HELOCs for Veterans

Home equity lines of credit (HELOCs) let you borrow against the equity you have built in your home by extending an ongoing line of credit, similar to how you might use a credit card. However, the rate is often lower since your home equity backs it. You can use a HELOC for many purposes, such as making home improvements or consolidating debt.

The Department of Veterans Affairs (VA) doesn’t offer HELOCs, but you still have options if you’re a veteran. Several private lenders understand your unique needs and can help you access your financing. We’ve identified the best lenders for veterans and broken down how these lenders are different.

Best HELOCs for veterans

Veterans may find more flexible equity and loan-to-value (LTV) requirements with some lenders, which could result in higher borrowing limits. The three lenders below are available to current and former members of the military and their families.

HELOCs that cater to military members

Navy Federal Credit Union

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High maximum LTV

• Borrow up to 95% of your home equity
• Gives you access to your funds with the Home Equity Line Platinum Credit Card
• Loan amounts of $10,000 – $500,000

Navy Federal Credit Union is a financial institution serving the military and their family members. To become a member, you or your family member must have ties to the armed forces, DoD, or National Guard. We like that the company has competitive rates for its lending products and lets you leverage almost all your home equity.

Navy Federal keeps the fees low, as it charges no application, origination, annual or inactivity fees. It also has an interest-only option, which charges interest only on what you spend. The draw period on its HELOCs lasts 20 years, followed by a 20-year repayment period.

Funding times aren’t as fast as other options on this list, with an average processing time of 45 to 55 calendar days. However, this lender’s convenience and unique loan options make it worth considering.

Armed Forces Bank

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Low intro rate

• Offers low fixed introductory and regular rates for HELOCs
• Low or no closing costs
• Borrow up to 85% of your home’s value

Armed Forces Bank offers active duty and retired military banking and financial services. However, membership is also open to civilians. This bank is our top pick for low introductory APR. Like many lenders available to veterans, it lets you borrow a higher percentage of your home’s value than other banks.

Armed Forces Bank offers HELOCs of up to $200,000 with loan-to-value ratios of up to 85%. It also offers lines of credit of up to $250,000 with LTVs of up to 80%. While these limits are relatively low, it also lets you borrow up to 70% of your home’s value on loans over $250,000 with no specific limit on the loan amount.

The draw period for this HELOC is 10 years. While these loans are available in most states, the lender notes they are unavailable in Texas.

PenFed Credit Union

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No restrictions on how you use funds

• Expedited closing in as little as 15 days
• No origination fees
• Loans from $25,000 – $500,000

PenFed is our top pick for fast funding. It allows you to access your money much sooner than other lenders. We also like the fact that the lender doesn’t require you to use your money for a specific purpose. It mentions using them for purposes like home improvement, Debt consolidation and student loan payoff.

We also like that PenFed lets you keep your current mortgage rate for its HELOC. If you are locked into a lower rate than those available today, it could save you a lot of money. The lender also notes that your interest may be deductible.

The draw period on these loans lasts for 10 years, followed by a 20-year repayment period. During the draw period, PenFed lets you make interest-only payments. You can switch from variable to fixed rates on some or all of your interest payments.

Traditional HELOC lenders for veterans

Figure

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Best Overall HELOC

LendEDU rating: 4.9/5

• Apply online with approval in 5 minutes and funding in as little as 5 days
• Lines of credit up to $400,000
• Potential for low fixed interest rates depending on creditworthiness

Figure is our top choice for veterans seeking HELOCs due to its exceptional balance of efficiency, accessibility, and customer satisfaction. 

We like the lender’s streamlined online application process and rapid funding capabilities, which are beneficial for veterans who often appreciate straightforward, efficient financial services without unnecessary delays.

Figure supports its clients with flexible options that cater to a wide range of financial needs and circumstances. Its ability to offer significant lines of credit with competitive rates makes it an excellent choice for veterans planning large projects or needing substantial financial resources. 

Figure requires borrowers to withdraw 100% of the credit line (minus fees), with the ability to redraw as they pay down the balance—so it won’t be a fit for you if you don’t plan to use most or all of your HELOC immediately.

