Indiana HELOC Rates and Lenders
Using a home equity line of credit (HELOC) to help with tasks like renovating your home in Indiana or consolidating high-interest debt can be a worthy financial move. It can help you reach your financial goals, whether it’s to increase your home’s value before selling it or saving on interest charges.
Indiana homeowners have many HELOC options, including national and local lenders. Shopping around lenders is one of the best ways to get the best rates. Start with our list below to help you find the best one.
Reviews of the best online HELOCs in Indiana
Choosing an online lender to borrow a HELOC instead of a local Indiana one can offer several benefits. For one, online lenders can offer more competitive rates since there may be less overhead for them to run their operations.
You may also be able to qualify for special offers that some local lenders don’t offer, like introductory interest rates or discounts. For example, you may get a lower interest rate by opting into automatic payments.
The lenders you see below offer some of the best Indiana HELOCs.
Figure
Best overall
Why we picked it
Figure is the top choice for HELOCs in Indiana, offering a competitive fixed rate. Figure’s innovative use of blockchain technology ensures a streamlined application process, with many loans funded within five days.
This quick turnaround is perfect for Indiana homeowners needing fast access to home equity for renovations, debt consolidation, or other major expenses.
The company’s transparent terms and exceptional customer service make Figure an excellent option for those seeking a reliable and efficient HELOC provider.
- 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 | $15,000 – $400,000 |
| Draw period | 5 years |
| Repayment term | 5, 10, 15, or 30 years |
| Funding time | As few as 5 days |
| Properties | Primary home, second home, or investment property |
| Credit score | 640 |
Bethpage
Best credit union
Why we picked it
Bethpage offers substantial HELOCs with a low fixed introductory rate for creditworthy borrowers. This makes it an excellent option for Indiana homeowners needing significant borrowing limits.
Bethpage’s large credit lines are ideal for major home renovations or other substantial expenses. With a straightforward application process, competitive rates, and a strong commitment to customer service, Bethpage provides the support and flexibility needed to access your home equity.
Its focus on personalized service ensures that Indiana homeowners get the assistance they need throughout the loan process.
- No application, origination, or appraisal fees
- Convert part of your HELOC to a fixed-rate option
- 12-month fixed introductory rate for qualified borrowers
- $0 closing costs
Loan details
| Rates (APR) | 6.99% for 12 months, then variable |
| Loan amounts | $10,000 – $1 million |
| Draw period | 10 years |
| Repayment term | 5, 10, or 20 years |
| Funding time | 36 – 70 days, on average |
| Properties | Primary homes, second homes, or condos |
| Credit score | 670 |
LendingTree
Best marketplace
Why we picked it
LendingTree excels at comparison shopping for Indiana residents.
The platform’s extensive network of lenders and user-friendly interface make it simple for homeowners to compare multiple HELOC offers. This ensures borrowers can find the most competitive rates and terms tailored to their specific financial needs.
By using LendingTree, Indiana homeowners can make informed decisions and secure the best possible deal for accessing their home equity.
- Access to multiple lenders
- Comprehensive comparison tools
- Competitive rates
- Customizable loan options
Loan details
| Rates (APR) | Starting at 6.24% |
| Loan amounts | $10,000 – $2 million |
| Draw period | 2 – 20 years |
| Repayment term | 5 – 30 years |
| Funding time | Varies |
| Properties | Varies |
| Credit score | Varies, 620 advisable |
Local HELOCs in Indiana
Local financial institutions offer many benefits when borrowing a HELOC. For one, you may already have a relationship with staff members at your local bank. This relationship could mean that local lenders can offer you different HELOC options or find ways for you to qualify for one.
For example, your credit score is a major factor in determining your eligibility for a loan. If you work with a local bank or credit union, these lenders may be more willing to extend you credit, since many of these organizations are there to help serve the local community.
Of course, you’ll still most likely meet eligibility criteria, such as being within a certain debt-to-income ratio, having proof of income, and having enough home equity.
| Company | Rates (APR) | Location |
| Indiana State University Federal Credit Union | Starting at 6.4% | Terre Haute |
| Centier Bank | Starting at 9.25% | Branches throughout Indiana |
| Wintrust Community Bank | Starting at 8.75% | Branches throughout Indiana |
| Indiana Members Credit Union | Starting at 3.90% | Branches throughout Indiana |
When choosing between local lenders, consider rates, how much you can borrow, and how easy it is to apply for a HELOC. Some community banks, for example, may have online applications, whereas smaller financial institutions may require you to apply in person.
What’s the difference between online and local HELOCs in Indiana?
Some of the main differences between online and Indiana HELOCs include factors like:
- Interest rates: Online lenders may offer more competitive interest rates, though only the most creditworthy borrowers qualify for them in most cases. That being said, rates with local credit unions may be just as competitive, since these financial institutions are in the business of helping their members.
- Ability to get prequalified: In most cases, you may be able to get a quote without affecting your credit score with online lenders. The option may be with local lenders, but you’ll have to contact the bank or credit union to find out.
