Many credit unions offer HELOCs. Use this guide to determine the best credit union HELOC for your financial needs.
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A home equity line of credit is a flexible way to access your home equity. Equity is the difference between what your home is worth and what’s remaining on the mortgage. A HELOC works much like a credit card, converting a portion of your equity into a credit line you can pull from as needed.
Many financial institutions, including credit unions, offer HELOCs. If you’re considering a credit union HELOC, we’ve rounded up the top ones below, including eligibility requirements, rates, and fees. Use this guide to find the best credit union HELOC for your household.
In this guide:
| Credit union | Highlights |
| Bethpage Federal Credit Union | No fees or closing costs. Fixed-rate withdrawal options. |
| Navy Federal Credit Union | 20-year draw period. Up to 95% LTV. |
| PenFed Credit Union | Credit lines up to $1 million. Fixed-rate options. |
| Alliant Credit Union | No closing costs on $250,000 or less. Intro rate lasts for three years. |
| United Federal Credit Union | Low introductory rates. No fees or closing costs. Up to 90% LTV. |
Note: Loan-to-value ratio (LTV) is the amount you owe on your mortgage divided by your home’s current market value.
Bethpage FCU is in Long Island with 30 New York-area locations and more than 30,000 ATMs nationwide. Its services include banking, saving, investing, lending, credit counseling, and insurance.
Bethpage charges no closing costs or application, origination, or appraisal fees on its HELOCs. Whereas many HELOCs come with variable interest rates, Bethpage offers up to three fixed-rate withdrawal options.
Check out our review of Bethpage HELOCs for more.
Navy Federal is a national credit union that serves U.S. military members, veterans, Department of Defense employees, and their families. Its 350 locations offer checking, savings, lending, and business services.
Navy Federal’s HELOCs are unique for their 20-year draw periods, which are twice as long as other options on our list. You can also borrow up to 95% of your home’s value (minus your existing mortgage balance).
PenFed—Pentagon Federal Credit Union—offers checking, savings, investment, credit card, and loan accounts. The company has locations across the nation and at several military bases worldwide.
PenFed stands out for its high HELOC limits ($1 million, the highest on our list). It also allows borrowers to switch to a fixed interest rate on some or all their interest payments.
Check out our review of PenFed HELOCs for more.
Alliant Credit Union is a national digital bank. It offers banking, lending, investing, and insurance services.
Alliant’s HELOC is unique for its introductory rates, which sometimes last up to three years. The credit union also charges no closing costs or appraisal fees on credit lines up to $250,000.
United Federal Credit Union offers banking, loans, credit cards, investing, insurance, and business services. It has locations across Arkansas, Indiana, Michigan, Nevada, North Carolina, and Ohio.
A United FCU HELOC comes with a low introductory APR for approved borrowers. Its current intro rate of 2.99% for the first six months is the lowest on our list. (The second-lowest is 6.5%.) It also has no fees or closing costs and allows for an LTV as high as 90%, the second-highest of all credit unions on our list.
Not every credit union offers HELOCs, but credit unions that provide mortgages and home equity loans often offer home equity lines of credit.
In most cases, you will need to become a credit union member before you can take out a HELOC with that institution. This often involves a nominal fee or opening a checking or savings account with a small minimum balance.
Financial institutions may offer HELOCs and then pause these programs when larger economic conditions change.
For example, job losses may be more common in a recession, increasing the likelihood that borrowers default on their HELOCs. When this happens, a credit union might temporarily cease offering HELOCs.
While we couldn’t find any credit unions that have discontinued their HELOC programs recently, certain notable banks have, including Wells Fargo.
Most HELOCs come with a variable interest rate. This means it changes based on the benchmark rate it’s tied to (usually the prime rate published by The Wall Street Journal). When your rate changes, so does your payment, which can make budgeting a challenge.
If you get a HELOC with a variable rate, it’s essential to understand the fine print of your loan—including how high your rate can get throughout your loan term. A healthy emergency fund is wise, as you’ll want to ensure you always have the cash to make your payment, even if it rises.
Certain credit unions offer fixed-rate HELOC options or will let you convert some or all of your balance into a fixed-rate loan later. With these, you’ll enjoy a consistent interest rate and payment for the remainder of your term.
If you’re interested in a fixed-rate HELOC, shop around and compare lenders, as not all credit unions offer this option. Check out our list of the best fixed-rate HELOCs.
To determine how much it will loan you, a credit union will first consider LTV.
As you can see above, the maximum you can get from a credit union HELOC is 95% of your home’s value, meaning your HELOC plus your mortgage balance can’t surpass more than 95% of your home’s value.
Here’s how to determine what a 95% LTV looks like:
In the above example, you could borrow up to $175,000 using a credit union HELOC. When setting your loan amount, your credit union will also consider your credit score, payment history, and overall risk as a borrower.
Many credit unions offer HELOCs, but we found the five we featured are among the best.
| Credit union | Highlights |
| Bethpage Federal Credit Union | No fees or closing costs. Fixed-rate withdrawal options. |
| Navy Federal Credit Union | 20-year draw period. Up to 95% LTV. |
| PenFed Credit Union | Credit lines up to $1 million. Fixed-rate options. |
| Alliant Credit Union | No closing costs on up to $250,000. Intro rate lasts for three years. |
| United Federal Credit Union | Low introductory rates. No fees or closing costs.Up to 90% LTV. |
Remember: Rates and qualifying standards can vary by institution, so if you’re considering a credit union HELOC, compare options before moving forward. This will ensure you get the best deal for your needs.
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