Aven

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Best HELOC Customer Reviews

LendEDU rating: 4.8/5

• Offers lowest rate guarantee
• Optional debt protection program through Securian
• Borrow up to $400,000
• Excellent customer reviews from more than 3,800 customers

Aven stands out with its fully digital application and approval process, making it one of the most convenient options for veterans seeking a HELOC. You can get approved in as little as 15 minutes, and funds are available in as few as three days. Aven offers fixed interest rates from start to finish, ensuring predictable payments throughout the loan term.

Similar to Figure, Aven requires a full draw of the credit line at closing, and availability is more limited. As of September 2024, Aven’s HELOC is not available in Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Maryland, Massachusetts, Missouri, Montana, Nevada, New York, Rhode Island, South Carolina, Texas, Vermont, Washington, or West Virginia.

Bethpage FCU

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Best for Large HELOCs

LendEDU rating: 4.7/5

• Competitive rates and terms exclusively for members, including veterans
• Borrow $10,000 to $1 million
• No application, origination, or appraisal fees

Bethpage is the go-to for veterans who prefer working with a community-oriented institution that values personal relationships and localized service. 

As a credit union, Bethpage offers more than just financial products; it provides a community-focused approach that often results in better rates and more personalized service. This aspect is beneficial for veterans who appreciate a more tailored banking experience.

Bethpage requires an initial draw of $25,000 from the credit line to qualify for its low introductory rate. The competitive rates and favorable terms are part of the credit union’s commitment to serving its members’ best interests, including those of veterans. 

By choosing Bethpage, veterans can enjoy the benefits of being part of an institution that prioritizes their financial well-being and supports their unique needs. 

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Best HELOCs

How do standard HELOCs compare to veteran-specific HELOCs?

HELOCs for veterans may come with lower credit score requirements, alternate income verification methods, and potentially lower interest rates compared to standard HELOCs. Veteran-specific lenders may also offer unique features such as interest-only payment options or reduced fees, making them more flexible and accessible.

However, traditional lenders can still provide competitive rates and terms, especially if you meet their standard eligibility criteria.

What HELOC should veterans choose? 

For veterans with good credit who plan to use the full line of credit immediately, Figure and Aven are excellent choices. Both lenders offer fast funding, fixed rates, and fully digital application processes that streamline the borrowing experience.

While Figure and Aven are top choices for veterans with solid credit who need immediate access to their funds, choosing the right HELOC depends on your unique financial situation and priorities. If you’re ready to get started, check out how to apply for a HELOC.

Our expert’s take on veterans and credit scores

Natalie Slagle

CFP®

Veterans may face credit score challenges simply because their history may not be as long as a civilian who has had an ongoing credit line since their early 20s. A veteran may also face challenges with their debt-to-income ratio. Now that interest rates are higher, mortgage and HELOC payments are higher as well. Therefore, if a veteran is working on increasing their income and credit score, they may not have the same debt-to-income ratio as a civilian. This could either increase their interest rate offering at a non-veteran bank or simply have them be denied altogether. This is why it is crucial to understand each institution’s offerings and how they qualify their borrowers.

What are the best HELOC rates for veterans?

Rates are an important consideration when reviewing HELOC offers. These rates can change often, but these lenders offer some of the lowest rates as of September 2024:

• Fixed APR: Figure (8.60% – 17.25%) and Aven (6.99% – 15.49%)
• Variable: Armed Forces Bank (7.99%)
• Introductory APR: Armed Forces Bank (5.99% for 6 months); Bethpage Federal Credit Union (12-month intro rate of 6.99% for VantageScores of 720 and up)

Whether the rate is fixed or variable can also influence how much you pay in the long run. For fixed-rate HELOCs, the rate will stay the same for the entire time the HELOC is open. If you open an account when interest rates are low, a fixed-rate HELOC can be a smart option.

With a variable-rate HELOC, the interest rate changes based on market conditions. This can be a good choice if you open the HELOC when interest rates are high.

How we selected the best HELOCs for veterans

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 for veterans