- Personalized service: Local lenders tend to have a dedicated loan officer or representative you work without throughout the HELOC process. You may even be able to speak with them in person. You may receive personalized service with online lenders, but you’ll only be able to speak with them online or on the phone.
- Credit requirements: Both online and local lenders have minimum requirements for applicants. However, local lenders may be more willing to work with you on finding ways to qualify you for a HELOC if your credit score is less than stellar.
Ask the expert
The value of high-quality service cannot be emphasized enough. For people who value relationships, a local lender is typically a good option, at the potential risk of higher costs and fees.Another added benefit of working with a local credit union! Flexibility and treating you like a “real person,” rather than just a number.
How do Indiana HELOC rates compare to other states?
There isn’t clear data on average HELOC rates in Indiana, and many local banks and credit unions don’t advertise their rates online. From several that we found, rates are on par with what other online lenders offer. Using the local lenders, we reference above, the average HELOC rate hovers around 7%.
Aside from rates set by the Federal Reserve, other factors could affect HELOC rates in Indiana, among other states. For one, your home’s current market value can determine whether you can get a HELOC. Plus, if home values decline, your lender may decide it won’t lend you any more money. This is also the case if your income, credit score, or DTI decrease.
In Indiana, home prices have increased 3.4% year over year, according to RedFin data. This may indicate that HELOC lenders feel fine with continuing to lend to homeowners in the state. Since your home acts as collateral for HELOC lenders, an upward trajectory for home prices is a positive sign.
What does this all mean? Your location doesn’t have a major impact on HELOC rates. Rather, factors that you may be able to influence might.
How to get the best HELOC rates in Indiana
One of the best ways to get the best Indiana HELOC rates is to shop around for the right lender. You can start by getting quotes from various online lenders, and contact local ones (if you so choose) to compare your options.
Aside from rates, you may want to consider other features like payment terms—like how long the draw and repayments are to choose from, if any. Or, see how the maximum you can borrow, as some lenders may allow you to borrow from a higher portion of your home equity than others.
Other eligibility requirements that may affect your ability to get the lowest rate include:
- Credit score: Your credit score is a snapshot of your borrowing history. In other words, the higher your score, the less risk you pose to lenders because you’ve demonstrated that you’ve paid back loans on time. Check your credit score and see if there’s any way you can improve it to help your chances of scoring a lower rate.
- Debt-to-income ratio (DTI): Your DTI ratio considers how much of your income is being used towards debt. The higher your DTI, the more it could affect your ability to qualify for a HELOC.
Ask the expert
If you don’t have the credit score to get the lowest HELOC rates, first understand what is negatively impacting your score and address it. Once you understand how to improve your credit score, there may be other factors preventing you from getting a HELOC or a favorable rate. At this point, ask the lender what the credit report says on its end to understand why you aren’t being approved. Sometimes, it is a matter of your DTI ratio, in which you can consolidate or pay off a loan balance.
Are there any Indiana-specific requirements or regulations?
While there aren’t Indiana-specific laws or regulations that could affect HELOC rates or terms, all lenders must follow guidelines set by Regulation Z, or the Truth in Lending Act (TILA).
Regulation Z requires HELOC lenders to:
- List out any fees you may need to pay for opening and maintain your HELOC
- List the minimum and maximum amounts you can borrow
- Provide detailed information on rates and when it may change
- Provide disclosures, such as repayment terms and what can happen if you default
FAQ
What credit score do you need for an Indiana HELOC?
Credit scores play a significant role in securing a HELOC in Indiana. Many lenders require a minimum credit score for a HELOC of 620. However, aim for a score of 700 or higher for the best rates and terms. A higher score improves approval chances and may lower your interest rate and associated costs.
What are the typical fees for an Indiana HELOC?
Fees for an Indiana HELOC can vary, but common costs include application fees, appraisal fees, and closing costs. Application fees range from $0 to $500. Appraisal fees may cost between $300 and $500, depending on the property’s value and location.
Closing costs usually range from 2% to 5% of the loan amount. Some lenders may waive or reduce fees for qualified applicants, so it’s worth shopping around.
Are there any special programs or incentives for Indiana HELOCs?
Yes, Indiana offers special programs and incentives to homeowners seeking HELOCs. Some lenders provide promotional rates for a limited period, such as six months to one year. Programs for veterans and first-time homebuyers offer reduced fees or rates.
Nonprofit organizations and state agencies may also provide grants or low-interest loans for eligible homeowners. Researching these options can help you save money and find the best deal for your financial situation.
How we chose the best HELOC lenders in Indiana
LendEDU evaluates HELOC lenders to help readers find the best HELOCs. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. They’ve gone through an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Indiana.
Since most local lenders aren’t available outside state lines, they haven’t gone through the same review process as the online lenders. Instead, we found them through separate research and determined that each offered solutions worthy of consideration by readers.
Recap of Indiana HELOC rates and lenders
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