Good local credit unions or banks for HELOC?

11 Replies

Does anyone have suggestions for a good local credit union or bank in the Bay Area or East Bay? Looking for one that has low rates for HELOCs. Thanks!

@Natalie Hahn I've heard great things about Pentagon Federal Credit Union even though it's not local to your area. I think they are hard to beat if you qualify for the 5.5% APR.

@Natalie Hahn any particular reason you want a local CU? I was researching HELOCs 2 months back and had found Digital Federal Credit Union to offer the most competitive rates. It is not local but is very accessible.

Originally posted by @Kunal Shah :

@Natalie Hahn any particular reason you want a local CU? I was researching HELOCs 2 months back and had found Digital Federal Credit Union to offer the most competitive rates. It is not local but is very accessible.

Great, thanks for the tip! I was just looking for local ones because I thought it'd be more convenient to talk in person. Does it really matter where you get your HELOC or do you pretty much just find the lowest rates?

I'm using third federal. Rate is -1.01% to prime as reported in the WSJ. no fees... at all.  except for $65 per year 2-10 of the draw period. Payments are principle and interest. Far and away the best offer I found.

If you need any details

I am wondering does any CC or banks NOT require full appraisal?

i am planning apply HELOC 200k from my rental 100% equity property.

I went shopping for a HELOC last year and wound up using StarOne CU, primarily because most other banks wouldn't offer a HELOC over 200-300k (regardless of LTV) and the rate was reasonable (adjustable, currently 5.5%).

@Nguyen Quach

When I got my HELOC the "appraisal" consisted of the lender having someone drive by the house and take pictures from the street to check external home condition and put together some comparables in the area. Very quick and easy and they never bothered me.

@David Lutz

third federal Heloc pmt gonna be interest+principal. Is that mean they count against Income by DTI ratio and will approve less equity line?

@Nguyen Quach

Payments on a P+I HELOC are going to be more consistent than on an interest only HELOC that balloons up after the draw period. Lenders are qualifying you based on the assumption you're going to max the line. The more advantageous D/I ratio is going to depend on whether the interest only lender is going to use the draw or repayment period payment to qualify you.


So it has less to do with how Third Fed does things and more to do with how the other lender will. I'm not going to speculate on that since I'm not an underwriter. The Max line, however, is going to be capped by your L/V ratio as well. So the difference between the lenders is going to disappear as the customers ability to replay the loan (higher D/I ratio) ceases to be the limiting factor.

If the D/I ratio is driving any material difference in the size of the line then it's a major concern for the lender as compared to the L/V. I'd do some major soul searching before taking less favorable terms on a larger loan amount when one of the lenders is concerned about ability to make the payments - particularly when you're only getting the larger line from an interest only lender if they're looking at your ability to make draw period payments and not repayment period payments which will be roughly twice a large.

Sorry I don't have a simpler answer, but I hope my rambling is helpful. Best, David

also, should mention third fed only doesn't do investment property heloc, sorry. 

Updated 27 days ago

well, not sure actually. meant to say mine's not anyway.

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