Kentucky HELOC Rates and Lenders

A home equity line of credit (HELOC) is a great way to tap into your home equity to cover some of life’s bigger expenses. Shopping around for the right HELOC means finding one with a competitive interest rate, flexible repayment terms, fast funding, and a loan amount to cover your needs.

Looking for the best HELOC rates and lenders in the Bluegrass State? Below, we’ll look at both online HELOC lenders and local Kentucky HELOC lenders to help you find the best fit.

Reviews of the best online HELOCs in Kentucky

Online HELOC lenders offer Kentuckians speed and convenience. You can shop around for home equity lines of credit without leaving the couch, and you can typically find competitive rates with fast approval processes and quick funding.

After analyzing several online HELOC lenders, we’ve determined the best HELOC options for those in the Bluegrass State come from Bethpage and LendingTree.

Choose Bethpage for a HELOC with competitive rates from a trusted credit union, or check out LendingTree to prequalify for and compare several HELOC offers in one spot. Here’s a closer look at both options.

Aven

Best Customer Reviews

4.8 _/5

LendEDU Rating

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Why we picked it

Aven is an excellent choice for Kentucky homeowners looking for a quick and convenient way to tap into their home equity. With home values in Kentucky steadily rising, Aven’s fully digital process allows borrowers to access funds without the delays.

There’s no need for an in-person appraisal, and the fixed interest rates offer stability throughout the life of the loan, a major plus for Kentucky homeowners seeking predictable monthly payments.

The flexibility to borrow, repay, and borrow again during the 5-year draw period makes Aven a perfect fit for Kentucky residents managing ongoing projects or expenses.

Approval can be granted in as little as 15 minutes, meaning you won’t have to wait long to access funds when you need them. Aven also offers an optional debt protection program, giving homeowners extra peace of mind in case of unexpected financial challenges.

• Approval in as little as 15 minutes
• Optional debt protection program through Securian
• Automated appraisals with no in-person requirement
• High maximum loan-to-value (LTV) ratio
• Fixed interest rates for predictable payments
• Increases the credit line for select customers

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

Best Credit Union

4.7 _/5

LendEDU Rating

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Why we picked it

Bethpage charges no application, origination, or appraisal fees, which can save borrowers a significant amount of money. It offers flexibility via a wide range of lending amounts from $10,000 to $1 million. 

Additionally, it offers a 12-month fixed introductory rate for qualified borrowers, providing an attractive initial rate and zero closing costs for loans under $500,000.

• 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)	7.24% 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 is an online lending marketplace that allows borrowers to compare prequalified offers from multiple lenders without impacting their credit score. This service is particularly valuable for borrowers who want to shop around and find the best possible rates and terms. LendingTree’s platform provides access to various lenders, competitive rates, and customizable loan options, making it easier for borrowers to find a HELOC that fits their needs.

• 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 Kentucky

Local Kentucky HELOC lenders offer some benefits over online lenders. Choosing a bank or credit union with brick-and-mortar branches allows you to physically go in and talk to a loan officer in person. For some, being able to ask questions and interact one-on-one with an expert is important before making a huge financial decision like applying for a home equity line of credit.

Local HELOC lenders may also know the Kentucky housing market better and often offer low introductory rates that can limit your interest in the first few months.

Company	Rates (APR)	Location
Stock Yards Banks & Trust	7.50% – 24.00%	Kentucky, Indiana, and Ohio
General Electric Credit Union	5.99% – 12.99%	Northern Kentucky and southwestern Ohio
Louisville Federal Credit Union	9.00% – 12.00%	Louisville, Kentucky

Comparing local HELOCs in Kentucky

So how can you choose between these local Kentucky home equity line of credit lenders? Here are a few things to consider:

• Branch locations: Some banks and credit unions may have locations in only one city or region within Kentucky, while others might be available statewide.
• Bank vs. credit union: If you already belong to a specific bank or credit union in Kentucky, that might be the best place to start. If you don’t, you’ll need to weigh the pros and cons of banks and credit unions and decide which type of financial institution is right for you.
• Rates: Analyze the introductory rates and the rates after the introductory period to determine the cost of the HELOC. Also, compare funding speed, draw periods, and repayment terms. 

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

You can find great rates and terms via online and local HELOCs in Kentucky, but there are some subtle differences.

Technology

Online lenders tend to have mobile apps with cutting-edge technology and online platforms with easy application processes. This technology could lead to faster approval and funding and, as long as you’re tech-savvy, make it easier for you to manage your HELOC draws and repayments.

