Illinois HELOC Rates and Lenders

If you’re looking for Illinois HELOCs, it’s important to research to get the best rate and terms. Finding a lender that offers low interest rates could save you thousands of dollars, especially if you plan to use your line of credit for the long term.

Below, we’re sharing the best HELOCs in Illinois from online and local lenders. We also give step-by-step instructions on how to get the best HELOC rates. By the time you finish reading, you’ll be well-informed about Illinois HELOCs and feel confident applying for one from a lender you trust.

Best online HELOCs in Illinois

These are the best online HELOCs in Illinois. Online lenders tend to have faster approvals and lower fees than traditional banks.

Because online lenders don’t have overhead costs like local banks do, these companies are often able to offer lower interest rates. So it’s worthwhile to compare the lenders below with some of your local options.

Figure

Best Overall

4.9 _/5

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Why we picked it

Figure provides an online HELOC application process, which you can complete in minutes. Funding is possible in just five days, making it one of the fastest in the industry. This speed, combined with competitive fixed rates and the flexibility of line amounts, makes it attractive for Illinois residents seeking quick and efficient home equity financing. Figure uses an automated valuation model for home appraisals, which helps expedite the approval process without the need for traditional, time-consuming methods.

• Fixed interest rates
• No in-person appraisal is needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

Loan details

Rates (APR)	6.55% – 15.54%
Loan amounts	$15,000 – $400,000
Draw period	5 years
Repayment term	5, 10, 15, or 30 years
Funding time	As few as 5 days
Properties	Primary home, second home, or investment property
Credit score	640

Aven

Best Customer Reviews

4.8 _/5

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Why we picked it

We selected Aven as a top choice for Illinois homeowners because of its streamlined, fully digital application process and borrower-friendly terms.

With a competitive fixed interest rate and no in-person appraisal required, Aven makes it easy for Illinois residents to access their home equity without the typical hassle of paperwork and long approval times.

Aven’s quick approval—sometimes in as little as 15 minutes—can be especially beneficial for Illinois homeowners who need fast access to funds for home improvements, debt consolidation, or other big expenses.

Additionally, the ability to redraw up to 100% of the funds during the 5-year draw period provides flexibility that’s ideal for ongoing projects. Aven also offers an optional debt protection program, giving Illinois borrowers added peace of mind.

• Flexible 5-year draw period with the option to redraw up to 100% of available funds
• Quick, fully digital application process with approval in as little as 15 minutes
• Competitive fixed interest rates with no in-person appraisal required
• Optional debt protection program to cover payments in case of unemployment
• Loan amounts from $5,000 to $400,000, giving Illinois homeowners flexibility for both small and large financial needs

Loan details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Draw period	5 years
Repayment terms	5, 10, 15, or 30 years
Funding time	As little as 3 days after signing
Properties	All types
Credit score	640

Bethpage FCU

Best Credit Union

4.7 _/5

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Why we picked it

Bethpage offers a fixed-rate HELOC option, which provides borrowers with the security of predictable payments throughout the life of the line of credit. This feature is appealing to budget-conscious borrowers who prefer stability over the potential fluctuations of a variable rate. Bethpage also stands out for its lack of application fees or closing costs, which can reduce the overall cost of obtaining a HELOC.

• 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 Marketplace

4.5 _/5

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Why we picked it

LendingTree excels as a marketplace that offers Illinois residents the ability to compare HELOC rates from multiple lenders, ensuring they find the best deal suited to their needs. This can lead to substantial savings over the life of a line of credit. LendingTree provides valuable educational resources that help borrowers understand their options and the implications of their choices, empowering them to make informed decisions.

• Easy comparison of multiple HELOC offers
• Access to a wide network of lenders
• No impact on credit score to compare offers
• User-friendly online platform
• Educational resources to assist borrowers

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

Hitch

Best for Flexible Qualification

4.2 _/5

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Why we picked it

Hitch is a newer player that differentiates itself by focusing on a transparent and customer-centric approach to HELOCs. It offers fixed and variable rates, with the possibility to switch between them during the loan term, providing flexibility to adapt to changing financial circumstances or interest rate environments. Hitch’s online tools and responsive customer service make managing a HELOC straightforward and hassle-free.

• Flexibility to switch between fixed and variable rates during the loan term
• Prequalify in minutes without affecting your credit score
• Access up to 95% of your home’s equity
• Assigned a dedicated loan officer during the application process

Loan details

Rates (APR)	8.25% – 13.00%
Loan amounts	$25,000 – $500,000
Draw period	10 years
Repayment term	20 years
Funding time	21 days on average
Properties	Most single-family homes, including apartments, condominiums, and houses
Credit score	620 (640 preferred)

Local HELOCs in Illinois

Many people prefer the face-to-face interactions that local banks provide. It’s also comforting to use a bank with a long-standing local reputation.

Local lenders also sometimes offer promotions to their customers or credit union members, such as low introductory rates. Here are several local lenders in Illinois that offer HELOCs.

Company	Rates (APR)*	Locations
Dupage Credit Union	8.50% – 18.00%	Multiple in IL
Illinois Bank & Trust	Starting at 2.99% APR** for 6 months	Multiple in IL
Illinois Community Credit Union	8.50% – 18.00%	Multiple in IL
First American Bank	Starting at 8.50%	IL, WI, & FL

Some local lenders offer low introductory rates, but it’s wise to calculate how much your line of credit will cost over time. A low introductory rate might suit your needs if you plan to use your line of credit for six months or less. 

