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You can use a home equity line of credit (HELOC) to fund large expenses like medical bills, debt consolidation, investments and more. A HELOC may be a good fit for financially responsible homeowners that have a sizable home equity.

In Virginia, the best overall home equity line of credit lender is Bank of America. MoneyGeek found that the home equity line of credit rates for Virginia homeowners are between 0.99% and 18%.

Before you commit to a HELOC, we recommend shopping around to find a suitable lender. You might find a lender that offers the best rates while catering to your needs.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit (HELOC) Rates for 2023

Below, you’ll find a table that highlights APRs, loan amounts, repayment terms and other key details about home equity line of credit lenders. MoneyGeek updated this information as of May 2022.

Because rates and features constantly change, we will update this table regularly to provide the most current information.

Lender
APR
Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time

PenFed Credit Union

3.75% to 18%

$25,000 to $1,000,000

660

10-year draw period
and 20-year repayment period

None

N/A

PNC Bank

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Bank of America

1.99% special
introductory variable
APR for 6 months,
then as low as
4.35% variable

$25,000 to $1,000,000

Not specified

10-year draw period,
20-year repayment period

Not specified

Not specified

U.S. Bank

3.65% to 8.80%

$15,000 to $750,000

730

10-year draw period,
unspecified repayment period

$90

Not specified

Flagstar

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

$75

Not specified

SunTrust/Truist

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

None

24 hours

Figure

Starting at 3.50%

$15,000 to $400,000

620

5 to 30 years

3% to 4.99%

24 hours

Citizens Bank

Starting at Prime - 0.50%

Starting at $17,500

Not specified

10-year draw period,
15-year repayment period

$50

Not specified

TD Bank

Starting at 3.34%

Starting at $25,000

740

Not specified

$50

Not specified

Connexus Credit Union

3.49% for 6 months
(4.08% thereafter)

Starting at $5,000

Not specified

15-year draw period
with 15-year repayment period

None

24 hours

Regions Bank

3.75% to 10.63% variable

$10,000 to $500,000

Not specified

10-year draw period,
and then 20 years for repayment

None

Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Virginia

One of MoneyGeek’s main goals is to help you, the consumer, choose the best HELOC lender in Virginia for your financial situation. National banks aside, not many lenders offer loans for a home equity line of credit. If a national lender rejects your application, try applying with a local credit union that offers HELOC loans.

In this guide, you’ll find MoneyGeek’s review of different HELOC lenders in Virginia.

Best Overall HELOC Lender in Virginia: Bank of America


  • Bank of America

    Bank of America offers discounts for autopayments, initial withdrawals and for Preferred Rewards members.

    • 9.55%APR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • Not specifiedPre-Approval Time
    Bank of America

Best HELOC Lender for Good Credit in Virginia: U.S. Bank


  • U.S. Bank

    With U.S. Bank, you won’t pay any application fees or closing costs for a HELOC.

    • Not specifiedAPR Range
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time
    U.S. Bank

Best HELOC Lender for Bad Credit in Virginia: Figure


  • Figure

    Figure offers HELOCs to borrowers with low credit scores.

    • 8.25%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

Best HELOC Lender for Competitive Rates in Virginia: PenFed


  • PenFed Credit Union

    PenFed offers high maximum loan amounts at competitive rates to qualified borrowers.

    • Not specifiedAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • Not SpecifiedPre-Approval Time
    PenFed Credit Union

HELOC vs. Home Equity Loans

A home equity loan (HELOAN) and a home equity line of credit (HELOC) are ways that homeowners can borrow money based on the value of their home. However, there are key differences between the two.

Home equity loans allow homeowners to borrow against the equity in their home. With a HELOAN, homeowners are provided funds in a lump sum at a fixed interest rate and a fixed repayment term.

Meanwhile, a home equity line of credit functions similarly to a credit card. You can borrow money up to a certain limit until the end of the draw period. HELOCs are ideal for homeowners who want more flexibility since they have variable interest rates and change with economic trends.

Learn more about each loan to determine which one fits your financial needs in the table below.

HELOC
Home Equity Loan

Interest Rate

Adjustable interest rate,
but fixed-rate options are available

Fixed interest rate

Monthly Payment

Changes depending on
the amount of money borrowed

Fixed monthly payments

Repayment Terms

During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest

Repayment starts as soon as
the money is given to the borrower

Fund Disbursements

Line of credit

Lump sum delivery

How to Apply for a HELOC

Applying for a HELOC is usually very quick and easy since you can fill out an application online. You simply need to send your personal information and contact details, then wait for approval from your desired lender.

1

Determine how much you need

A HELOC may not suit every borrower’s needs. MoneyGeek finds HELOCs are best suited for financially responsible homeowners who know exactly how much they need to borrow. Because HELOCs are typically used to finance large payments, we don’t recommend getting one if you need less than $1,000.

2

Assess your financial standing

Consider your financial situation before taking out a home equity line of credit. It’s important to evaluate your existing debts, current credit score and capacity to make monthly payments. You may want to work on improving your credit score before applying for HELOC. That way, you’ll be eligible for the lowest interest rates.

3

Shop around and compare lenders

You’ll find that researching different lenders and comparing their offers can help you find the best available deal in Virginia. You may also be able to get low rates and favorable terms while avoiding extra fees before the loan begins.

4

Apply

HELOC lenders usually let potential borrowers apply online. To save you some time, gather relevant, verified documents such as proof of income, mortgage statements and bank statements before you apply. If you need more help, MoneyGeek also shares key insights for your HELOC application.

5

Use funds wisely

It’s important to be mindful of your repayment terms and any additional fees once you receive your funds. This will help you know how much you need to set aside for monthly payments.

Frequently Asked Questions About HELOCs

First-time borrowers may find that opening a home equity line of credit is challenging. To help you understand more about HELOCs, MoneyGeek answered some of the most commonly asked questions.

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