Vermont HELOC Rates and Lenders

If you need to access money and have significant equity in your Vermont home, one option to consider is taking out a home equity line of credit (HELOC). Many Vermont HELOCs offer competitive interest rates, including promotional rates.

The state of Vermont is a leader in consumer protection. It limits the interest rates lenders can charge for HELOCs. Here are our top picks for online lenders in Vermont. We’ve also provided several local lenders’ rates below. Remember to compare rates, terms, and fees when searching for the best HELOC.

Reviews of the best online HELOCs in Vermont

Here are three online lenders with options available to Vermont residents. We’ve vetted these lenders thoroughly and found that online lenders are often more convenient than local ones. Online lenders might have a faster process to fund a HELOC and may offer competitive interest rates, especially if you have excellent credit.

Figure

Best Overall

4.9 _/5

View Rates

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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

LendingTree

Local HELOCs in Vermont

Vermont borrowers might prefer doing business with a local institution. Several local banks on this list have existed longer than online lenders, which have become popular in recent years.

If reputation and experience are important to you when it comes to finding a lender, you might be more comfortable banking with a familiar name and a branch located near you.

Here are several local banks and credit unions to consider, with locations in various parts of Vermont. These lenders offer rates comparable to the national average. 

Company	Rates (APR)	Location
VSECU	8.00% – 18.00%	Vermont and Eastern New York
New England Federal Credit Union	8.00% – 18.00%	Several in Vermont
Union Bank	Starting at 7.50%	Vermont and New Hampshire
Northfield Savings Bank	Starting at 8.25%	Several in Vermont

When comparing local lenders, consider the location. Does a lender have a branch near your home? Consider promotional and variable interest rates, too. Some lenders offer longer promotional rates than others.

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

Some online HELOC lenders on this list have lower starting rates than the local banks and credit unions we researched. These online lenders also advertise faster loan distribution, with some reporting that you can get your HELOC funds in days. Local banks and credit unions will have a more traditional lending process that could take longer. 

The best option depends on your situation. You might qualify for a lower interest rate with an online lender if you have excellent credit. However, with average or good credit, it’s possible that online and local lenders will offer you comparable rates.

In Vermont, some local and online lenders offer promotional rates. So, make sure you compare several options to get the best overall HELOC. Consider your comfort level, too. Some people prefer face-to-face interactions at local banks.

How do Vermont HELOC rates compare to other states?

According to the Wall Street Journal, the average HELOC rate as of May 2024 is 8.61% nationwide. Average rates don’t fluctuate much between states, but some states have more lending options.

For example, some online lenders, including Figure, are only available in certain states. Vermont is one of them, meaning if you live there, you can compare local lenders with online lenders.

The lending options on this list show that Vermont lenders offer rates starting from 6.25% to 9.75%, which is consistent with the national average.

Vermont housing market trends

Vermont is an excellent place to own a house. According to Zillow data, Vermont home values have increased by 4.4% in the past year, just above the national average of 4.3%. 

When home prices go up in value, Vermont homeowners have more equity to use for a HELOC. A Vermont Independent News Source, Seven Days, reported that demand for housing in Vermont still exceeds availability. So homeowners who can’t find larger homes to suit their needs often turn to HELOCS to fund renovations.

How to get the lowest HELOC rates in Vermont

Every lender sets its own minimum credit requirements for HELOCs. You need a credit score of 620 or above for most lenders—sometimes higher. You’ll likely need to provide your employment data so your lender can calculate your debt-to-income ratio.

The higher your credit score, the more likely you’ll be eligible for the most competitive interest rates. In addition to having good credit, many lenders also require you to have 15% to 20% equity in your home before being eligible. Some lenders might also require you to pay for a home appraisal.

If you have sufficient equity and good credit, shop around to secure the best HELOC rate. Compare at least three lenders, including rates, terms, fees, and any available promotions. Don’t go with the first lender you find, or immediately choose your home bank. Comparing multiple lenders can help you find the best overall HELOC.

Are there any Vermont-specific requirements or regulations?

The Vermont Law Review states, “Vermont is a leader” in consumer protection, with many consumer lending laws in place. By law, federal credit unions must cap interest rates at 18%, so your HELOC rate cannot be over 18% in Vermont if you borrow from a credit union such as FourLeaf.

Vermont is an equitable property state. That means if you are married and jointly own a home, you can’t apply for a HELOC without your spouse’s consent.

If you secure a second mortgage at a different lender from your primary mortgage, you must let your primary lender know. In Vermont, your first mortgage takes precedence over a HELOC, meaning if your loan goes into default, your debt repayment goes to your primary mortgage lender first.

FAQ

What credit score do you need for a Vermont HELOC?

Each lender has unique criteria, but most lenders in Vermont require a minimum credit score of 620 to qualify for a HELOC. However, a higher credit score (700 or above) can help you secure better rates and terms. 

What are the typical fees for a Vermont HELOC?

Typical fees for a Vermont HELOC may include:

• Application fee: $100 – $500 (sometimes waived)
• Origination fee: 0% – 5% of the loan amount
• Annual fee: $50 – $75
• Closing costs: $500 – $2,000
• Appraisal fee: $300 – $600

Some lenders may waive or reduce these fees as part of promotional offers, so be sure to inquire about fee structures when comparing HELOC options.

Are there any special programs or incentives for Vermont HELOCs?

Yes, some lenders offer special programs or incentives for Vermont residents. These can include lower introductory rates, reduced fees, or discounts for certain groups, such as veterans, teachers, or first responders. Credit unions may also offer member-specific benefits. It’s important to ask lenders about any special programs or incentives that may apply to you.

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

If you move to another state while you have a HELOC in Vermont, your HELOC remains tied to your Vermont property. You will still be responsible for making payments according to the terms of your HELOC agreement. 

If you sell your Vermont home, you will typically need to pay off the remaining balance of your HELOC from the proceeds of the sale. Always check the specific terms and conditions of your HELOC agreement. Some lenders may have additional requirements or stipulations for relocation.

How we chose the best Vermont 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.

Recap of Vermont HELOC rates and lenders