However, if you want to use your line of credit for several years, another option might cost you less in interest over time. In addition to comparing rates, research the lender’s reputation and customer satisfaction. Ask lenders what the HELOC fees are so you can compare every aspect of a local HELOC before choosing one.

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

In Illinois, online lenders offer HELOCs at competitive rates. Local lenders offer lower starting rates, but only for a short term. Most online and local lenders offer HELOCs with variable rates based on the prime rate, so your rate is likely to fluctuate. 

While comparing interest rates is important, deciding between online and local HELOCs also comes down to personal preference. If you’re tech-savvy and don’t need the personal interaction of an in-person bank, online lending is likely a better choice for you.

However, if you feel more confident borrowing from an institution with a name you recognize, a bank or credit union in your local community might be a better option for you. Plus, with a local bank, you can walk into the branch and talk to someone if you have specific questions.

How do Illinois HELOC rates compare to other states?

The Wall Street Journal reports that the average HELOC rate across the United States is 8.61% (as of May 2024). Illinois HELOC rates are below the national average, with many local lenders offering 8.50% and online lenders starting at 6.24%.

One benefit Illinois residents have is the power of choice. Although interest rates are about the same when comparing different states’ average HELOC rates, some states, including Illinois, have more lending options.

Online lenders Figure and Hitch are available in Illinois, which is not the case in every state. According to Zillow data, Illinois housing prices went up 7.3% in the last year, so Illinois homeowners likely have increased home equity they can leverage with a HELOC to accomplish other goals.

How to get the best HELOC rates in Illinois

Here is what lenders look for when determining the interest rate for your HELOC. Before applying, make sure you meet these qualifications to get the lowest HELOC rates in Illinois.

Available equity in your home

HELOC lenders base your line of credit on the equity you have in your home. Typically, you must own at least 15% to 20% of your home to qualify for a HELOC. Depending on the lender, you may be able to borrow 80% to 90% of your available equity. 

Good credit

You will likely qualify for the most competitive interest rates if you have an excellent FICO credit score above 700 and preferably above 750. However, you can qualify for a HELOC with some lenders with a credit score of 650 and above if as you meet other qualifications. Good credit shows your lender that you’re likely to repay your line of credit on time.

Debt-to-income ratio

Although having available equity in your home and good credit is important, so is your debt-to-income ratio. Lenders might not approve you for a HELOC if you have a high income but several monthly debt payments. 

Lenders must believe you can afford your payments, so if necessary, pay down other debts to improve this ratio before applying for a HELOC.

Shop around

To ensure you’re getting the best HELOC, shop around. Find lenders that offer prequalifications, and get quotes from three to five lenders. Sometimes, online lenders offer lower interest rates on HELOCs, so compare local and online options.

When comparing lenders, look at all aspects of your line of credit, including fees, penalties, terms offered, interest rates, and any available promotions.

Are there any Illinois-specific requirements or regulations?

Illinois passed the Predatory Loan Prevention Act in 2021. The act makes it illegal for interest rates on consumer loans to exceed 36%. This is a win for consumers in Illinois, where payday loan lenders were once commonplace.

Illinois’s High Risk Home Loan Act offers consumers numerous protections against deceptive home loan lending practices.

If you’re unable to make your HELOC payments, the Illinois statute of limitations is five years on a HELOC, not 10 years. However, a HELOC lender may be able to start foreclosure proceedings on your house if you don’t pay. An Illinois attorney can help you if you have questions about this.

What lenders can’t do in Illinois is harass you about late payments because the bank would be in violation of the Fair Debt Collection Practices Act. And in Illinois, your HELOC is secondary to your original mortgage, which means during debt collection, your original mortgage lender gets paid first.

FAQ

What credit score do you need for an Illinois HELOC?

Most lenders require a credit score of at least 620 to qualify for a HELOC in Illinois. However, higher scores are often necessary to secure the best interest rates and terms. Scores above 700 are considered good and might help obtain lower rates and better terms.

What are the typical fees for an Illinois HELOC?

Fees for a HELOC in Illinois can include application fees, appraisal fees, attorney fees, and annual fees or membership dues. Some lenders may charge an origination fee, which is a percentage of the total line of credit. It’s not uncommon for total fees to range from 2% to 5% of the principal amount. However, some lenders offer promotions with reduced or waived fees, so be sure to shop around.

Are there any special programs or incentives for Illinois HELOCs?

In Illinois, some lenders offer special programs or incentives such as introductory rates, discounts for automatic payments, or loyalty discounts for current customers. Local credit unions or community banks may have special offers aimed at supporting local homeowners, including reduced fees or improved terms for certain demographics or for energy-efficient home improvements.

What happens if I move to another state with a HELOC in Illinois?

If you move to another state while you have a HELOC on a property in Illinois, the HELOC remains attached to the Illinois property. It is secured against the home itself. You would continue to be responsible for making payments according to the terms of the agreement, regardless of your physical residency. 

If you sell the home, you must pay off the HELOC as part of the sale process. If you wish to purchase a new home in a different state, you would need to apply for a new HELOC based on that property.

How we chose the best HELOCs in Illinois

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 Illinois HELOC rates and lenders