Hawaii HELOC Rates and Lenders

Do you have long-overdue improvements to your home in Hawaii? You might finally be able to make them happen with the existing equity in your home using a home equity line of credit (HELOC).

Continue reading below to learn about our recommendations for the best Hawaii HELOCs available and considerations to make before you apply.

Company	Rates	LendEDU rating
Bethpage FCU	6.99% for 12 months, then variable	4.7/5
LendingTree	Starting at 6.24%	4.5/5
Navy Federal Credit Union	Starting at 8.75%	3.9/5

Reviews of the best online HELOCs in Hawaii

Online Hawaii HELOC lenders can be convenient for borrowers to cut down on comparison-shopping times. They can also be user-friendly, with access to the application at your fingertips using your smartphone.

Bethpage FCU

Best Credit Union

4.7 _/5

LendEDU Rating

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Why we picked it

Bethpage offers competitive HELOC rates for homeowners in Hawaii, making it an excellent choice for those looking to tap into their home equity.

Known for its customer-friendly policies, Bethpage FCU provides flexible draw periods and repayment terms, which can be beneficial for large HELOCs. The credit union’s reputation for personalized service and financial stability ensures that borrowers get support tailored to their unique financial needs.

With its attractive rates and member-focused approach, Bethpage FCU is a standout option for HELOCs in Hawaii.

Borrow $10,000 – $1 million
No application, origination, or appraisal fees
Convert part of your HELOC to a fixed-rate option
12-month fixed introductory rate for qualified borrowers
$0 closing costs

Loan details

Rates (APR)	6.99% for 12 months, then variable
Loan amounts	$10,000 – $1 million
Draw period	10 years
Repayment term	5, 10, or 20 years
Funding time	36 – 70 days, on average
Properties	Primary homes, second homes, or condos
Credit score	670

LendingTree

Best for Comparison Shopping

4.5 _/5

LendEDU Rating

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Why we picked it

LendingTree excels as a comparison shopping platform, offering Hawaii borrowers access to multiple HELOC options from various lenders.

LendingTree lets homeowners compare rates, terms, and conditions, ensuring they find the best possible deal.

The ease of use and comprehensive lender network make LendingTree a valuable resource for anyone seeking a HELOC. Its transparency and customer-centric approach help borrowers make informed decisions, potentially saving them money and time in the process.

Access to multiple lenders
Comprehensive comparison tools
Competitive rates
Customizable loan options

Loan details

Rates (APR)	Starting at 6.24%
Loan amounts	$10,000 – $2 million
Draw period	2 – 20 years
Repayment term	5 – 30 years
Funding time	Varies
Properties	Varies
Credit score	Varies, 620 advisable

Navy Federal Credit Union

3.9 _/5

LendEDU Rating

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Why we picked it

Navy Federal Credit Union, best known for offering the military and their families financial products and services, strives to be the No. 1 trusted financial institution.

This credit union has grown to 13 million members and provides many financial products beyond banking, including auto loans, student loans, life insurance, and HELOCs.

Members can apply for its HELOC anywhere, anytime. Plus, Navy Federal is available 24/7 to answer questions and determine the best terms and rates for your needs.

Access up to 95% of home value
No application, origination, annual, or inactivity fees$0 closing costs
Additional rates and terms available

Loan details

Rates (APR)	Starting at 8.75%
Loan amounts	$10,000 – $500,000
Draw period	20 years
Repayment term	20 years
Funding time	45 – 55 calendar days, on average
Properties	Primary homes, second homes, and investment properties
Credit score	Varies, 650 advisable

Ask the expert

Erin Kinkade

CFP®

You’ll find fewer online options in Hawaii because the state’s real estate market is very different from the continental U.S. The lender has to consider multiple factors, such as lava insurance, along with specific local rules and regulations.

Local HELOCs in Hawaii

Local lenders, such as the popular options below, offer a few advantages, including enticing introductory APRs with several term options to suit borrowers.

Company	Rates (APR)	Location
Bank of Hawaii	6.99% for 2 years, then prime rate	Statewide
Hawaii State Federal Credit Union	6.75% for 2 years, then prime plus margin	Various Oahu & Maui islands
HawaiiUSA Federal Credit Union (FCU)	6.50% for 2 years, then prime plus margin	Various (Oahu Island)
First Hawaiian Bank	7.05% for 2 years, then prime plus 1.50%	Statewide

*Rates in July 2024

These local lenders base their variable rates on the prime rate—the current rate banks offer their most creditworthy customers in good standing.

If you’re considering applying for a Hawaii HELOC with any of these lenders, take note of the following features they offer prospective borrowers:

Introductory APRs
Fixed-rate term options
Access to home equity

In addition to introductory APR options between two and five years, Bank of Hawaii offers fixed rates for up to 15 years. With Hawaii State Federal Credit Union, you can access up to 95% of your home’s value. Plus, it provides eight term-length options for fixed rates, starting at three years.

First Hawaiian Bank’s greatest selling features are closing cost fee waivers and skipping the appraisal on homes valued below $400,000.

As for HawaiiUSA FCU, this credit union offers lines of credit up to $1 million. Competitive with online lenders but far more than many other financial institutions.

If you’re seeking a local lender for a Hawaii HELOC, consider the lender’s fixed-rate terms and how much equity you’ll need. It’ll make a significant difference in choosing a lender.

What’s the difference between online and local HELOCs in Hawaii?