Face-to-face assistance

While online lenders typically offer phone and chat support, sometimes in-person help is hard to beat. If you prefer face-to-face assistance when applying for and managing a line of credit, a local Kentucky bank or credit union is your best bet. Just make sure they have branches close enough to your home.

Convenience

Online lenders let you get prequalified online, apply online, and get approved online. You can manage the whole process from the comfort of your home. This can be much faster and more convenient, especially if you’re in a hurry to tap into your home equity.

Understanding of Kentucky housing

Local Kentucky HELOC lenders are more likely to have a better understanding of the housing market in the Bluegrass State. This can be helpful during preliminary discussions when talking about estimated house value, even before the appraisal. 

Rates

Most home equity lines of credit have variable interest rates, so it’s hard to say who will have the most competitive rate and if that will stick over time. It’s a mixed bag: Some local Kentucky banks and credit unions may offer more competitive rates, but you might also find better HELOC rates online, particularly if you use an online marketplace such as LendingTree.

How do Kentucky HELOC rates compare to other states?

HELOC rates tend to be consistent across the country; many lenders base them around the current prime rate, which is set by the Federal Reserve. Right now, that prime rate is 8.50%, with many lenders offering starting rates of as low as prime minus 1 (7.50%).

That said, some states may offer lower rates, on average, than others. So how does Kentucky compare to other states’ HELOC rates? Based on our research, Kentucky HELOC rates currently range from 5.99% to 18.00%. Let’s see how that compares to nearby states:

• Michigan HELOC rates: 6.99% – 18.00%
• Ohio HELOC rates: 5.99% – 16.15%
• Virginia HELOC rates: 6.99% – 16.15%

How to get the best HELOC rates in Kentucky

To find the best HELOC rates in Kentucky, shop around. Consider at least a few local banks and credit unions (including your own, if you already belong to one), but also look for online lenders. An online loan marketplace is a great way to compare multiple lenders in one spot.

Comparing current rates is important. But to get a sense of how much you might spend down the road (since HELOC rates tend to be variable), don’t only look at current rates. Instead, read the fine print to determine each lender’s floor (how low rates could go) and ceiling (how high rates could go). Ideally, choose a lender with a low maximum interest rate.

If you’re having trouble qualifying for competitive interest rates, wait to apply until after you:

• Have improved your credit score: A higher credit score will improve your chances of getting a lower interest rate. The minimum credit score requirements for HELOCs are 640 or 670, but higher scores will serve you well.
• Reduce your debt-to-income ratio: You can reduce your debt-to-income (DTI) ratio by paying down debts or increasing your income (through a raise, new job, or side gig). Like a higher credit score, a lower DTI generally results in better interest rates.

You can also compare HELOCs based on their typical funding time, loan amounts, and repayment periods. Customer reviews for both the lender and the lender’s mobile app can also be telling when making a decision.

Are there any Kentucky-specific requirements or regulations?

As an applicant for a home equity line of credit in Kentucky, you should be aware of no state-specific requirements or regulations. However, all mortgage entities and loan originators—including those offering HELOCs—must be licensed and registered with the Nationwide Multistate Licensing System & Registry (NMLS).

While there are exemptions from this requirement for companies, any individuals working for exempt companies must be registered and licensed.

FAQ

What credit score do you need for a Kentucky HELOC?

The credit score required for a HELOC in Kentucky can vary depending on the lender. Generally, you need a minimum credit score of 620 to qualify for a HELOC. However, some lenders might require a higher score, such as 640 or 670, to offer better rates and terms. Higher credit scores typically result in lower interest rates and more favorable loan conditions.

What are the typical fees for a Kentucky HELOC?

Typical fees for a Kentucky HELOC can include application, origination, appraisal, and annual maintenance fees. Some lenders may also charge closing costs and early termination fees if you pay off the HELOC early. 

However, many lenders, especially credit unions, offer HELOCs with no application, origination, or appraisal fees, and some may cover closing costs for loan amounts under a certain threshold.

Are there any special programs or incentives for Kentucky HELOCs?

Yes, some lenders in Kentucky offer special programs or incentives for HELOCs. These can include introductory low-interest rates, rate discounts for setting up automatic payments, and zero-fee options. 

For example, certain local credit unions and banks might offer special rates or terms for members or specific community programs. It’s important to compare different lenders to find the best programs and incentives that meet your needs.

How we chose the best HELOCs in Kentucky

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 Kentucky.

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 Kentucky HELOC lenders