Third Federal Savings And Loan Home Equity Review 2024

Qualified applicants can get home a equity loan or HELOC from Third Federal ranging from $10,000 to $200,000, but you’ll be limited to a maximum of 80% of your home equity. Here’s a closer look at its home equity product lineup.

Home Equity Loans

In addition to matching any competing lender’s rate, you won’t have to pay closing costs, prepayment penalties or annual fees when you take out a home equity loan with Third Federal. Current Third Federal customers also receive a 0.25% discount off their home equity loan rate.

That said, Third Federal might not be your first choice for a home equity loan since repayment terms on its fixed-rate loans are limited to either five or 10 years. If you’re comfortable with a variable rate, the lender offers a 5/1 adjustable equity loan, which works much like a 5/1 adjustable-rate mortgage.

Another drawback: Third Federal’s home equity loans are only available in eight states—California, Florida, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and Virginia.

Home Equity Lines of Credit

Similar to its home equity loans, Third Federal doesn’t require you to pay closing costs or prepayment penalties on its HELOCs. If you’re an existing Third Federal customer, you won’t have to pay annual fees either; however, if you’re a new customer, the lender will only waive the first year’s annual fee. There’s also no minimum draw requirements, meaning you can borrow as much or as little as you want once the line of credit is open.

Third Federal offers HELOCs in 26 states, which makes it a more widely available product than its home equity loans, but still not as far-reaching as other national lenders.

Related: Best HELOC Lenders

You’ll need to provide at least a month’s worth of pay stubs and your most recent W-2 statement when applying for a home equity product at Third Federal. If you’re self-employed, Third Federal requires two years of completed tax returns.

Third Federal will review details of your income and your home equity to determine your eligibility, however the lender didn’t disclose specific requirements to qualify for a home equity loan or HELOC, including minimum credit scores or a maximum debt-to-income (DTI) ratio. Your loan-to-value (LTV) ratio can be as high as 80%.

Third Federal proudly claims it doesn’t charge hidden fees on any of its equity products. There are no application fees, origination fees, prepayment penalties or closing costs (like credit reporting fees, appraisal fees or title service fees) on its home equity loans and HELOCs. There is, however, a $65 annual fee on HELOCs that you’ll need to pay after the first year, unless you’re an existing Third Federal customer.

You can get a rate quote online from Third Federal, with no impact to your credit score. Applications are also accepted by phone or in person at Third Federal’s Ohio or Florida branches.

It generally takes less than 15 minutes to complete a full loan application online, according to Third Federal. You’ll submit details about your property, assets, expenses and income, in addition to your financial documents (i.e. W-2s, pay stubs and tax returns).

You can expect to have a loan decision in seven to 10 days after you apply, and it can take up to 13 days to receive funds after you’re approved, according to a company spokesperson.

Getting turned down by Third Federal doesn’t mean you can’t tap into your home’s equity or find other financing. If your application is declined, try these options:

• Make sure you communicate with the lender and identify why you were denied.
• Search for another lender who will work with your situation.
• Take time to improve your credit score, pay down more of your mortgage principal or increase your income.
• Consider other loan types, such as a personal loan or cash-out refinance.
• Reapply with a co-applicant.

Customers have generally favorable things to say about Third Federal Savings and Loan. Reviews of the lender cite a fast and efficient mortgage process, knowledgeable loan officers and competitive rates. However, some borrowers complained about a delay in receiving funds, and others were less enthused by the customer support they received.

The lender also has an “A-” rating from the Better Business Bureau with only a handful of complaints. By comparison, some major banks have an “F” rating with thousands of customer complaints, including Citibank and Wells Fargo.

We graded Third Federal based on features that have a meaningful impact on the cost of a home equity loan and a borrower’s experience, including interest rates, loan options, ease of access, closing time and customer service.

We awarded bonus points if a lender doesn’t require closing costs on its home equity products, offers a specialty rate discount, a fixed-rate HELOC option, customizable terms for its home equity products and/or maintains a fully online application process.

Our scoring method is broken down as follows:

• Interest rate: 25%
• Time to close: 20%
• Accessibility: 20%
• Customer service experience: 20%
• Loan options: 15%
• Bonus points: Up to 20 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.