Bethpage Federal Credit Union
Highlights
-
HELOC, HELOC with fixed interest rate
-
From 8.50% (special offers can be found on the website)
-
N/A
-
1-800-628-7070
Bethpage Federal Credit Union, based in New York, has been in business for over 80 years and currently serves over 400,000 members across the United States.
Bethpage offers a variety of financial services, including mortgages, savings accounts and insurance. Additionally, homeowners can leverage their property’s equity and access cash with a home equity line of credit.
To do this, you must join the credit union, open a savings account, and deposit at least $5.
We like that Bethpage charges little to no fees on its HELOCs, is widely available throughout the U.S., and offers borrowers a fixed-rate option on its line of credit.
Read more: Best HELOC Lenders
Bethpage Federal Credit Union: At a Glance
| Products offered | HELOC, HELOC with fixed interest rate |
|---|---|
| APR range | From 8.50% (special offers can be found on the website) |
| Loan amounts | $10,000 to $1 million |
| Creditworthiness requirements | N/A |
| Repayment terms | 10-year payout period, 20-year repayment period (5-, 10- and 20-year terms for each amount converted to a fixed rate option) |
| Average financing time | 35 days |
pros and cons
Per
-
Limited fees: The lender covers closing costs for lines of credit up to $500,000. There are also no application, appraisal or processing fees.
-
Fixed interest rate flexibility: You can convert all or part of your variable rate loan into a fixed rate loan.
-
Widespread: Bethpage offers HELOCs in all states except Texas.
Disadvantages
-
No home loans: While Bethpage offers a fixed-rate HELOC, it is not a standard home equity loan option.
-
Promotional prices are not available to everyone: To qualify for Bethpage’s 12-month plan, you need a credit score of at least 720 and at least 25% equity in your home.
-
Must be a member of a credit union: Bethpage is a credit union, which means you must become a member to get a HELOC. You can join by opening a savings account with the lender and making a minimum deposit of $5.
Home equity product options
Bethpage offers a home equity line of credit with a 10-year payoff period and a 20-year repayment period. Borrowers have the option to make interest-only payments during the payoff period.
Although the credit union does not offer a standalone home equity loan, you can convert some of your outstanding HELOC debt into a fixed-rate loan.
For example, if you have a $120,000 credit line, you can lock in an interest rate of $50,000 to protect yourself against a potential higher interest rate – a helpful tool if you’re concerned about rising interest rates. You can convert a maximum of three blocks of $10,000 or more into the credit union’s fixed rate program.
Fees
Bethpage waives closing costs and origination fees for the first $500,000 of your line of credit, but if you close your account in less than 36 months, you will have to pay closing costs.
If you borrow more than $500,000, you are responsible for closing costs, mortgage and title insurance for the excess amount.
According to the lender’s website, total fees can range from $500 to $60,000, depending on the value of your home, the type of property and the amount of your credit limit.
How to qualify
First, you’ll need to become a member of the credit union. It’s easy: Deposit $5 into a savings account. Your combined loan-to-value ratio (your existing mortgage and your HELOC combined) can’t exceed 75% of your home’s value to qualify for Bethpage’s discounted 12-month promotional offer.
For example, if your property value is $400,000, your new total debt cannot exceed $300,000. In addition, you must withdraw at least $25,000 and arrange automatic payments of the HELOC from your Bethpage checking or savings account.
Although the credit union does not publicly disclose credit score requirements, you are typically more likely to qualify for a loan if you have excellent credit, a low debt-to-income ratio, and proof of a stable income. Another requirement is that the property must be your primary residence. Bethpage does not allow HELOCs on second homes.
Apply for a HELOC at Bethpage
Bethpage’s online application requires you to detail your outstanding mortgage debt, your finances, and your plans for the money you borrow. The process is quick and easy. If you’d prefer to speak to someone before completing the application, you can fill out a simple form with your contact information and a Bethpage loan specialist will be in touch.
Customer Service
To contact the credit union’s customer service, call 1-800-628-7070 Monday through Friday between 8 a.m. and 6 p.m. ET and Saturday between 10 a.m. and 8 p.m. ET. If you live on Long Island or in New York City, the credit union also has 35 branches there.
