Credit unions are often a go-to for HELOCs due to their member-focused approach and potentially lower interest rates. Unlike traditional banks or online lenders, credit unions prioritize affordability and personal service, which can result in better terms and lower fees. Credit unions also often provide more flexibility in lending requirements, making them appealing to a broader range of borrowers.
While credit union HELOCs can offer unique benefits, membership requirements and product variety may vary. Below, we’ve compiled the top credit unions offering HELOCs, so you can decide which option is best for you.
Note: If your credit score is below 720, it is unlikely that you will pass the prequalification stage for most HELOC lenders. If your score is higher than 580, see our highest-rated HELOCs for fair credit. Below 580, look into home equity agreements as an alternative.
Table of Contents
- Do credit unions offer HELOC loans?
- The best credit union HELOCs
- HELOCs from credit unions vs. banks and online lenders
- Is it easier to get a HELOC through a credit union?
- Who has the best HELOC rate: credit unions or banks?
- Do credit unions offer home equity loans?
- Can you get a credit union HELOC on an investment property?
Do credit unions offer HELOC loans?
Yes, many credit unions offer HELOCs. The process works the same way as at a bank, but credit unions often provide a more personal experience and may charge fewer fees. You’ll still need enough home equity to qualify, along with meeting the credit union’s membership requirements.
Some credit unions are easier to join than others, and their rates and features can vary widely. That’s why it helps to compare a few options side by side.
The best credit union HELOCs
After extensive research, we’ve identified four standout options that cater to different borrower needs. Here’s a closer look at each of our top picks and what makes them stand out.
FourLeaf FCU
Best Overall Credit Union
Why it’s one of the best
FourLeaf is located on Long Island, has 30 New York-area locations, and has more than 30,000 ATMs nationwide through the CO-OP ATM Network. Its services include banking, saving, investing, lending, credit counseling, and insurance.
FourLeaf charges no closing costs, application, origination, or appraisal fees on its HELOCs. Unlike many HELOCs, which have variable interest rates, FourLeaf offers fixed-rate loan options at the time of funding.
- Lock some or all of your HELOC to a fixed-rate loan
- Make interest-only payments during your draw period (the first 10 years)
- No closing costs or origination fees
- Fixed-rate loans and loan amounts over $500,000 are not eligible for the introductory rate APR.
Fourleaf HELOC rates and details
| Rates (APR) | Fixed 6.99% for 12 months, then as low as 8.50% variable |
| Loan amounts | $10,000 – $1 million |
| Repayment terms | Draw: 10 years / Repayment: 20 years |
| Max. LTV | 85% |
LendingTree
Best for Comparison Shopping Credit Union HELOCs
Why it’s one of the best
LendingTree isn’t a credit union itself, but it’s one of the easiest ways to explore HELOC options from credit unions nationwide alongside traditional banks and online lenders. The platform’s wide network often includes local and regional credit unions, which tend to offer lower rates, fewer fees, and more personalized service than large banks.
By using LendingTree, homeowners can quickly compare prequalified HELOC offers from multiple credit unions in one place—saving time while ensuring they find the most competitive terms available. LendingTree’s educational resources also help borrowers understand how credit union HELOCs work and what to expect during the application process.
- Access to a broad network of lenders, including many community and regional credit unions
- Simplified comparison tool for viewing prequalified HELOC rates and terms
- Educational guides that explain how credit union HELOCs differ from those at banks
- Interest rates and terms vary by lender
- Not all credit unions participate in the network
LendingTree HELOC rates and details
| Rates (APR) | Vary by lender |
| Loan amounts | $10,000 – $2 million |
| Repayment terms | Draw: 2 – 20 years / Repayment: 5 – 30 years |
| Max. LTV | Varies by lender |
Alliant Credit Union
Best Intro Rate
Why it’s one of the best
Alliant Credit Union Alliant Credit Union is a national digital bank that offers banking, lending, investing, and insurance services. Its HELOC features a competitive variable rate that adjusts monthly based on the prime rate, plus a fixed introductory rate of 3.99% APR for the first six months.
This intro rate makes it easier for borrowers to access funds affordably while managing short-term expenses. After the introductory period, the standard variable APR ranges from 7.50%.
- Borrow up to 90% of the value of your home
- 3.99% APR fixed intro rate for the first 6 months (then 7.50%–16.00% variable APR)
- Borrow only what you need, when you need it
- No closing costs or appraisal fees
- Complete the online application in minutes
- Alliant requires an appraisal only for HELOCs greater than $250,000
- Limited state availability
Alliant Credit Union HELOC rates and details
| Rates (APR) | 3.99% fixed intro rate for the first 6 months, then variable starting at 8.75% |
| Loan amounts | Minimum $10,000 in most states; Minimum $25,001 in Washington, D.C., and Wisconsin |
| Repayment terms | Draw: 10 years / Repayment: 20 years |
| Max. LTV | 85% |
States where available
An Alliant HELOC is available in the following states*: Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Pennsylvania, Tennessee, Utah, Virginia, Washington, Wisconsin, and Washington, D.C.
