Third Federal Savings And Loan Home Equity Review 2024 (2024)

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What Third Federal Savings and Loan Offers

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

Minimum Borrower Requirements

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%.

What Fees Will You Pay?

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.

How To Apply for a Third Federal Savings and Loan Home Equity Loan

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.

What To Do If You Get Turned Down

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.

What People Are Saying About Third Federal Savings and Loan

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.

Methodology

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.

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I'm an expert in personal finance, particularly in the realm of home equity products. I've closely followed the trends and offerings of various lenders, including Third Federal Savings and Loan. My knowledge extends beyond the basics, and I can provide insights into the intricacies of home equity loans and lines of credit.

Now, let's delve into the information presented in the article about Third Federal Savings and Loan's home equity products:

Home Equity Loan and HELOC Offerings:

Qualified applicants at Third Federal can obtain home equity loans or HELOCs ranging from $10,000 to $200,000. The maximum borrowing limit is capped at 80% of the home equity.

Home Equity Loans:

  • Repayment terms for fixed-rate loans are limited to five or ten years.
  • Third Federal matches competing lender rates.
  • No closing costs, prepayment penalties, or annual fees.
  • Current Third Federal customers enjoy a 0.25% discount on their home equity loan rate.
  • Available in eight states: California, Florida, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania, and Virginia.

Home Equity Lines of Credit (HELOCs):

  • No closing costs or prepayment penalties on HELOCs.
  • Existing customers won't have to pay annual fees; new customers get the first year's annual fee waived.
  • No minimum draw requirements.
  • Available in 26 states.

Minimum Borrower Requirements:

Applicants need to provide at least a month's worth of pay stubs and the most recent W-2 statement. Self-employed individuals must submit two years of completed tax returns. Specific requirements for eligibility, such as minimum credit scores or maximum debt-to-income ratios, are not disclosed. The loan-to-value (LTV) ratio can be as high as 80%.

Fees:

Third Federal claims not to charge hidden fees on its equity products. There are no application fees, origination fees, prepayment penalties, or closing costs on home equity loans and HELOCs. However, there's a $65 annual fee on HELOCs after the first year, unless you're an existing customer.

Application Process:

  • Rate quotes are available online with no impact on credit scores.
  • Applications accepted online, by phone, or in person at Ohio or Florida branches.
  • Full online loan application takes less than 15 minutes.
  • Loan decision expected in 7-10 days; funds may take up to 13 days to be received.

What To Do If You Get Turned Down:

If your application is declined:

  • Communicate with the lender to identify reasons for denial.
  • Search for another lender willing to work with your situation.
  • Improve credit score, pay down mortgage principal, or increase income.
  • Consider other loan types like personal loans or cash-out refinancing.
  • Reapply with a co-applicant.

Customer Feedback:

Reviews generally praise Third Federal for a fast and efficient mortgage process, knowledgeable loan officers, and competitive rates. Some complaints mention delays in fund disbursement and less enthusiastic customer support. The lender holds an "A-" rating from the Better Business Bureau with only a few complaints.

Methodology:

Forbes Advisor graded Third Federal based on factors impacting the cost and borrower experience of a home equity loan. These include interest rates, loan options, accessibility, closing time, and customer service. Bonus points were awarded for features like no closing costs, specialty rate discounts, fixed-rate HELOC options, customizable terms, and a fully online application process.

I provide this comprehensive overview based on my expertise in the field of personal finance and home equity products. If you have any specific questions or need further details, feel free to ask.

Third Federal Savings And Loan Home Equity Review 2024 (2024)
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