Indiana HELOC Rates and Lenders

Using a home equity line of credit (HELOC) to help with tasks like renovating your home in Indiana or consolidating high-interest debt can be a worthy financial move. It can help you reach your financial goals, whether it’s to increase your home’s value before selling it or saving on interest charges. 

Indiana homeowners have many HELOC options, including national and local lenders. Shopping around lenders is one of the best ways to get the best rates. Start with our list below to help you find the best one. 

Reviews of the best online HELOCs in Indiana 

Choosing an online lender to borrow a HELOC instead of a local Indiana one can offer several benefits. For one, online lenders can offer more competitive rates since there may be less overhead for them to run their operations. 

You may also be able to qualify for special offers that some local lenders don’t offer, like introductory interest rates or discounts. For example, you may get a lower interest rate by opting into automatic payments.  

The lenders you see below offer some of the best Indiana HELOCs. 

Figure

Best Overall

4.9 _/5

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Why we picked it

Figure is our top pick for a HELOC due to its blend of competitive fixed rates, quick funding, and flexible terms. 

Advanced technologies such as blockchain and AI ensure a fast and efficient approval process, with funds available in as few as five days. This makes Figure ideal for borrowers seeking quick and reliable access to home equity without the traditional banking hassle.

• 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	$20,000 – $750,000
Draw period	2 – 5 years
Repayment term	10, 15, 20 or 30 years
Funding time	As few as 5 days
Properties	Primary home, second home, or investment property
Minimum credit score	640

Figure Disclosures

1. The Figure Fixed Rate Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
2. Approval may be granted in five minutes but is ultimately subject to verification of income and employment, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary, and where loan amounts are under $400,000 which would not require an appraisal. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing, or that require a waiting period prior to closing, or where loan amounts exceed $400,000.
3. To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
4. A Figure HELOC is secured with your home as collateral, whereas personal loans and credit cards are not.
5. Our loan amounts range from a minimum of $15,000 to a maximum of $750,000. For properties located in AK, the minimum loan amount is $25,001 and for properties located in TX, the minimum loan amount is $35,000. Your maximum loan amount may be lower than $750,000, and will ultimately depend on your home value, lien position, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models or appraisal. Loan amounts above $400,000 are subject to appraisal.
6. Available initial APRs range from 6.65% to 15.25%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. Additionally, for the variable rate HELOC, the APR is based on an interest rate index and the credit agreement margin, and an increase or decrease of the index value will cause a corresponding increase or decrease in the variable APR after account opening subject to a rate floor and rate cap, and your monthly payments may increase or decrease as the APR changes. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn’t permit eNotary ($350), and recording fees ($0 – $315) and recording taxes, which vary by state and county ($0-$1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
7. You should consult a tax advisor regarding the deductibility of interest and charges to your Figure Home Equity Line.
8. The Figure Variable Rate Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on the selected rate at application and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the initial draw, plus a stated margin; however, the rate and payment will adjust monthly based on the market and the fluctuation of the Index subject to a Rate Cap and Rate Floor. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. The index can change at any time and the unpaid balance of all draws are subject to the monthly variable rate. Accordingly, variable rates are based on the market and may change after account opening. This product is not available in: MA, VA, MS, IL, WI, VT, DC, OK, TX, NY, CO, WY, WV, SC.

FourLeaf

Best credit union

4.7 _/5

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Why we picked it

FourLeaf offers HELOCs with a low fixed introductory rate for creditworthy borrowers. This lender is an excellent option for homeowners needing lines of credit due to its lack of upfront fees and wide range of borrowing amounts. It provides the financial leverage required for home renovations or other major expenses. 

FourLeaf’s commitment to customer service and flexible loan terms make it an excellent choice for those looking to maximize their home equity. The straightforward application process and competitive rates further enhance its appeal, ensuring borrowers can access the necessary funds.

• Borrow $10,000 – $1 million
• No application, origination, or appraisal fees
• Convert some or all 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 starting at 6.75%ⓘ
Loan amounts	$10,000 – $1 million
Repayment terms	Up to 20 years
Funding time	6 to 10 weeks 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 at comparison shopping for Indiana residents. 

The platform’s extensive network of lenders and user-friendly interface make it simple for homeowners to compare multiple HELOC offers. This ensures borrowers can find the most competitive rates and terms tailored to their specific financial needs. 

By using LendingTree, Indiana homeowners can make informed decisions and secure the best possible deal for accessing their home equity.

• 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

Local HELOCs in Indiana

Local financial institutions offer many benefits when borrowing a HELOC. For one, you may already have a relationship with staff members at your local bank. This relationship could mean that local lenders can offer you different HELOC options or find ways for you to qualify for one. 

For example, your credit score is a major factor in determining your eligibility for a loan. If you work with a local bank or credit union, these lenders may be more willing to extend you credit, since many of these organizations are there to help serve the local community. 

Of course, you’ll still most likely meet eligibility criteria, such as being within a certain debt-to-income ratio, having proof of income, and having enough home equity. 

Company	Rates (APR)	Location
Indiana State University Federal Credit Union	Starting at 6.4%	Terre Haute
Centier Bank	Starting at 9.25%	Branches throughout Indiana
Wintrust Community Bank	Starting at 8.75%	Branches throughout Indiana
Indiana Members Credit Union	Starting at 3.90%	Branches throughout Indiana

When choosing between local lenders, consider rates, how much you can borrow, and how easy it is to apply for a HELOC. Some community banks, for example, may have online applications, whereas smaller financial institutions may require you to apply in person. 