*Availability subject to change.
PenFed Credit Union
Why it’s one of the best
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’s HELOC stands out for its high limits ($1 million). It also allows borrowers to switch to a fixed interest rate on some or all of their interest payments.
- Take out a line of credit up to $500,000
- Can take out more than one PenFed equity loan or HELOC simultaneously for up to $1 million
- Switch from a variable to a fixed rate on all or some of your interest payments
- PenFed will pay most of the HELOC closing costs for many borrowers
- Must have a credit score of 700 or above
- Maximum combined LTV limit of 80%
- Must be a member to qualify
PenFed HELOC rates and details
| Rates (APR) | Starting at 6.99% |
| Loan amounts | Borrow up to $500,000 (or up to $1 million with two products) |
| Repayment terms | Draw: 10 years / Repayment: 20 years |
| Max. LTV | 80% |
HELOCs from credit unions vs. banks and online lenders
Credit unions work much like banks and online lenders when it comes to HELOCs. They determine your borrowing limit based on your loan-to-value (LTV) ratio, credit score, and financial profile, but typically offer lower fees, more flexible lending criteria, and a more personalized member experience.
For example, if your home is worth $500,000 and your mortgage balance is $300,000, a 95% LTV would allow you to borrow up to $175,000 ($500,000 × 0.95 – $300,000).
The main differences come down to speed, convenience, and costs. Credit unions may take longer to approve and fund loans because they often require in-person appraisals or membership verification, but they frequently waive appraisal and closing fees.
Online lenders such as Figure, Aven, and Spring EQ focus on speed and digital convenience, sometimes offering fixed-rate HELOCs or higher LTV limits.
| Feature | Credit unions | Online lenders and banks |
| Rates and fees | Lower rates, fewer fees | Competitive, may include origination fees |
| Speed and convenience | Slower approval, personal service | Fast, digital application and funding |
| Product structure | Variable-rate HELOCs | Often fixed-rate, full draw at origination |
| Loan-to-value (LTV) | Typically 80%–95% | Up to 90% for qualified borrowers |
| Appraisals | May require in-person appraisal | Often automated or virtual |
| Membership | Usually required | Not required |
| Best for | Lower costs and personalized support | Fast access and flexible options |
Is it easier to get a HELOC through a credit union?
It can be. Credit unions are often more flexible when evaluating HELOC applications, which can make qualifying easier compared to large banks or online lenders.
- Credit score: Credit unions may approve borrowers with moderate or fair credit, while banks often require higher scores.
- Debt-to-income ratio: Some credit unions allow higher DTI ratios, giving more room for borrowers with existing obligations.
- Home equity: Many credit unions permit higher loan-to-value (LTV) ratios, letting you borrow with less built-up equity.
- Employment and income: Credit unions may consider alternative income sources or nontraditional employment histories.
- Membership: You must join before applying, but most credit unions make this simple through a small donation or community affiliation.
Prequalifying with both a credit union and a bank can help you compare how each views your eligibility and what terms you might qualify for.
Check out our recommendations for the best HELOCs
Who has the best HELOC rate: credit unions or banks?
You might qualify for lower HELOC rates when borrowing from a credit union than a bank. Because credit unions are member-owned, the focus is on benefitting the members rather than increasing bank profit.
Of course, your HELOC rate depends on many factors, including your creditworthiness, income, the amount you want to borrow, and the value of your home.
Do credit unions offer home equity loans?
Yes, many credit unions offer home equity loans in addition to HELOCs. A home equity loan works more like a traditional installment loan, where you receive a lump sum upfront and repay it over a fixed term with a fixed interest rate.
Credit unions often price these loans competitively and may charge fewer fees than banks. That can make them a solid option if you prefer predictable monthly payments or want to borrow a specific amount for a project.
As with any lender, you’ll need enough equity in your home to qualify, along with meeting the credit union’s membership requirements. If you are comparing a HELOC with a home equity loan, a credit union can be a good place to start since many offer both products.
Can you get a credit union HELOC on an investment property?
Some credit unions offer HELOCs on investment properties, but the rules vary. Many limit HELOCs to primary residences because rentals carry more risk for the lender.
Among the credit unions in this article, PenFed is the only one that clearly allows HELOCs on investment properties. Alliant restricts its HELOCs to owner-occupied homes, and FourLeaf does not list investment properties as eligible.
Even when a credit union does allow it, you can expect tighter requirements. Lenders often want higher credit scores, more equity, and strong income for investment property HELOCs. Rates may also be higher than what you’d get on a primary home.
If you’re considering this, check with the credit union early, since availability and requirements can differ more than with standard HELOCs.
How we chose the best credit union 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.
About our contributors
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Written by Catherine CollinsCatherine Collins is a personal finance writer and author with more than 10 years of experience writing for top personal finance publications. As a mother to boy/girl twins, she is passionate about helping women and children learn about money and entrepreneurship. Cat is also the co-host of the Five Year You podcast.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.