While you may encounter similarities between online and local Hawaii HELOCs, your particular circumstances, such as a short vs. long-term project, needing money fast, or an ambitious goal to cut the overall cost of the loan, can highlight their key differences.

Online lenders are typically known for their real-time-generated information and loan offers, no matter where you are. It all just depends on the information you provide.

Conversely, local lenders may offer several loan term options to suit your needs, including fixed rates past introductory periods.

As you begin your search, consider starting with local Hawaii HELOCs if you’d like:

Potential access to home equity above 80% to 85%
Saving on interest
Flexibility in choosing your fixed-rate term

Consider starting your search with the online lenders we reviewed above if you’d like:

Access to higher loan amounts
User-friendliness
Quick comparison shopping
Like the convenience of researching your options from home or anywhere on your own

How do Hawaii HELOC rates compare to other states?

The national average HELOC rate was around 10.04% as of July 2024. Many of the lenders in Hawaii, including some we’ve shared, base theirs on the prime rate—currently 8.50%—plus at least a 0.50% margin.

Your Hawaii HELOC rates won’t vary greatly as long as you’re a creditworthy borrower with at least 15% to 20% equity in your home—the typical minimum required to open a HELOC.

The average rates for Hawaii HELOCs aren’t far from the national average or many other states. However, it’s important to have good credit to get approved for a HELOC at rates on par with the national average, give or take.

Borrowers with good credit often pay much less interest on their loans, which can be between a couple or tens of thousands. But that alone doesn’t give you the green light. Always create a plan for how to repay a loan before you apply.

How to get the best HELOC rates in Hawaii

Your Hawaii HELOC eligibility will likely depend on the equity you have in your home, your debt-to-income ratio (DTI)—monthly debt payments divided by monthly gross income—and your credit score.

Risky borrowers typically either have no credit history or low credit scores, and higher DTI ratios. The more money you owe, especially when several different lenders are involved, the less likely you are to repay any additional loans you assume.

Getting the best HELOC rates in Hawaii will require you to be a low-risk borrower. You can work toward becoming one by:

Cutting your DTI ratio by paying debts down as quickly as possible—including the mortgage
Making extra mortgage payments—which lowers your DTI and increases home equity
Attaining a FICO credit score of at least 740

Locking in the best rates may also depend on shopping around. Don’t stop at the first lender you find or accept the first offer you receive. Take some time to compare offers, and write down the details to compare the rates, terms, and features.

Checking rates online is an easy place to start before you stop at a local branch. Before you decide on a HELOC, understand the fees you’ll need to pay at closing, if any, and your rate after the introductory period.

You should also read ‌lenders’ online customer reviews from third-party sources, such as Consumer Affairs. It might save you irreplaceable time and trouble by helping you avoid lenders with poor customer service or bad business practices.

Are there any Hawaii-specific requirements or regulations?

States across the U.S. generally have similar HELOC requirements and regulations, because there are federal laws that govern lending practices.

Before applying for a HELOC in Hawaii, get a copy of the loan qualifiers, terms, and conditions. To get approved, most lenders require homeowners insurance—and flood insurance if you’re in a flood zone.

If there are any changes regarding your home, such as to your insurance or if you decide to sell, the terms of your HELOC could change. So it’s best to inform the lender right away. Other than that, much of what’s involved in applying for a HELOC rests in your hands.

Just make sure you carefully consider all your options before assuming the loan. Borrowing may be convenient, but so is one less IOU. Saving up and financing your project means zero interest. But if you borrow, it’s always a good idea to make sure you can afford to do so—and come up with a repayment plan.

Ask the expert

Erin Kinkade

CFP®

Living on an island adds a level of risk homeowners must be willing to understand and absorb—either through insurance or self-insuring. It ultimately depends on the rules and regulations imposed, the required insurance, the perils insurance covers and does not cover, and lastly, what the homeowner can afford to lose.

FAQ

What credit score do you need for a Hawaii HELOC?

Lenders typically look for a good credit score when applying for a HELOC. A credit score of 680 or higher can help you qualify for more favorable terms. However, some lenders may entertain scores in the mid-600s, especially if other aspects of your financial profile are strong.

A higher credit score often translates to better interest rates, so boost your score before applying.

What are the typical fees for a Hawaii HELOC?

Fees associated with a Hawaii HELOC vary by lender but often include origination, appraisal, and annual fees. You might also encounter recording and early termination fees if you pay off the HELOC early.

These fees can range from 2% to 5% of the total credit limit on average. It’s essential to compare the fee structures of various lenders to find the best deal.

Are there any special programs or incentives for Hawaii HELOCs?

Yes, some lenders offer special programs and incentives for Hawaii residents. These can include lower introductory interest rates, reduced fees for energy-efficient home improvements, or special offers for veterans and active-duty military personnel.

Local credit unions and smaller banks may also offer specialized programs that large national lenders don’t provide. Always ask the lender whether unique programs are available for Hawaiian residents.

How we selected the best Hawaii HELOCs

LendEDU evaluates HELOC lenders to help readers find the best HELOCs. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. They’ve gone through an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Hawaii.

Since most local lenders aren’t available outside state lines, they haven’t gone through the same review process as the online lenders. Instead, we found them through separate research and determined that each offered solutions worthy of consideration by readers.

Recap of online Hawaii HELOC lenders

Company	Rates	LendEDU rating
Bethpage FCU	6.99% for 12 months, then variable	4.7/5
LendingTree	Starting at 6.24%	4.5/5
Navy Federal Credit Union	Starting at 8.75%	3.9/5