The Best Credit Union HELOC Rates and Terms in 2025

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.

Table of Contents

1. Do credit unions offer HELOC loans?
2. The best credit union HELOCs
   1. FourLeaf FCU
   2. LendingTree
   3. Alliant Credit Union 
   4. PenFed Credit Union
      1. Why it’s one of the best
3. HELOCs from credit unions vs. banks and online lenders
4. Is it easier to get a HELOC through a credit union?
5. Who has the best HELOC rate: credit unions or banks?
6. Do credit unions offer home equity loans?
7. Can you get a credit union HELOC on an investment property?

Do credit unions offer HELOC loans?

Yes, many credit unions offer HELOCs. The process works the same way as at a bank, but credit unions often provide a more personal experience and may charge fewer fees. You’ll still need enough home equity to qualify, along with meeting the credit union’s membership requirements.

Some credit unions are easier to join than others, and their rates and features can vary widely. That’s why it helps to compare a few options side by side.

The best credit union HELOCs

After extensive research, we’ve identified four standout options that cater to different borrower needs. Here’s a closer look at each of our top picks and what makes them stand out.

HELOCs from credit unions vs. banks and online lenders

Credit unions work much like banks and online lenders when it comes to HELOCs. They determine your borrowing limit based on your loan-to-value (LTV) ratio, credit score, and financial profile, but typically offer lower fees, more flexible lending criteria, and a more personalized member experience.

The main differences come down to speed, convenience, and costs. Credit unions may take longer to approve and fund loans because they often require in-person appraisals or membership verification, but they frequently waive appraisal and closing fees.

Online lenders such as Figure, Aven, and Spring EQ focus on speed and digital convenience, sometimes offering fixed-rate HELOCs or higher LTV limits.

Feature	Credit unions	Online lenders and banks
Rates and fees	Lower rates, fewer fees	Competitive, may include origination fees
Speed and convenience	Slower approval, personal service	Fast, digital application and funding
Product structure	Variable-rate HELOCs	Often fixed-rate, full draw at origination
Loan-to-value (LTV)	Typically 80%–95%	Up to 90% for qualified borrowers
Appraisals	May require in-person appraisal	Often automated or virtual
Membership	Usually required	Not required
Best for	Lower costs and personalized support	Fast access and flexible options

Is it easier to get a HELOC through a credit union?

It can be. Credit unions are often more flexible when evaluating HELOC applications, which can make qualifying easier compared to large banks or online lenders.

• Credit score: Credit unions may approve borrowers with moderate or fair credit, while banks often require higher scores.
• Debt-to-income ratio: Some credit unions allow higher DTI ratios, giving more room for borrowers with existing obligations.
• Home equity: Many credit unions permit higher loan-to-value (LTV) ratios, letting you borrow with less built-up equity.
• Employment and income: Credit unions may consider alternative income sources or nontraditional employment histories.
• Membership: You must join before applying, but most credit unions make this simple through a small donation or community affiliation.

Prequalifying with both a credit union and a bank can help you compare how each views your eligibility and what terms you might qualify for.

Who has the best HELOC rate: credit unions or banks?

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.

Do credit unions offer home equity loans?

Yes, many credit unions offer home equity loans in addition to HELOCs. A home equity loan works more like a traditional installment loan, where you receive a lump sum upfront and repay it over a fixed term with a fixed interest rate.

Credit unions often price these loans competitively and may charge fewer fees than banks. That can make them a solid option if you prefer predictable monthly payments or want to borrow a specific amount for a project.

As with any lender, you’ll need enough equity in your home to qualify, along with meeting the credit union’s membership requirements. If you are comparing a HELOC with a home equity loan, a credit union can be a good place to start since many offer both products.

Can you get a credit union HELOC on an investment property?

Some credit unions offer HELOCs on investment properties, but the rules vary. Many limit HELOCs to primary residences because rentals carry more risk for the lender.

Among the credit unions in this article, PenFed is the only one that clearly allows HELOCs on investment properties. Alliant restricts its HELOCs to owner-occupied homes, and FourLeaf does not list investment properties as eligible.

Even when a credit union does allow it, you can expect tighter requirements. Lenders often want higher credit scores, more equity, and strong income for investment property HELOCs. Rates may also be higher than what you’d get on a primary home.

If you’re considering this, check with the credit union early, since availability and requirements can differ more than with standard HELOCs.

How we chose the best credit union HELOCs

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.