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

Some of the main differences between online and Indiana HELOCs include factors like: 

• Interest rates: Online lenders may offer more competitive interest rates, though only the most creditworthy borrowers qualify for them in most cases. That being said, rates with local credit unions may be just as competitive, since these financial institutions are in the business of helping their members. 
• Ability to get prequalified: In most cases, you may be able to get a quote without affecting your credit score with online lenders. The option may be with local lenders, but you’ll have to contact the bank or credit union to find out. 
• Personalized service: Local lenders tend to have a dedicated loan officer or representative you work without throughout the HELOC process. You may even be able to speak with them in person. You may receive personalized service with online lenders, but you’ll only be able to speak with them online or on the phone. 
• Credit requirements: Both online and local lenders have minimum requirements for applicants. However, local lenders may be more willing to work with you on finding ways to qualify you for a HELOC if your credit score is less than stellar. 

The value of high-quality service cannot be emphasized enough. For people who value relationships, a local lender is typically a good option, at the potential risk of higher costs and fees. Other added benefits of working with a local credit union: Flexibility and treating you like a “real person,” rather than just a number.

Kyle Ryan, CFP®

How do Indiana HELOC rates compare to other states? 

There isn’t clear data on average HELOC rates in Indiana, and many local banks and credit unions don’t advertise their rates online. From several that we found, rates are on par with what other online lenders offer. Using the local lenders, we reference above, the average HELOC rate hovers around 7%. 

Aside from rates set by the Federal Reserve, other factors could affect HELOC rates in Indiana, among other states. For one, your home’s current market value can determine whether you can get a HELOC. Plus, if home values decline, your lender may decide it won’t lend you any more money. This is also the case if your income, credit score, or DTI decrease.

In Indiana, home prices have increased 3.4% year over year, according to RedFin data. This may indicate that HELOC lenders feel fine with continuing to lend to homeowners in the state. Since your home acts as collateral for HELOC lenders, an upward trajectory for home prices is a positive sign. 

What does this all mean? Your location doesn’t have a major impact on HELOC rates. Rather, factors that you may be able to influence might. 

How to get the best HELOC rates in Indiana

One of the best ways to get the best Indiana HELOC rates is to shop around for the right lender. You can start by getting quotes from various online lenders, and contact local ones (if you so choose) to compare your options. 

Aside from rates, you may want to consider other features like payment terms—like how long the draw and repayments are to choose from, if any. Or, see how the maximum you can borrow, as some lenders may allow you to borrow from a higher portion of your home equity than others. 

Other eligibility requirements that may affect your ability to get the lowest rate include:

• Credit score: Your credit score is a snapshot of your borrowing history. In other words, the higher your score, the less risk you pose to lenders because you’ve demonstrated that you’ve paid back loans on time. Check your credit score and see if there’s any way you can improve it to help your chances of scoring a lower rate. 
• Debt-to-income ratio (DTI): Your DTI ratio considers how much of your income is being used towards debt. The higher your DTI, the more it could affect your ability to qualify for a HELOC. 

If you don’t have the credit score to get the lowest HELOC rates, first understand what is negatively impacting your score and address it. Once you understand how to improve your credit score, there may be other factors preventing you from getting a HELOC or a favorable rate. At this point, ask the lender what the credit report says on its end to understand why you aren’t being approved. Sometimes, it is a matter of your DTI ratio, in which you can consolidate or pay off a loan balance.

Kyle Ryan, CFP®

Are there any Indiana-specific requirements or regulations? 

While there aren’t Indiana-specific laws or regulations that could affect HELOC rates or terms, all lenders must follow guidelines set by Regulation Z, or the Truth in Lending Act (TILA).

Regulation Z requires HELOC lenders to:

• List out any fees you may need to pay for opening and maintain your HELOC 
• List the minimum and maximum amounts you can borrow 
• Provide detailed information on rates and when it may change
• Provide disclosures, such as repayment terms and what can happen if you default

FAQ

What credit score do you need for an Indiana HELOC?

Credit scores play a significant role in securing a HELOC in Indiana. Many lenders require a minimum credit score for a HELOC of 620. However, aim for a score of 700 or higher for the best rates and terms. A higher score improves approval chances and may lower your interest rate and associated costs.

What are the typical fees for an Indiana HELOC?

Fees for an Indiana HELOC can vary, but common costs include application fees, appraisal fees, and closing costs. Application fees range from $0 to $500. Appraisal fees may cost between $300 and $500, depending on the property’s value and location. 

Closing costs usually range from 2% to 5% of the loan amount. Some lenders may waive or reduce fees for qualified applicants, so it’s worth shopping around.

Are there any special programs or incentives for Indiana HELOCs?

Yes, Indiana offers special programs and incentives to homeowners seeking HELOCs. Some lenders provide promotional rates for a limited period, such as six months to one year. Programs for veterans and first-time homebuyers offer reduced fees or rates. 

Nonprofit organizations and state agencies may also provide grants or low-interest loans for eligible homeowners. Researching these options can help you save money and find the best deal for your financial situation.

How we chose the best HELOC lenders in Indiana

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 Indiana.

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 Indiana HELOC rates and lenders